Ampol cuts dividend after half-year profit drop

The news: Fuel refiner and retailer Ampol has posted a sharp drop in profit after an outage at its refinery, prompting a lower dividend payout.

The numbers: Statutory profit for the six months to 30 June slumped 88% to $79.1 million, due to a loss on the value of stockpiles. Its more closely watched replacement cost operating profit fell 26% to $329.6 million. The company cut its first-half dividend to 95 cents a share, from $1.20 a year ago.

The context: Ampol’s Lytton refinery in Brisbane suffered a technical fault in March, with normal production resuming only at the end of May, which resulted in a slide in earnings from its refining unit. However, earnings in convenience retailing and its Z Energy retail business in New Zealand remained strong.