SYDNEY, August 24, 2026, 10:10 AEST – Ampol has declared a dividend of A$1.85 per share on the back of record profit, giving investors a 4.6% cash yield.
- Ampol reported a record underlying profit of A$857.2 million for the first half, an increase of 376%.
- The interim dividend of A$1.85 represents 4.64% of the closing share price from Friday.
- Refining led the increase, even as overall fuel volumes declined by 1.2%.
- The consensus analyst target implies only a 3.1% gain from the closing price before the results.
Ampol Limited ASX:ALD reported a near fivefold increase in underlying profit for the first half and announced a record interim dividend of A$1.85 on Monday. Based on Friday’s closing share price of A$39.85, the dividend alone equates to a 4.64% cash yield.
Trading on the Australian market was proceeding as normal. A transaction involving Ampol following its results could not be confirmed from available quoted feeds at the time of writing, so all price references are based on the August 21 closing figure at 16:10 AEST.
The dividend stands out as the most immediate backing for the stock. However, the outcome also highlights Ampol’s dependence on particularly robust refining margins. Main fuel volumes declined, and analysts’ consensus price target remained just slightly higher than the level before the results were released.
Underlying replacement-cost after-tax profit stood at A$857.2 million, surpassing the A$840 million consensus forecast from Visible Alpha by roughly 2%. Statutory profit was elevated, as an inventory gain of A$527.6 million after tax was driven by higher oil prices.
| Group measure | 1H26 | 1H25 | Change |
|---|---|---|---|
| RCOP EBITDA | A$1,637.1m | A$648.9m | up 152% |
| RCOP EBIT | A$1,391.7m | A$403.8m | increase of 245% |
| Underlying RCOP NPAT | A$857.2m | A$180.2m | up 376% |
| Statutory NPAT | A$1,363.4m | A$25.3m loss | Returned to profit |
| Interim dividend | A$1.85 | A$0.40 | increase of 363% |
The Fuels and Infrastructure segment accounted for the majority of the increase, with EBIT surging 859% to A$1.13 billion. Lytton’s refining margin jumped to US$28.26 per barrel from US$7.44 amid tighter product markets caused by regional supply disruptions.
| Operating driver | 1H26 | 1H25 | Change |
|---|---|---|---|
| Fuels & Infrastructure EBIT | A$1,134.5m | A$118.3m | +859% |
| Convenience Retail EBIT | A$204.5m | A$182.7m | +12% |
| New Zealand EBIT | A$103.8m | A$128.8m | -19% |
| Lytton refiner margin | US$28.26/bbl | US$7.44/bbl | +280% |
| Total fuel sales | 12.30bn litres | 12.45bn litres | -1.2% |
The fuel blend is significant. Diesel and jet fuel together make up over 70% of Ampol’s fuel volumes, with jet fuel accounting for more than 10% of total sales. Overall volumes dropped, even as wholesale and convenience-retail demand grew in Australia. In New Zealand, volumes decreased by 2.5%.
The retail division provided more stability. Convenience Retail EBIT climbed 12% on a 2.4% rise in volumes. Ampol finalised its acquisition of EG Australia on June 30, which was too late to contribute to first-half earnings.
The purchase increases Ampol’s company-operated network to approximately 1,080 locations. Management aims for annual synergies of A$65 million to A$80 million within two years. Around 125 sites may be converted to the U-GO discount format.
| Capital and outlook measure | Latest figure | Investor read-through |
|---|---|---|
| Operating cash flow | A$1.25bn | Supports dividends and investment spending |
| Net borrowings | A$3.52bn | Rose following EG acquisition |
| Adjusted leverage | 1.8x | Remains inside guidance |
| 2026 net capex | About A$600m | Set to decline in 2027 |
| EG annual synergies | A$65m-A$80m | Aimed for delivery in two years |
Cash generation remained robust, reaching A$1.25 billion. However, net borrowings increased to A$3.52 billion following acquisition expenditures. Adjusted leverage was recorded at 1.8 times trailing RCOP EBITDA.
The dividend amounts to A$441 million, representing 51% of the underlying profit. It is fully franked. The 4.64% yield refers to a single payment, not an annualised rate.
| Analyst view | Count / value | Versus A$39.85 close |
|---|---|---|
| Buy | 6 | 67% of analysts |
| Hold | 2 | 22% |
| Sell | 1 | 11% |
| Average target | A$41.08 | +3.1% |
| Target range | A$32.00-A$49.25 | -19.7% to +23.6% |
The analyst consensus is favourable, though valuation remains conservative. Out of nine analysts, six recommend buying Ampol. Their average price target of A$41.08 signals just a 3.1% increase from Friday’s closing price of A$39.85, based on the consensus before results.
Operations continue to show strength. In July, the Lytton margin stood at US$27.11 a barrel. Management reported that activity in the second half began more robustly than in the same period last year. Maintenance work on the refinery’s catalytic cracker began on July 30, with a restart planned for October.
Ampol CEO Matt Halliday stated the company prioritised “keeping Australia and New Zealand moving” during the latest supply interruption. His remarks highlight the importance of the firm’s logistics network amid tightening regional fuel supplies. Management statement
Risks: Refining margins may decline rapidly if disrupted capacity resumes. Lytton’s maintenance programme restricts output in the near term. Increased debt, challenges integrating acquisitions, and lower demand in New Zealand may decrease available cash for upcoming dividends.
The investment thesis is notably straightforward. Ampol is distributing a significant portion of surplus funds as margins stay high. The A$1.85 payout is clear, but the sustainability of the profits supporting it is less certain.
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