Ampol shares up on solid half-year results
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More news: Ampol shares were 1.49% higher at 12:06pm AEDT after the company lifted its dividend and upgraded its guidance.
UBS analysts said the result was “solid” but that investors would be focusing on the growing capital demands on the business, as its FY24 capex guide of $570 million was higher than consensus but could moderate.
“Capex appears to be directed to the ultra low sulphur fuels project at Lytton, significant EV charging growth and premium site upgrades,” they said.
Ampol lifts dividend on improved FY earnings
The news: Fuel refiner and retailer Ampol has lifted its shareholder payout after improving full-year earnings on the back of record sales volumes.
The numbers: Statutory profit for the year to December 2023 fell 24.5% to $549.1 million, due to a higher loss on the value of stockpiles. However, its more closely-watched replacement cost operating profit rose 1.1% to $740.1 million. The company will pay a final dividend of 120 cents a share, up from 105 cents a year ago, and also lifted the special dividend to 60 cents a share from 50 cents previously.
The context: Earlier this year, Ampol flagged lower earnings at its Lytton refinery due to a squeeze in refiner margins and lower refinery volumes. However, this was offset by growth in earnings from non-refining divisions.
Non-refining earnings included a consistently strong performance in its Australian convenience retail business as well as performance improvements and synergies within the New Zealand-based Z Energy, it said. Group earnings rose 2.9% from a year ago to $1.76 billion.
What they said: “The result reinforces the adaptability and resilience of Ampol’s integrated supply chain in what was another year where energy markets moved rapidly in response to geopolitical events,” CEO Matt Halliday said.
The source: ASX announcement
