Ampol cuts dividend as refinery outage hits profit
An unexpected breakdown at Ampol’s only oil refinery drove a 26 per cent drop in first-half core profit, but chief executive Matt Halliday said the result was “strong”, and reliance of domestic fuel supplies is reducing.
The benchmark figure – net operating profit excluding one-offs – slid to $329.6 million in the six months to June 30, from $444.7 million a year earlier. Statutory profit slumped 88 per cent to $79.1 million, driven by a loss on stockpile values.
Ampol chief executive Matt Halliday says the performance is “pleasing” despite the refining outage. Louie Douvis
Ampol, formerly Caltex Australia, slashed its first-half dividend to 95¢ per share, from $1.20 a year ago, despite the payout ratio being towards the top of the range.
But Ampol pointed to positive elements early in this second half, with higher-than average refining margins in July and a “promising” start to August. While fuel margins for convenience retailing softened in July, that should “normalise” as prices stabilise and Ampol said it expected “continued strong shop performance” in the current economic environment.
Earnings at the refining unit, focused on the Lytton refinery in Brisbane, dived 77 per cent to $100.3 million in the first half, contributing to a 47 per cent slide in earnings before interest and tax in the fuels and infrastructure business, to $303.9 million.
EBIT in convenience retailing jumped 31 per cent to $167.1 million, while EBIT in the Z Energy retail business in New Zealand surged almost ninefold to $122.8 million.
Mr Halliday said the value of Ampol’s integrated supply chain for petrol, diesel and jet fuel was on full display in the half.
“The team adapted to the changing market conditions and a refinery outage to deliver
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