Unexpected breakdown at Ampol's Brisbane oil refinery leads to slide in half-year core net profit

Company News

by Glenn Dyer

Ampol (ASX:ALD), following an unforeseen breakdown at its Brisbane oil refinery, has reported a 26% decrease in core net profit for the first half of the year ending in June.

The net operating profit, excluding one-off events, which is closely observed by analysts, plummeted from $447.7 million in the first half of 2022 to $329.9 million.

CEO Matt Halliday deemed the result "strong," highlighting the company's progress in reducing its reliance on domestic fuel supplies. He stated, "During this period, the full potential of our integrated supply chain was evident. Despite changing market conditions and a refinery outage, the team delivered a satisfactory performance. Additionally, the ongoing improvements in Convenience Retail were notably impressive."

Total sales volumes surged by 25% compared to the Covid-impacted first half of 2022, reaching 14.4 billion liters.

In response to these developments, Ampol has reduced its interim dividend to 95 cents per share, down from $1.20 in the previous year. Nevertheless, the company affirms that the reduced payout still represents 69% of earnings.

Ampol indicated in mid-July that the outage had been resolved, and the Lytton refinery in Brisbane is once again operational.

Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

Subscribe to our Daily Newsletter?

Would you like to receive our daily news to your inbox?