Australia transport energy distributor and retailer Ampol has posted a record full year operating profit of A$1.3 billion for the year ended December 31, 2022 – up 124%.
The replacement cost operating profit (RCOP) before interest and tax includes A$1269.0 million from continuing operations (which excludes Gull contribution), says Ampol.
It’s statutory net profit after tax (NPAT) of A$795.9m is a 42% increase on 2021 and Ampol also reported its best convenience retail earnings in five years, up 37% on 2021.
“2022 has been another very successful year for Ampol as the integrated supply chain combined to deliver a record financial result and supported the declaration of record shareholder dividends,” says managing director and chief executive Matt Halliday.
“At the same time, we are continuing to deliver on our strategic priorities.
“The rebrand to Ampol is now complete, we have achieved the Convenience Retail non-fuel RCOP EBIT uplift target ahead of schedule and the acquisition of Z Energy has delivered on our international growth ambitions,” he adds.
“We remain disciplined with our allocation of capital, prioritising shareholder returns as we strive to get the balance right between core business optimisation and targeted investment in the energy transition to meet the evolving needs of our customers.
“These outcomes were supported by strong operational performances and the dedication of the entire Ampol team who have continued to deliver for our customers while responding to the challenges caused by the rebalancing of global energy markets, extreme weather events and COVID outbreaks.”
Eight months of trading from Z Energy post acquisition contributed A$124.6 million RCOP EBIT to the Ampol Group result, after Purchase Price Accounting adjustments, and 2.76 billion litres of total fuel sales volume.
Since the closure of New Zealand’s only refinery, Z Energy has made good progress in managing the transition to a full import model with minimal disruption to customers.
The exit from the National Inventory Agreement saw Z Energy gain share in the New Zealand market as it benefited from its superior infrastructure position.
The management team continued to progress the synergies and performance improvements outlined at the time of acquisition. To date NZ$22 million of synergies have been delivered in 2022 for an annualised run rate of NZ$55 million.
Ampol has reached a final settlement with the Australian Taxation Office (ATO) in relation to the Australian corporate tax treatment of earnings by Ampol’s Singaporean entities (Ampol Singapore) from transactions with Ampol’s Australian entities (Ampol Australia).
The settlement relates to the financial years ended December 31, 2014-22 after Ampol first approached the ATO in 2014 in relation to its operations in Singapore. As a result of the settlement, Ampol will pay a further A$5.6 million in tax on earnings between 2014 and 2021, in addition to the A$104.1m already paid in relation to these matters.
In June 2023, Ampol will pay A$48.2 million in tax on earnings in the 2022 financial year in relation to these matters, in line with normal tax payment dates. No penalties have been imposed on Ampol.
As a result of the settlement, a write-back of excess tax provisions totalling A$110.2m has been included as a reduction in tax expense in the 2022 full year results and further recognised as a Significant Item.
From January 1, 2023 the majority of Ampol Singapore earnings from transactions with Ampol Australia will be subject to corporate income tax at an overall rate of 30%.
Additional information has been provided in a separate release lodged with the Australian Securities Exchange and New Zealand’s Exchange.
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