Australian motorists petrol and fuel company Ampol [ASX:ALD] has presented its full-year results for FY2022, touting a record of full-year earnings of $1.32 billion — a surging increase of 124% on the prior year.
Ampol’s share price had risen 2% in the early afternoon on Monday, each share worth around $32.37 at the time of writing.
Year to date, the fuel company’s stock has increased by 14% and has risen 3.5% higher over the year.
Source: tradingview.com
Ampol delivers record earnings and dividends
For FY2022, the petroleum and fuel retail group posted earnings (EBIT) of $1.32 billion, including $1.27 billion from continuing operations that did not use any contributions from the Gull segment.
Statutory NPAT (net profit after tax) increased by 42% compared to 2021, totalling $795.9 million.
Ampol says it was the best convenience retail earnings in five years, far surpassing its previous record year (2015). The group’s retail sales have increased by 37% from 2021 alone.
ALD noted there had been 28% growth in earnings for fuels and infrastructure on a constant basis and celebrated that Z Energy’s performance was in line with its investments and synergies that had been previously mapped out.
Eight months of trading with newly acquired Z Energy meant there was a bonus contribution of $124.6 million RCOP (replacement cost operating profit) EBIT to the Ampol group result, after purchase price accounting adjustments, and on the 2.76 billion litres of total fuel sales volume.
The group has managed to deliver its non-fuel earnings to an uplifted target two years earlier than initially predicted.
Matt Halliday, ALD’s CEO, stated:
‘2022 has been another very successful year for Ampol as the integrated supply chain combined to deliver a record financial result and supported the declaration of record shareholder dividends.
‘At the same time, we are continuing to deliver on our strategic priorities. The rebrand to Ampol is now complete, we have achieved the Convenience Retail non-fuel RCOP EBIT uplift target ahead of schedule and the acquisition of Z Energy has delivered on our international growth ambitions. We remain disciplined with our allocation of capital, prioritising shareholder returns as we strive to get the balance right between core business optimisation and targeted investment in the energy transition to meet the evolving needs of our customers.’
In celebrating the year’s triumphant record earnings, Ampol’s board declared a final ordinary dividend of $1.05 a share, up from the 41 cents reported the year before.
The group’s full-year ordinary dividends came to 225 per share, fully franked, representing a 70% payout ratio for the entire year.
Ampol also declared a special dividend of 50 cents for each share held.
The petroleum retailer achieved a new record for annual earnings just as soaring oil prices have swamped the Australian economy, which should not be too much of a surprise for Australians who have been suffering at the hands of rocketing fuel prices for months.
Ampol expects continuing tightness on crude and refined product markets in 2023, thanks to continuing geopolitical factors concerning Russia and Chinese export limitations.
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