Ampol Posts $649M EBITDA, Eyes $80M Synergies from EG Australia Acquisition

Strong Financial Performance Amid Market Dynamics

Ampol Limited has delivered a robust financial performance for the first half of 2025, reporting a Replacement Cost Operating Profit (RCOP) EBITDA of $649 million and EBIT of $404 million. Despite a statutory net loss after tax of $25 million, the company’s operational metrics signal resilience in a challenging energy market. Total sales volume reached 12.45 billion litres, underscoring Ampol’s significant presence in the Australian and New Zealand transport fuels sector.

Notably, the Lytton Refinery Margin (LRM) strengthened markedly in the latter part of the year, climbing from US$13.78 per barrel in October to US$17.90 per barrel in November. This improvement reflects tighter global refinery supply conditions, compounded by geopolitical factors such as additional sanctions on Russian oil exports. Ampol capitalised on these favourable market conditions by increasing refinery production to 532 million litres in November.

Strategic Expansion Through EG Australia Acquisition

Ampol is advancing its acquisition of EG Group Australia, a move set to significantly expand its company-owned, company-operated (COCO) retail network along Australia’s east coast. The transaction, expected to complete by mid-2026 pending regulatory approval, is projected to deliver $65-80 million in predominantly cost-related synergies by the second full year post-completion. This acquisition aligns with Ampol’s strategy to grow its retail convenience offering and accelerate segmented retail initiatives, including the rollout of its value-oriented U-GO brand.

EG Australia’s network complements Ampol’s existing footprint, with approximately 500 sites and a strong market presence. The integration is anticipated to enhance customer experience, operational efficiency, and supply chain benefits, further strengthening Ampol’s position in the competitive fuels and convenience retail market.

Driving Productivity and Innovation

In parallel with expansion efforts, Ampol is focused on improving operational efficiency through a productivity program targeting $50 million in nominal cost reductions for the full year 2025. This initiative underscores the company’s commitment to disciplined capital allocation and maintaining a strong investment-grade credit rating (Baa1 by Moody’s).

The company is also evolving its energy offer to customers by enhancing premium site formats and innovating through its Foodary convenience food brand. The U-GO rollout, which offers a streamlined, unstaffed fuel retail experience, has demonstrated promising results with a 50% uplift in fuel volumes at converted sites and an average site EBITDA improvement of $300,000 per annum.

Positioning for the Energy Transition

Ampol’s strategy includes building foundations for the energy transition, focusing on electric vehicle (EV) charging infrastructure and renewable fuels. The company has exited electricity retailing to concentrate resources on these core areas. Its integrated fuel supply chain and strategic assets, including the Lytton refinery, provide a platform to navigate the evolving energy landscape while ensuring fuel security for the region.

Looking ahead, Ampol’s clear capital allocation framework balances growth investments with shareholder returns, targeting a net debt to EBITDA ratio within 2.0x to 2.5x. The company’s prudent financial management and strategic acquisitions position it well to capture growth opportunities while managing market volatility.