Ampol Limited

Ampol reported RCOP EBITDA of $1.64 billion, up 152% year on year, RCOP EBIT of $1.39 billion, up 245%, and RCOP NPAT of $857 million; statutory NPAT was $1.36 billion. Group sales volumes were 12.3 billion liters, up 1.5% excluding net-sell. The Lytton refiner margin averaged USD 28.26 per barrel versus USD 7.44 per barrel in the prior corresponding period. Convenience Retail shop gross margin was 40.1%, and F&I Australia EBIT reached $309 million. Net borrowings ended at $3.52 billion and leverage was around 1.8x. The board declared a $1.85 per share interim dividend, totaling $441 million. For the second half, management said July Lytton realized refiner margin was USD 27.11 per barrel with production of 524 million liters, the FCCU turnaround began in late July with start-up expected in October, and the low sulfur fuels project is expected to start up toward the end of the year. They also target a further $50 million of nominal cost reduction across 2026 and 2027, and said EG synergies of $65 million to $80 million per year are expected within 2 years post completion.

Matt Halliday framed the quarter as proof that Ampol’s integrated supply, trading, logistics and retail platform works especially well in tight and disrupted markets. He emphasized that the result was built on years of investment in supply optimization, Lytton, risk management and retail networks, not just a one-off market spike. His tone was confident and strategic, with a clear message that Ampol is building a broader, more resilient earnings base through Convenience Retail, U-GO, EG integration, and refining support from FSSP.

Greg Barnes underscored that the half-year earnings were extraordinary, saying first-half 2026 earnings exceeded any full-year result Ampol has ever reported. He cited RCOP EBITDA of $1.6 billion, RCOP EBIT of $1.4 billion, RCOP NPAT of $857 million, statutory NPAT of $1.4 billion, and explained that lower interest expense reflected lower debt before the EG acquisition; the effective tax rate was 30%, or about 28.5% underlying. On the balance sheet, he noted net borrowings of $3.5 billion, leverage of 1.8 turns, $315 million cash paid for the EG scrip component, $148 million of additional inventory held with Export Finance Australia, and a $441 million interim dividend. He also reiterated confidence in $65 million to $80 million of annual EG synergies and said CapEx should step down toward about $450 million as major projects wind down.

Analysts focused on whether Ampol should hedge refining exposure, how to think about the FCCU turnaround, the scale and economics of U-GO, tobacco enforcement, leverage and capital returns, and the future of FSSP Phase 2 and fuel-storage policy. Management said it usually does not hedge much refining margin exposure but reviews it from time to time, and that the turnaround will mainly affect gasoline while Lytton runs at about 70% of normal capacity. On U-GO, management said site selection is case-by-case, expects 185 sites including EG over about 2 years, and believes the economics are at or better than a roughly 1-year payback. They also said they are aiming for a clear direction on FSSP Phase 2 by year-end and see the policy as important for making the refineries investable over the long term.