Ampol: Retailer and refiner’s profits squeezed | Australian Markets

Petrol retailer and refiner Ampol’s income have been smashed however the company reckons fuel demand will keep robust till the 2030’s amid a sluggish vitality transition.

The Sydney-based company’s revenue sunk virtually 80 per cent to $123 million for 2024 as a robust refining market hit the company arduous. Income fell 8 per cent as a consequence of falling oil and fuel costs.

“Australian transport fuel demand is at an all time high despite the country’s efforts to transition away from fossil fuels,” chief govt Matt Halliday instructed traders on Monday.

“We expect fuel demand to be robust well into the 2030s.”

He stated transition choices had been trying to be additional sooner or later because the “complexity and cost of this challenge becomes even clearer”.

Electrical vehicle uptake in Australia was flat, Mr Halliday stated.

“EVs remain a very small proportion of the total fleet,” he stated.

“The roll-out of charging infrastructure has also been slow, highlighting the constraints in the system, including around grid connectivity.”

Ampol ‘s share of the Aussie petrol market is about 25 per cent, but retail sales fell 3.5 per cent through the year.

The $6.7 billion company’s Lytton Refinery in Queensland additionally hit hassle with a “material deterioration of global refining conditions” and a sequence of unplanned manufacturing issues.

UBS analyst Tom Allen zeroed in on a “weaker” efficiency at Z Power, Ampol’s New Zealand arm.

“Ampol historically has good form on the consistency of its capital framework but a weaker (dividend) payout will disappoint some,” he stated.

Mr Allen stated markets had been additionally too optimistic about earnings at Lytton.

“That aside, a relatively clean result with $50m cost out reaffirmed for 2025 with efficiencies to come from curtailed new energy spend, tech and supply chain plus more cost-out hinted, albeit detail remains light,” he stated.

Shares fell 2.6 per cent to $27.31.