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Ampol Ltd (ASX:ALD), a key player in the energy sector listed on the S&P/ASX 200 Index (ASX:XJO), has shown significant gains in today's trading session. With shares closing at $37.59 on Friday, the petroleum refiner and fuel distributor has seen a notable uptick, reaching $38.03 per share in morning trading on Monday, marking a 1.17% increase. This positive movement stands out against the broader ASX 200, which has seen a modest 0.2% rise during the same period. ASX energy stocks, including Ampol Ltd, are closely monitored for their performance and market movements amid shifts in energy demand and supply dynamics.
The surge in Ampol's share price follows the release of its full-year 2023 results, revealing several key highlights:
- Earnings Growth: Earnings before interest and tax (EBIT), excluding significant items, saw a 2% increase to $1.30 billion compared to the previous year.
- Net Profit: Statutory net profit after tax (NPAT) amounted to $549 million, reflecting a 25% decrease year-on-year.
- Financial Position: Net borrowings decreased to $2.20 billion as of 31 December, down from $2.46 billion in the previous year, with leverage at 1.6 times and committed facilities of $5.0 billion.
- Dividend Declaration: Ampol declared a final fully franked dividend of $1.20 per share along with a special dividend of 60 cents per share, resulting in a record final payout of $1.80 per share, up by 16% from 2022.
Driving Ampol's performance in 2023 was growth in its non-refining divisions and the full-year contribution from Z Energy, which it acquired in mid-2022. Z Energy contributed EBIT of $264 million to group earnings, meeting the expected acquisition benefits and synergies. Moreover, Ampol achieved record total sales volumes of 28.4 billion litres, marking a 17% increase year-on-year.
CEO Matt Halliday emphasized the company's adaptability and resilience in response to rapidly changing energy markets. He highlighted the strong balance sheet, which enables Ampol to invest in core fuels and convenience businesses while delivering high dividends to shareholders.
Looking ahead, Ampol plans to upgrade its Lytton refinery to produce gasoline compliant with new fuel specifications and expand its EV charging network in Australia and New Zealand.
Over the past 12 months, the Ampol share price has risen by 18%, excluding the $2.75 per share in dividends distributed during the year.
