How Is Ampol Powering Growth with EV Charging and Renewable Fuels in 1H 2025?

Solid Financial Performance Despite Challenges

Ampol Limited has released its half year results for the period ending 30 June 2025, reporting a Group Replacement Cost Operating Profit (RCOP) EBITDA of $649 million and an RCOP EBIT of $404 million. While the statutory net profit after tax (NPAT) showed a loss of $25 million, this reflects ongoing investments and one-off impacts such as Cyclone Alfred, which caused refinery disruptions and associated costs.

The company’s total sales volume reached 12.45 billion litres, with the Convenience Retail and New Zealand segments showing notable earnings growth despite economic headwinds. Fuels and Infrastructure (F&I) Australia maintained stable earnings, while international operations hovered around breakeven.

Strategic Priorities Driving Growth

Ampol is advancing several key strategic initiatives, including the near completion of its Ultra Low Sulfur Fuels (ULSF) project, which aims to introduce 10ppm gasoline by late 2025. This move is expected to enhance fuel quality and command a premium in the market.

The company is also progressing its acquisition of EG Group Australia, a $1.1 billion deal pending regulatory approval, which will significantly expand Ampol’s company-owned and operated (COCO) retail network and accelerate its segmented retail strategy. This acquisition is projected to deliver high single-digit EPS accretion and double-digit free cash flow per share accretion, with synergies expected by the second full year post-completion.

Energy Transition and Innovation

In line with evolving market dynamics, Ampol is expanding its electric vehicle (EV) charging infrastructure, now operating 180 bays across 69 sites in Australia and 184 bays across 56 sites in New Zealand. The company launched the AmpolCard for EV charging in July 2025, streamlining payment solutions for business customers.

Renewable fuels remain a core focus, with Ampol delivering Australia’s largest commercial Sustainable Aviation Fuel (SAF) import in partnership with Qantas and Sydney Airport. The company is also exploring integrated renewable fuels production, including a potential Brisbane Renewable Fuels project, supported by government grants.

Balance Sheet and Capital Management

Ampol’s balance sheet remains robust with net borrowings of $2.8 billion and a leverage ratio of 2.8 times on an adjusted net debt to EBITDA basis. The company declared a fully franked interim dividend of 40 cents per share, reflecting a payout ratio of 53% of RCOP NPAT, signaling confidence in its cash flow generation and capital allocation discipline.

Capital expenditure for 2025 is forecast at approximately $600 million, including investments in the Lytton refinery’s ULSF project, highway retail sites, and refinery turnaround activities. Productivity programs have delivered $30 million in savings in the first half, targeting $50 million for the full year.

Outlook and Market Position

Looking ahead, Ampol expects continued momentum in its core businesses, with improving refining margins supported by regional supply-demand dynamics and the transition to cleaner fuels. The company remains engaged with the Australian Government on the Fuel Security Services Payment, which underpins refinery economics.

Geopolitical uncertainties and market volatility are acknowledged as ongoing risks, but Ampol’s integrated supply chain and diversified earnings mix position it well to navigate these challenges. The company’s focus on customer-led energy transition initiatives, including EV charging and renewable fuels, aligns with broader industry trends and regulatory expectations.