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Why the Ampol (ASX:ALD) share price is climbing

The Ampol Limited (ASX: ALD) share price is climbing higher after providing unaudited quarterly financials to the market today.
The post Why the Ampol (ASX:ALD) share price is climbing appeared first on The Motley Fool Australia. –

A happy smiling kid points his fingers up, indicating a rising share price

The Ampol Ltd (ASX: ALD) share price is climbing higher this morning after providing unaudited financials for the quarter ended 31 March 2021 (Q1 2021). At the time of writing, the Ampol share price was trading for $25.43, up 4.22%.

Why is the Ampol share price worth watching?

Ampol reported higher earnings before interest and tax (EBIT) numbers across its 3 major segments. Australian Fuels & Infrastructure (F&I) ex Lytton EBIT came in at $59 million, up from $47 million in both Q4 2020 and Q1 2020.

International F&I EBIT increased to $26 million, up from $18 million last quarter and $24 million in the year prior. That represents an 11% increase on prior corresponding period (pcp) as higher prices offset lower volumes. Lytton EBIT recorded losses of $4 million and $18 million in Q4 2020 and Q1 2020, respectively.

The Ampol share price is one to watch in early trade following this morning’s update. Overall F&I EBIT climbed to $85 million from $61 million last quarter and $53 million last year while convenience retail EBIT edged lower came in at $78 million. 

Convenience retail shop performance remains strong despite the impact of snap lockdowns. Ampol reported a positive response to the Ampol rebrand with 109 sites rebranded at the end of March.

Ampol’s Corporate segment posted a $13 million EBIT loss, the same as Q4 2020 and less than the $15 million figure last quarter. Replacement cost of sales operating profit (RCOP) EBIT excluding significant items edged higher on the back of strong segment results.

The Ampol share price has jumped out of the blocks early this morning as strong earnings flowed through to the bottom line.

RCOP EBIT totalled $150 million for the quarter, up from $142 million in Q1 2020 and $122 million last quarter. Group Historic Cost Operating Profit (HCOP) net profit after tax totalled $175 million, up from $12 million in Q4 2020 and a $29 million loss in Q1 2020.

Foolish takeaway

The Ampol share price is climbing higher as investors react well to the latest numbers. Notably, crude oil prices continued to rebound last quarter as the recovery from the coronavirus pandemic continues. 

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Motley Fool contributor Ken Hall 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.

The post Why the Ampol (ASX:ALD) share price is climbing appeared first on The Motley Fool Australia.

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