Ampol's Share Price Can Rise on Raft of Good News

Dow Jones
Aug 24

2352 GMT - Shares of fuel refiner and marketer Ampol should trade well today, says Jefferies. That's because Ampol's 1H result was even better than its initial announcement at end-July. Ampol reported Ebit of A$1.39 billion, above the A$1.35 billion signaled weeks earlier. Analyst Michael Simotas says an interim dividend of A$1.85/share is better than expected. He also likes double-digit Convenience Retail Ebit growth in 1H and persistent strength in refining. "Recent retail fuel margin weakness called out by Ampol is readily observable from market data and we agree with management that it's temporary," Jefferies says. Key questions for investors include whether there has been a structural lift in wholesale margins and the outlook for shareholder distributions, it says. Ampol ended last week at A$39.85.

 

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