Ampol (ALD) posts stronger FY25 result as core profit and refining margins improve
Ampol’s FY25 result was driven by stronger refining margins at Lytton and steady growth in Australian and New Zealand fuel and convenience earnings, with the balance sheet back inside target gearing ahead of EG Australia.
Ampol earnings lift on Lytton rebound and resilient retail Group RCOP EBITDA rose 20% to 1.44bn, with RCOP EBIT up 32% to 947m as Lytton swung back to meaningful profitability and non‑refining earnings grew 3.5%. RCOP NPAT (ex‑significant items) increased 83% to 429m, while statutory NPAT fell to 82m due to 253.8m of after‑tax significant items including a non‑cash Seaoil impairment. Convenience Retail EBIT rose 4.8% to 373.7m as premium fuel mix improved and shop gross margin expanded 2.7ppts to 40.0%, despite a sharp decline in tobacco. Network shop sales ex‑tobacco and U‑GO grew 2.8%, supported by QSR, beverages, chilled perishables, bakery and general merchandise, with tobacco now only ~16% of shop sales. Fuels & Infrastructure EBIT doubled to 405.6m, led by Lytton RCOP EBIT of 163.1m versus 42.3m a year ago on higher refiner margins (LRM 10.34 US/bbl vs 7.08) and improved reliability. FI Australia ex‑Lytton EBIT grew 8.2% to 272.1m on better wholesale margins and customer remix, while FI International EBIT eased to 11.1m as Ampol prioritised supply into its own system over discretionary trading. New Zealand RCOP EBIT edged 0.9% higher (in AUD) to 233.9m amid a soft economy, with a weak 3Q offset by a 4Q rebound to first‑half run‑rates. Retail refreshes (25 stores), 27 U‑GO sites and the Z Rewards launch (580k users in nine months) lifted ex‑tobacco shop sales 6.3% and refreshed stores’ sales 9.7%. Capital and financial position Net borrowings increased slightly to 2.9bn, but leverage fell to 2.3x Adjusted Net Debt/RCOP EBITDA, squarely inside the 2.0–2.5x target range. Net capex was 563m after 174m of divestment proceeds from Channel Infrastructure and retail electricity exits, while gross capex reached 738m, including step‑up spend on the Ultra Low Sulfur Fuels project. The board declared a fully franked 60cps final dividend, taking full‑year ordinary dividends to 100cps and implying a 56% payout of FY25 RCOP NPAT. What’s next… Ampol flags a strong start to 2026, with Convenience Retail and New Zealand benefitting from higher retail margins and stable volumes, and FI Australia and International trading ahead of last year. January Lytton refiner margin of 8.13 US/bbl remains supportive, although a mid‑year FCCU turnaround will trim production by around 300 ML through late 3Q. Key near‑term drivers are the ACCC’s Phase 2 decision on EG Australia (expected June 2026), finalisation of Phase 1 of the Fuel Security Services Payment review in 1Q26, and commissioning of the Ultra Low Sulfur Fuels project from 2Q26. Management is also targeting a further 50m of nominal cost reductions across 2026–27, with productivity gains across Lytton, the fuels supply chain and unstaffed U‑GO sites. CEO quote: “The financial performance in 2025 is a high quality and broad‑based result that reflects the steps taken in recent years to strengthen our delivery and increase our exposure to the more stable and growing business segments.”
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