Ampol Limited reported record first-half earnings on Monday, with underlying profit surging 376% as exceptional refining margins at its Lytton refinery offset weaker fuel volumes and a decline in New Zealand earnings.
Underlying earnings before interest, tax, depreciation and amortisation (RCOP EBITDA) reached $1.64 billion for the six months to June 30, up 152% from $648.9 million in the same period of 2025. Attributable net profit rose to $857.2 million, compared with $180.2 million a year earlier, while statutory net profit totalled $1.36 billion, including $527.6 million in after-tax inventory gains.
The company declared a fully franked interim dividend of 185 cents per share, equating to a $441 million payout to shareholders. Shares rose 4.32% to $41.57, nearing the 52-week high of $41.83.
Refining margins at the Lytton refinery averaged $28.26 per barrel in the first half, a 280% increase from $7.44 per barrel a year ago. Peak monthly margins reached $56.14 per barrel in March, while July’s margin stood at $27.11 per barrel. The refinery’s dollar-denominated margin contributed $526 million to earnings growth, with higher volumes adding a further $17 million.
Total fuel sales volumes fell marginally to 12.30 billion litres from 12.45 billion litres in the first half of 2025, though Australian wholesale fuel sales increased 2.9%, led by diesel and jet fuel. Refinery production rose 8.7% to 2,945 million litres, operating at approximately 84% utilisation.
The Fuels & Infrastructure segment delivered RCOP EBIT of $1,134.5 million, an 859% increase year-on-year. Lytton’s contribution rose by $531 million, while F&I International added $305 million and F&I Australia contributed $174 million. Convenience Retail EBIT increased 12% to $204.5 million, maintaining a compound annual growth rate of more than 5% over the past six years.
New Zealand earnings declined 19% to $103.8 million. Net borrowings stood at $3.52 billion, with a leverage ratio of 1.8 times, below the company’s target range of 2.0–2.5 times. Management expects leverage to improve further in the second half before returning toward the mid-cycle range in 2027.
Ampol completed the acquisition of EG Australia on June 30 for a total consideration of $1.136 billion, comprising $850 million in cash and $315 million in cash-settled scrip. The deal added approximately 1,080 company-operated sites, with 41 to be divested. Pre-tax synergies of $65–80 million annually are targeted within two years of completion.
Capital expenditure for 2026 is expected to reach about $600 million, with outlays projected to decline to roughly $450 million annually in 2027 following the completion of the Ultra Low Sulfur Fuels project and the Lytton FCCU turnaround.
