Service station chain and refiner Ampol has slashed its dividend by more than a third as drivers try to cut their fuel bills to curb cost of living pressures.
The petroleum company on Monday reported a net profit of $235.2 million for the six months to June 30, up from $79.1 million a year earlier, on sales volume of 13.25 billion litres.
Fuel volumes were down 4.8 per cent, largely in base grade petrol as prices remain elevated, but fuel margins more than offset the decline in volume as Ampol focused on selling more premium fuels.
Shares in Ampol fell $1.50 or 4.7 per cent to $30.59 as the interim dividend was slashed to 60 cents per share from 95 cents.
Lytton refinery’s total production for the half was down 5.8 per cent, reflecting the impact of the refinery-wide outage and delay in the supply of catalyst due to disruptions in Red Sea shipping during the first quarter.
Production and the product mix at the Brisbane refinery was expected to return to normal levels by the end of August, Ampol said.
Including a final investment decision on an Ultra Low Sulfur Fuels project at Lytton, total capital expenditure was estimated at $600 million for the full year.
Under the project, Ampol intends to upgrade the refinery to meet new fuel standards for regular and premium fuel.
Moody’s Ratings analyst Sean Williams said the group had “sufficient headroom” for the upcoming fuels project and the planned turnaround and inspection of its Lytton refinery in the third quarter of 2024.
The on-the-go electric vehicle charging network has grown to 92 charging bays at 41 sites, subsidised by government programs.
“Ampol has delivered a resilient performance through a determined focus on the things we can control,” managing director Matt Halliday said.
“This is a significant achievement in an environment of tougher economic conditions across Australia and New Zealand.”
But a core measure of operating profit from ongoing operations fell 29 per cent to $233.7 million, excluding significant items.
Shop income was broadly in line with a year ago despite cost-of-living pressures and the continued decline in tobacco (15.3 per cent).
The first-half group replacement cost operating profit earnings before interest and tax fell 13 per cent to $502.1 million.
Earnings in convenience retail for the first half rose 4.7 per cent to $175 million compared to a year earlier.
Ampol said core trading retail metrics remained strong and shop gross margin continued to increase, reaching 37 per cent through a combination of product and channel mix, attachment and pricing.
Total Ampol branded sites as of 30 June were 1766, including 633 company-operated sites, with the retail refresh of flagship sites complete including Ampol-operated Hungry Jack’s.
