Ampol to pay huge dividend to shareholders as profits leap

Surging fuel prices due to US President Donald Trump’s war with Iran has led to bumper profits for Australia’s largest petrol retailer.

In its latest market update, Ampol noted net profit on a replacement cost operating – which is used by investors as it excludes the impact of oil prices on inventories – leapt to $857.2m in the six months until June 30.

This was more than four and half times last year’s recorded profit of $180.2m.

The company said it will pay out the money to shareholders, with interim dividends of $1.85, which is nearly four times higher compared with this time last year.

Ampol managing director and chief executive Matt Halliday said first half profits were marked by the Middle East conflict with Australia and New Zealand not immune to global energy prices.

“While the market dislocation provided a benefit to our financial results, our supply responsiveness, trading capabilities, refinery reliability, customer and supplier relationships as well as the progress of our retail segmentation strategy all enabled Ampol to meet its customers’ needs,” Mr Halliday said.

“In short, the underlying business performance improved across multiple segments as Ampol’s supply chain remained resilient, when less robust supply chains faltered.”

Oil prices have fluctuated wildly since the start of the year due to the war in the Middle East.

In January, prior to the conflict beginning oil hit a low point of $US56 ($A78) a barrel.

But it quickly soared to more than $US130 ($A181) a barrel in April – the highest level since the 2022 energy crisis.

Motorists in Australia were spared some of the pain at the fuel pump due to reducing the tax excise and returning the GST windfall to drivers.

This cut initially took 32 cents off each litre of petrol, before it was dropped to 16c in July.

From Sunday August 1, the government completely reinstated the fuel tax excise.

According to AMP, every $US10 a barrel increase in fuel costs motorists about 10 cents per barrel.