Ampol’s profit jumps as drivers hit the road

Ampol’s first-quarter net profit jumped 54 per cent as drivers returned to the roads and its Lytton Refinery in Brisbane staged a turnaround.

Staff of the Ampol Lytton Refinery with Scott Morrison last year. Picture: NCA NewsWire / John Gass

Ampol’s first-quarter net profit jumped 54 per cent as drivers returned to the roads and its Lytton Refinery in Brisbane staged a turnaround.

Net profit on a replacement cost basis – which strips out the impact of oil prices on its stockpiles – rose to $113m, from $73m, with the Lytton plant posting earnings of $60m after a slim loss for the same period a year ago.

The Lytton performance drove a 44 per cent increase in group earnings on a replacement-cost basis to $189m, while earnings from its network of 1900 service stations were steady at $77m.

“Ampol delivered a strong first-quarter result during a period of turbulent operating conditions,” the company’s chief executive, Matt Halliday, said.

“This again demonstrates the quality and resilience of the Ampol integrated supply chain. The business has successfully managed the short-term impacts of Omicron, significant flooding events and the unprecedented volatility caused by the Russia and Ukraine conflict.”

Ampol is among companies that have emerged from a torrid pandemic that belted fuel demand sideways with a focus on boosting its scale as it looks to grab a big market position across the Tasman in New Zealand.

Its $1.9bn bet to create a trans-Tasman fuels giant through buying Z Energy is expected to complete on May 10, with Ampol to list on the New Zealand exchange in mid-May while maintaining its primary ASX listing.

Z Energy owns 300 petrol stations and supplies 4 billion litres of fuel annually to customers.

Markets had remained volatile in April and May, Ampol noted. That was largely due to lower Chinese refined product exports and the impact of Russian sanctions, it said. Ampol shares closed 1.6 per cent lower at $32.30.