S&P/ASX 200 Index (ASX: XJO) energy share Ampol Ltd (ASX: ALD) is seeking direction today.
Shares in the Aussie fuel supplier closed yesterday at $23.88. At the time of writing in morning trade on Thursday, shares are swapping hands for $23.90, up 0.1%. In earlier trade, shares were up as much as 2.4% and down by more than 1.0%.
For some context, the ASX 200 is up 0.8% at this same time.
Here's what's happening.
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ASX 200 energy share wobbles on divestment news
The Ampol share price has edged into the green after the ASX 200 energy share reported that its wholly owned subsidiary Z Energy has entered into an agreement to sell its entire shareholding in Channel Infrastructure NZ Ltd (NZE: CHI).
Ampol said it regularly reviews its assets and shareholdings to maintain an efficient capital structure. The divestment of Channel Infrastructure, representing approximately 12.67% of the company's issued capital, is part of this regular review.
Ampol expects net proceeds from the sale of approximately NZ$95 million (AU$87.2 million). The funds will be directed towards debt reduction.
At its full-year 2024 results, the ASX 200 energy share reported net borrowings of $2.77 billion at 31 December 2024, up from $2.20 billion of net borrowings at 31 December 2023.
Management said the sale of Ampol's shareholding won't impact the long-term commercial arrangements between Z Energy and Channel Infrastructure in relation to the Marsden Point Terminal.
Commenting on the divestment, Ampol chief financial officer Greg Barnes said:
Ampol and Z Energy remain committed to Aotearoa New Zealand and our customers operating there. We will continue to work closely with Channel Infrastructure to ensure that fuel is safely and reliably supplied to our customers.
What's been happening with Ampol shares?
Despite today's small bump higher, the Ampol share price remains down 39% since this time last year.
Commenting on the performance of the ASX 200 energy share in 2024 following the company's results release, Ampol CEO Matt Halliday said, "The 2024 financial year was one of challenging global refining and commodity markets that impacted both our Lytton refinery and Trading and Shipping operations".
The challenging conditions led to a 32% year-on-year decline in replacement cost operating profit (RCOP) earnings before interest, taxes, depreciation and amortisation (EBITDA), which came in at $1.2 billion.
RCOP net profit after tax (NPAT) of $235 million was down 68% from 2023.
But 2024 wasn't all doom and gloom for the ASX 200 energy share.
According to Halliday:
Our retail businesses were the highlight with Convenience Retail growing earnings again this year, while Z Energy delivered another resilient performance, both against the backdrop of economic environments where higher interest rates and inflation increased cost of living pressures on consumers.
