Ampol cuts interim dividend as first half profit falls 29%
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The news: Ampol recorded lower first-half profit and reduced its interim dividend after the fuel retailer grappled with softer international sales and an outage at its Lytton refinery in Queensland.
The numbers: Ampol reported replacement cost of sales (RCOP) profit after tax of $233.7 million, down 29.1% year on year. Total revenue reduced 1.1% to $18.2 billion and group RCOP EBITDA, excluding significant items, fell 7.7% to 736.5 million.
The company declared an interim dividend of 60 cents per share, down from 95 cents in FY23.
The context: Ampol said that its earnings were hit by short-term impacts from disrupted production at its Lytton refinery and softer international third-party sales and margins. Lytton RCOP EBIT was down 11% to $89.5 million compared to the FY23 first half.
However, the company said that the turnaround and inspection at Lytton commenced in mid-July and is currently on track, with production expected to return to normal levels and high value product mix at the end of August.
Since the end of June, the "high levels of reliability" in the global refinery system seen in the first half has continued, Ampol said, keeping markets well supplied during the northern hemisphere summer and contributing to lower product cracks.
What they said: Ampol CEO Matt Halliday said: "Ampol has delivered a resilient performance through a determined focus on the things we can control. This is a significant achievement in an environment of tougher economic conditions across Australia and New Zealand".
The source: ASX announcement
