Australian fuel supplier Ampol has reported its highest-ever full-year profits after sanctions on Russian oil products and a rebound in global demand pushed prices and sales earnings higher.
Ampol, the nation’s largest supplier of gasoline, diesel and aviation fuel, said Monday its 2022 net income rose 42 percent to $795 million, while its preferred underlying earnings metric rose 124 percent to $1.3 billion. Dollar has risen, which has allowed it to significantly increase shareholder returns.
Stockholders will receive a final dividend of $1.05 per declared share, as well as a special dividend of 50¢ per share, the company said.
“These results were supported by strong operational performance and dedication from the entire Ampol team, who have continued to deliver for our customers while responding to the challenges caused by rebalancing global energy markets, extreme weather events and COVID outbreaks” said general manager Matt said Halliday.
Profit margins from the processing of crude oil into fuels for transportation at Ampol’s Lytton refinery in Brisbane were well above the historical annual average of $17.86 per barrel, compared to $7.50 a year ago.
As Western nations continue to escalate economic sanctions against Russian energy products to deprive Moscow of the revenue it needs to fund the war in Ukraine, oil and fuel prices have skyrocketed around the world.
Halliday said it’s been a strong start to 2023 for the oil refiner, with margins climbing above $18 a barrel and fuel volumes and sales up.
“Geopolitical factors, including Russian sanctions and Chinese product export decisions, are likely to continue to impact crude oil and refining markets in 2023, and over the medium term, supply and demand fundamentals continue to support a tight refined products market,” Halliday said.
UBS analyst Joseph Wong said on Monday Ampol’s earnings were in line with expectations, while the solid growth and special dividend should be well received by the market.
https://www.smh.com.au/business/companies/fuel-giant-ampol-posts-record-full-year-profit-lifts-dividends-20230220-p5clum.html?ref=rss&utm_medium=rss&utm_source=rss_business Ampol posts record full-year profit and increases dividend