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Highlights
- Share Price Drop: Ampol shares fall 3.1% to $27.16, underperforming the ASX 200’s 0.9% decline.
- Earnings Decline: RCOP EBIT down 45% to $715 million, with NPAT plunging 68% to $235 million.
- Dividend Slashed: Final dividend cut to 5 cents per share, a sharp drop from $1.80 last year.
Shares of Ampol Ltd (ASX:ALD) tumbled on Monday, falling 3.1% to $27.16 in early trade. This decline comes after the Australian fuel supplier released its full-year 2024 results, revealing steep profit declines and mounting refinery losses.
While the ASX 200 index was down 0.9% at the same time, Ampol’s larger drop reflects investor concerns over the company’s deteriorating financial performance and refinery struggles.
Earnings Collapse as Refinery Losses Bite
Ampol reported a 45% drop in RCOP EBIT to $715 million, while RCOP EBITDA fell 32% to $1.2 billion. The most alarming figure was the 68% plunge in RCOP net profit after tax (NPAT) to $235 million, with statutory NPAT down 78% to $123 million.
The biggest drag on performance came from the Lytton refinery, which posted a $42 million full-year EBIT loss, a stark reversal from its $363 million EBIT profit in 2023. The refinery was hit by challenging global refining conditions and operational disruptions throughout the year.
Dividend Cut and Rising Debt Weigh on Sentiment
Adding to investor concerns, Ampol slashed its final dividend to just 5 cents per share, fully franked — a dramatic fall from the $1.80 paid out in 2023. Meanwhile, net borrowings rose to $2.77 billion by the end of 2024, up from $2.2 billion a year earlier, reflecting the financial strain on the company.
Silver Linings and Management Outlook
Despite the grim results, Ampol highlighted resilient performances from its Convenience Retail business and steady results from its New Zealand and Fuels & Infrastructure Australia divisions, even amid tough economic conditions.
CEO Matt Halliday acknowledged the challenges but expressed cautious optimism:
“The 2024 financial year was one of challenging global refining and commodity markets... but we are seeing green shoots of improved trading conditions, particularly in New Zealand, as interest rate cuts begin to take effect.”
The company also noted that the Lytton Refiner Margin (LRM) for January 2025 rose to US$6.31 per barrel, an improvement from December, though still below historical averages due to lagging crude premiums and freight cost compression.
What Lies Ahead for Ampol?
Ampol faces a difficult road ahead, with refinery performance and global commodity markets likely to dictate its near-term fate. Investors will be watching whether the LRM continues to improve and whether rate cuts in New Zealand can meaningfully lift the company's bottom line.
