Ampol’s Convenience Retail business has delivered a solid start to the year, reporting mid-single digit EBIT growth for the first quarter of 2025, despite a 4.9 per cent fall in fuel volumes compared to the same period last year.
Ampol attributed the result to strong fuel margins and effective in-store execution. Store margin expansion played a key role, helping offset declines in tobacco sales.
Across the Tasman, New Zealand operations mirrored the Australian convenience uplift, also achieving mid-single digit EBIT growth. Improved fuel volumes and non-fuel income contributed, with the company noting the success of Z Energy’s store refresh and its value offer via Pak’nSave.
Elsewhere, Ampol noted broadly steady performance in its Fuels and Infrastructure Australia segment, while international markets remained challenging. The company also flagged ongoing cost reductions, targeting $50 million in savings for 2025.
Ampol recently divested its holdings in New Zealand’s Channel Infrastructure, generating approximately $85 million and strengthening its balance sheet.
Looking ahead, lower fuel prices are tipped to modestly lift fuel volumes and margins, with Ampol also potentially qualifying for government support under the Fuel Security Services Payment program due to weak global refining margins.
Refinery output was slightly impacted by Cyclone Alfred, with Lytton Refinery’s production down 5.7 per cent to 1,303 million litres for the quarter.
“Should refiner margins remain at current levels, we expect downside protection through the fuel security mechanism,” the company stated.
To stay up to date on the latest industry headlines, sign up to the C&I e-newsletter.