Ampol has reported its unaudited results for the first half of 2024, with growth in convenience retail despite tough economic conditions.
The company expects to report a profit of approximately $500-510 million and total earnings of around $735-745 million for this period.
One of the standout segments for Ampol was convenience retail and its New Zealand business, both of which saw profit increases. This growth in convenience retail was largely driven by the sale of premium fuels, highlighting the strength and quality of Ampol’s retail network and market positioning, while shop income was broadly consistent with the previous year.
In New Zealand, the company benefited from its efficient supply chain and diversified sales channels, contributing to higher earnings.
In Australia, the fuel and infrastructure (F&I) operations maintained consistent profits compared to the first half of 2023. However, the international segment experienced a decline in profits due to less favourable trading conditions, particularly in the second quarter of 2024, which reduced short-term sales opportunities and margins.
Ampol’s Lytton Refiner Margin (LRM) for the second quarter of the 2024 financial year was US$8.81 per barrel. This figure reflects the impact of lower product cracks during the quarter and a short-term lag between the pricing of crude oil and its consumption in production, typically around two months.
The second quarter LRM of 2024 compares favourably to the US$5.66 per barrel recorded in the same quarter last year, which was affected by an unplanned outage of the Fluidised Catalytic Cracking Unit. Despite a decrease in total refinery production to 1,420 million litres compared to the same period last year, the production included a higher proportion of high-value products, totalling 1,366 million litres, up from 1,229 million litres.
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