Why Ampol (ASX:ALD) clocked record first-half earnings

Highlights

• Ampol’s first-half statutory net profit after tax stood at AU$695.9 million.

• The total sales volumes for the period rose to 11.5 billion litres.

• Ampol’s net borrowings on 30 June 2022 stood at AU$2,976 million.

Ampol Ltd (ASX:ALD) on Monday announced record first-half earnings on strong regional refiner margins. The Australian petroleum firm reported a statutory net profit after tax (NPAT) of AU$695.9 million for the six months ending 30 June 2022, a rise of 114% on the prior corresponding period.

Ampol registered a group replacement cost operating profit (RCOP) EBIT of AU$734.1 million, including AU$693.1 million from continuing operations. The total sales volumes for the period rose to 11.5 billion litres.

Meanwhile, the company said that its net borrowings on 30 June 2022 stood at AU$2,976 million, against AU$724 million on 31 December 2021. The rise in borrowings was mainly due to the acquisition of Z Energy in May this year and a rise in working capital.

Dividend

The board of the ASX-listed oil & gas firm also declared a fully franked interim dividend of AU$1.20 per share. The dividend was more than double the previous year’s interim dividend and represents a 29 % rise in the total dividend for FY21. The interim dividend’s record and payment dates are 5 September and 28 September, respectively.

Ampol management’s commentary

Ampol’s management was upbeat about strong results reported by the company despite challenges posed due to market volatility and the COVID-19 pandemic.

 “Against the backdrop of increased market volatility due to the global energy shock, COVID-19 outbreaks, and extreme weather, Ampol has delivered the strongest half year Replacement Cost Operating Profit in its history. This result demonstrates the benefits of Ampol’s integrated supply chain,” said Ampol’s Managing Director and CEO Matt Halliday.

“Ampol team members have supported their communities and customers during some of the most challenging weather conditions we have experienced, keeping critical supply chains open. This commitment to delivering for our customers reflects the strength of the culture we are building at Ampol,” he added.

Ampol’s share price snapshot

Ampol’s share price has risen nearly 14% on a year-to-date (YTD) basis. In the past 12 months, the share price has surged over 30%. The past-month gains stand at nearly 5%. The stock has gained nearly 14% in the past six months and over 1% in the past five days. The stock’s 52-week high and low stand at AU$37.55 and AU$25.76, respectively.