Ampol (ASX:ALD) Gears Up for FY25 with AUD 50 Million Cost-Reduction Target

Highlights

• The company recently announced a fully franked interim dividend of 60 cents per share, reflecting 61% of RCOP NPAT.
• In 3QFY24, 6.5 billion litres of fuel were sold across stable segments.
• ALD’s FY24 net capital expenditure is expected at nearly AUD 650 million.

Ampol Ltd (ASX:ALD) is an ASX-listed integrated fuel and convenience retailer that is engaged in the management of a diverse portfolio spanning refining, fuel distribution, and convenience retail operations.

For the first half of the financial year 2024 (1HFY24), Ampol announced a fully franked interim dividend of 60 cents per share, equating to 61% of its RCOP NPAT. This translates to AU$143 million in total returns to shareholders and the release of AU$61 million in franking credits.

In 1HFY24, ALD’s revenue from ordinary activities dropped by almost 1% to AUD 18,243.70 million, underpinned by 6% YoY decline in the group’s sales volumes. The period recorded 197.35% YoY rise in the statutory NPAT (attributable to parent) to AUD 235.20 million. 

Recent business update

Through an ASX update dated 15 October 2024, the company shared that in the third quarter of FY24 (3QFY24), it recorded total fuel sales volumes of 6.5 billion litres, driven by stable performance across its Convenience Retail, New Zealand, and Fuels & Infrastructure (F&I) Australia segments. However, the quarter’s performance was impacted by the planned Reformer Turnaround and Inspection (T&I) at the Lytton refinery, along with a substantial decline in finished and intermediate product crack spreads.

Outlook

In 2024, the company expects to record net capital expenditure of nearly AUD 650 million and increase in leverage is anticipated by the year-end due to the timing of investments and refining performance. Furthermore, the company expects to return to its targeted leverage range in 2025.

 In FY25, the company targets AUD 50 million cost reduction. 

Top 10 shareholders of ALD

The top 10 shareholders of ALD collectively hold approximately 40.25% of the company’s total shareholding. AustralianSuper holds the largest stake, at 9.49%, followed by The Vanguard Group, Inc., with a 6.08% share.

Share performance of ALD

ALD shares closed 1.51% lower at AUD 26.71 per share on 18 December 2024. Over the past year, ALD’s share price has dropped by 23.66%, and in the last three months, the share price has declined by nearly 7.13%.

52-week high of ALD is AUD 42.35, recorded on 5 April 2024 while 52-week low is AUD 27.05, recorded on 17 December 2024.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 18 December 2024. The reference data in this report has been partly sourced from EODHD/Others.

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