Ampol Profit Surges as Middle East Disruption Boosts Refining Margins

Ampol Profit Surges as Middle East Disruption Boosts Refining Margins

Charles Kennedy

Mon, August 24, 2026 at 5:27 AM GMT+3 4 min read

• ALD.AX +1.54%

Australian fuel supplier Ampol reported a sharp increase in first-half 2026 earnings, benefiting from higher refining margins and trading opportunities created by disruption to global oil and refined-product flows.

Replacement Cost Operating Profit EBITDA, excluding significant items, climbed 152% from a year earlier to A$1.64 billion for the six months ended June 30, while RCOP net profit attributable to shareholders rose to A$857.2 million from A$180.2 million. Statutory net profit reached A$1.36 billion, compared with a A$25.3 million loss in the first half of 2025.

The biggest earnings improvement came from Ampol's Fuels and Infrastructure division, where RCOP EBIT jumped to A$1.13 billion from A$118.3 million a year earlier.

The Lytton refinery accounted for much of that increase. RCOP EBIT at the Queensland facility rose to A$533.4 million from just A$1.1 million, as Middle East supply disruptions tightened global refining capacity and pushed product cracks higher. Ampol's Lytton Refiner Margin averaged US$28.26 per barrel during the half, while refinery production increased 8.7%.

Ampol said its broader supply, shipping and trading operations also benefited from the volatile market. Australian Fuels and Infrastructure operations excluding Lytton generated RCOP EBIT of A$309.3 million, up 123%, while international Fuels and Infrastructure contributed A$307.5 million compared with A$2.8 million a year earlier.

The results underline the earnings sensitivity of refiners and fuel suppliers to disruptions in global petroleum trade. Ampol said continuing uncertainty around Middle East shipping routes, including the Strait of Hormuz and Bab-el-Mandeb, remained supportive of regional refining margins. Russian diesel export delays and historically low refined-product inventories were also adding pressure to global supply.

Those conditions continued after the reporting period. Ampol's Lytton Refiner Margin reached US$27.11 per barrel in July, with refinery production of 524 million liters. The company said July earnings were ahead of the same period last year, although Lytton began a scheduled turnaround on July 30 and is expected to restart during October.

Convenience Retail also improved, with RCOP EBIT rising 12% to A$204.5 million. Fuel volumes increased 2.4%, while underlying shop sales excluding tobacco and conversions to its U-GO discount format rose 3.5%.

Ampol completed its acquisition of EG Australia at the end of the half, expanding its retail network and increasing the contribution of retail and commercial sales to group earnings. The company expects annual synergies of A$65 million to A$80 million within two years of completion, with benefits beginning to flow through results in fiscal 2027.

Performance was weaker in New Zealand, where RCOP EBIT excluding exited businesses fell 16% to A$103.8 million. Ampol said rapidly rising wholesale fuel costs took longer to pass through to customers, temporarily pressuring margins and contributing to a 2.5% decline in fuel volumes.

The company is also expanding its electric-vehicle charging business. Its AmpCharge network reached 356 charging bays in Australia during the half, while Z Energy operated 217 charging bays across 63 New Zealand sites. Energy Solutions narrowed its RCOP EBIT loss to A$15.6 million from A$24.1 million and remains targeted to reach a breakeven exit run-rate in 2028.

Ampol declared a fully franked interim dividend of A$1.85 per share, more than four times the prior-year interim payout.

Net borrowings increased to A$3.52 billion at June 30 from A$2.90 billion at the end of 2025, partly reflecting A$1.17 billion used to settle the EG Australia acquisition.

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com

Oilprice Intelligence brings you the signals before they become front-page news. This is the same expert analysis read by veteran traders and political advisors. Get it free, twice a week, and you'll always know why the market is moving before everyone else.

You get the geopolitical intelligence, the hidden inventory data, and the market whispers that move billions - and we'll send you $389 in premium energy intelligence, on us, just for subscribing. Join 400,000+ readers today. Get access immediately by clicking here.