Here’s why the Ampol (ASX:ALD) share price is struggling today

What’s weighing down Ampol shares? We take a look

| More on:
A man looks frustrated with head on hand as he fills up car at service station.

Image source: Getty Images

The Ampol Ltd (ASX: ALD) share price is treading slightly lower during afternoon trade on Thursday. This comes after the fuel retailer announced a potential issue of subordinated notes as well as a property transaction.

At the time of writing, Ampol shares are fetching $30.25 apiece, down 1.27%. For comparison, the S&P/ASX 200 Index (ASX: XJO) is relatively flat at 7,402, edging 0.04% higher.

Ampol commences bookbuild process

Investors are sending the Ampol share price lower following the company’s decision to offload some of its assets.

In its release, Ampol advised it has entered into an arrangement to sell 20 freehold convenience retail sites.

The non-binding heads of agreement will see the transfer of petrol stations to an unlisted property trust. Ampol will own a 51% interest, while Charter Hall will take up the remaining 49% stake.

The deal is expected to deliver Ampol around $48 million in net proceeds, subject to binding commitments.

Once the transaction is completed, Ampol plans to begin leasing the sites under long-term triple net lease arrangements.

In addition, the company confirmed it has commenced a bookbuild process to issue subordinated notes in the wholesale fixed income market.

It intends to use the funds acquired from the sales and notes issue to help fund the purchase of Z Energy Ltd (ASX: ZEL). Furthermore, any monies left over will be allocated to general corporate purposes.

The property transaction is expected to be finalised sometime in the first quarter of 2022.

Ampol share price snapshot

Over the past 12 months, the Ampol share price has fallen by around 3%. Year-to-date, its shares have traversed the other way, up 6% for the period.

Based on today’s price, Ampol commands a market capitalisation of roughly $7.19 billion, and has approximately 238.30 million shares outstanding.

Should you invest $1,000 in Ampol right now?

Before you consider Ampol, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Ampol wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Energy Shares

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the 30% increase in Pure Hydrogen's share price today
Energy Shares

Why the Pure Hydrogen (ASX:PH2) share price is rocketing 30% today

Key points Pure Hydrogen stock is soaring on the ASX today The company has entered a joint venture in India …

Read more »

An oil miner with his thumbs up.
Energy Shares

Why are AGL (ASX:AGL) shares having such a stellar start to 2022 while the ASX 200 is struggling?

Key points AGL was one of the worst performing ASX 200 shares of 2021 But 2022 has given this company …

Read more »

a smiling woman holds up two fingers and winks.
Share Gainers

Top 2 ASX 200 shares of the year so far revealed

S&P/ASX 200 Index (ASX: XJO) shares as a whole haven’t gotten off to the strongest of starts in 2022. After …

Read more »

A man in suit and tie is smug about his suitcase bursting with cash.
Energy Shares

Is Santos (ASX:STO) about to enjoy a $3 billion payday?

Owners of Santos Ltd (ASX: STO) shares might want to keep an eye on the company’s Papua New Guinea assets …

Read more »

Businessman walks through exit door signalling resignation
Energy Shares

Woodside (ASX:WPL) share price slightly retraces following Myanmar withdrawal

Key Points Woodside shares remain in positive territory amid management decision to end investment in Myanmar Political unrest along with …

Read more »

oil can falling over and spilling coins signifying fall in oil share prices
Energy Shares

Why are ASX 200 energy shares tumbling on Tuesday?

Key points The ASX 200 energy shares make up the worst performing sector on Tuesday They’re likely being weighed down …

Read more »

A miner in visibility gear and hard hat looks seriously at an iPad device in a field where oil mining equipment is visible in the background.
Earnings Results

Beach Energy (ASX:BPT) share price tumbles 7% on production slide

Key points The Beach Energy share price is under pressure Production levels fell quarter on quarter Higher oil prices helped …

Read more »

Two miners standing together with a smile on their faces.
Resources Shares

Two top ASX 200 mining shares to watch in 2022: Saxo Markets

Key points These 2 ASX 200 miners have trounced the index in 2022 A strong outlook for iron ore could …

Read more »