The Ampol Ltd (ASX: ALD) share price dropped lower today, down 2.46% to $27.50 at the time of writing. This came after the company released its half year report to 30 June 2020.
How did Ampol fare in FY20?
Ampol reported revenue of $8.05 billion in the half year to 30 June 2020, a 22% drop compared to the same period in 2019.
The transport fuels company had net profit after tax (NPAT) on a historical cost of sales basis of -$626 million. This compared to NPAT of $155 million in the half year to 30 June 2019. The company said the result reflected a $434 million inventory cost, and $312 million in significant items including asset impairments of sites impacted by the coronavirus pandemic.
The group had earnings before interest and tax (EBIT) of $221 million, a drop from $255 million in 2019. Ampol said this was supported by convenience retail RCOP EBIT, which was up 47% compared to the prior period, although fuel and infrastructure RCOP EBIT dropped compared to the first half of 2019.
Ampol reported the business was impacted by COVID-19, with Australian volumes down 14% compared to the first half of 2019. The company had net borrowings of $1.23 billion at 30 June 2020. This compares to $1.26 billion at 30 June 2019.
The company declared an interim dividend of 25 cents to be paid in October 2020. The dividend will be fully franked.
Moving forward, Ampol said focus remained on addressing the cost base and optimising value across the integrated supply chain, to deliver strong financial returns across both fuel and infrastructure and convenience retailing businesses.
About the Ampol share price
Ampol is a transport fuels company which operates with two divisions, fuel and infrastructure and convenience retailing. Ampol has various fuel infrastructure assets along with more than 800 retail stores, making it Australia's number one transport fuels company. Previously known as Caltex, the company has a history dating back to 1900.
Earlier this month, Ampol announced that it would sell a 49% stake in 203 of its freehold sites. The deal is expected to free up $612 million in capital.
The Ampol share price is up 53.44% since its 52-week low of $18.32. However, it is down 17.35% since the beginning of the year. The Ampol share price has returned 8.74% since this time last year.
