The Ampol Ltd (ASX: ALD) share price is charging higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) petroleum refiner and fuel distributor closed yesterday trading for $29.84. In morning trade on Wednesday, shares are changing hands for $31.57, up 5.8%.
This comes following the release of the company’s unaudited financial results and performance update for the first half of the 2023 financial year (H1 FY23).
Here are the highlights.
What are ASX 200 investors considering today?
The Ampol share price is leaping higher after the company reported unaudited replacement cost operating profit (RCOP) earnings before interest and tax (EBIT) in H1 FY23 of approximately $575 million.
RCOP earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at approximately $800 million.
Ampol said the results reflect strong earnings growth from its non-refining divisions compared to the first half of the 2022 financial year.
The company highlighted double-digit year on year growth in RCOP EBIT in its Fuels and Infrastructure segments (ex-Lytton). It said this reflects improved margins, increased volumes as well as “incremental margin in managing the supply imbalances as a result of the refinery outage”.
Convenience Retailing earnings also grew, while overall earnings benefited from a full six months contribution from Z Energy. Ampol reported the business performed strongly, despite the extreme weather events in Q1.
The Ampol share price looks to be getting a lift on reports that total group fuel sales over the half-year increased by 24%. International fuel sales increased 8% while Australian fuel sales increased 13%.
Unaudited RCOP EBIT at its Lytton refinery was approximately $100 million, with RCOP EBITDA of approximately $131 million. Among other headwinds, this figure reflects the “lower Singapore product cracks” in Q2 and higher operating expenses.
The Lytton Refiner Margin (LRM) for the second quarter of the 2023 financial year was US$5.66 per barrel.
Ampol share price snapshot
With this morning’s intraday lift factored in, the Ampol share price is up 12% so far in 2023.
