Ampol Limited

Ampol reported RCOP EBITDA of $1.64 billion, RCOP EBIT of $1.39 billion, and RCOP NPAT of $857 million for the half; Statutory NPAT was $1.36 billion. These results were up sharply on the prior corresponding period, with RCOP EBITDA up 152% and RCOP EBIT up 245%. Group sales volumes were 12.3 billion liters, up 1.5%, and net borrowings were about $3.5 billion with leverage at 1.8x. The company declared a $1.85 per share interim dividend totaling $441 million. On the segment side, Convenience Retail EBIT increased by $21.8 million year-on-year, F&I Australia EBIT rose to $309 million, and Lytton refiner margin averaged USD 28.26 per barrel versus USD 7.44 per barrel a year ago. Looking ahead, management said July Lytton realized refiner margin was USD 27.11 per barrel with production of 524 million liters, the FCCU turnaround at Lytton started in late July and Lytton will run at about 70% of normal levels during that period. They also reiterated EG integration synergies of $65 million to $80 million per annum within 2 years, targeted $50 million of nominal cost reduction across 2026 and 2027, and expected leverage to move below 1.8x in the second half, with mid-cycle leverage targeted back in the 2 to 2.5 range.

Matt Halliday framed the quarter as proof that Ampol’s integrated fuel supply, logistics, trading and retail platform is working as intended, especially in disrupted markets. He emphasized that the company has built this capability over many years and said the first half showed the value of that investment in both supply security and shareholder returns. He also sounded constructive on the outlook, saying tight product markets and policy support for refining and storage could remain favorable, even if not at first-half extremes.

Greg Barnes emphasized that this was the strongest half the company has ever reported, saying first-half earnings exceeded any full-year result Ampol had previously reported. He pointed to strong cash generation despite higher inventory, net borrowings of about $3.5 billion, leverage of 1.8 turns, and the cash settlement of the EG scrip component for $315 million. He also highlighted the capital framework: a strong investment-grade balance sheet, dividends within a 50% to 70% payout range of RCOP NPAT, and returning surplus capital when there are no better on-strategy growth opportunities.

Analysts pressed on whether Ampol should hedge refining exposure given strong forward cracks; management said it reviews hedging from time to time but does not usually hedge much and sees value in keeping the integrated trading/refining position exposed to tight markets. Questions also focused on U-GO sizing, tobacco trends, leverage, FSSP Phase 2, EV charging breakeven, EG integration, and the 41-site divestment; management said U-GO could reach 185 sites over about 2 years, tobacco has recently stabilized and even returned to growth, and leverage should improve further in the second half. On FSSP and fuel security, management said Phase 1 support had increased materially and Phase 2 is aimed at making refining investable longer term, with a desire to have clarity by the end of this calendar year.