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Investing.com -- Ampol Limited (ASX:ALD) expects to report first-half 2025 EBITDA of approximately $640 million and EBIT of approximately $400 million, the company announced in a trading update on Wednesday.
The earnings guidance is generally in line with market expectations at the EBITDA level but about 2% ahead of consensus for EBIT, excluding outliers.
Ampol’s Convenience Retail division saw earnings growth despite fuel volumes declining 4.3% year-over-year in the second quarter, an improvement from the 4.9% decline in the first quarter.
The growth was primarily driven by favorable premium fuel mix.
Shop income remained flat compared to the previous corresponding period, with tobacco continuing to be a headwind for shop sales, though it represents less than 20-25% of shop sales and an even smaller percentage of gross profit.
The company expanded its unmanned U-GO sites to 34 by the end of the first half.
The New Zealand business experienced modest earnings growth, with retail margins remaining healthy despite weaker sea-freight conditions partially offsetting benefits from Ampol’s integrated supply chain.
Management indicated that freight headwinds have eased in the second half. Fuel volumes in New Zealand grew 0.5% in the second quarter, slowing from 3.2% growth in the first quarter.
Fuels and Infrastructure Australia earnings were broadly flat year-over-year, with volumes declining 3.3% in the second quarter, while Fuels and Infrastructure International operated at breakeven levels due to limited physical opportunities.
The Lytton refinery reported a second-quarter Lytton Refiner Margin of US$8.71 per barrel, higher than the first quarter’s US$6.07 per barrel, which was impacted by Cyclone Alfred.
Management indicated Lytton was profitable in the second quarter, though first-half EBIT was around breakeven due to first-quarter losses.
Jefferies maintained its Buy rating on Ampol with a price target of AUD31.50, up from AUD31.00 previously, representing a 13% upside from the current price of AUD28.00.
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