2026 annual general meeting of Ampol Limited. My name is Steven Gregg. It's an honor inviting Mr. Ron West to the stage for an acknowledgment of country. Welcome, Ron.
Part of the Ampol team for over two decades. It's a privilege to stand before you today. Before we begin. I also proudly carry the strength and spirit of my own people, the Wiradjuri mob. I extend my respect to recognize the history, culture, and continuing contribution of our First Nations communities. Thank you.
Online via the MUFG online platform. Shareholders and proxy holders joining through the MUFG online platform also have the ability to ask que-- Online attendees, please note that only shareholders and proxy holders can submit questions via the on-- Specific resolution for your question. Click in the question section and type your question and click on-- Honor and address all questions. In the interest of limited time we have, we may choose to merge-- Video question, click on the Go To Webphone button and type in your name and hit the green Ca-- Post these responses on our website. Voting today will be conducted by way of a poll on all-- Via the online platform, you can cast your direct vote using the electronic voting card that you received.
Ability to change your vote up to until the time that I declare the voting is closed. If you're attending the meeting in person, you would have been given an attendance card when you registered. Blue card, you are a non-voting shareholder. While you are entitled to ask questions and make comments to an MUFG share registry team member. If anyone with a yellow or blue card. Via the web phone after I've taken questions from the floor. I now declare voting open. CEO Matt Halliday. Matthew will soon join me on the stage. Also joining me in the room today, we also have our General Counsel and Company Secretary, Faith Taylor, and Company Secretary, Yvonne Chong. Significant contribution to the development and organization on the board since 2017. Helen Nash succeeds Melinda as Chair of the People and Culture Committee.
Helen has been a member of the. Given Melinda's retirement, we are acutely aware of the gender balance of the board and have. Before we move to the formal items of business, I will briefly reflect on our performance in 2020. Drivers of the 2025 result and our trading performance year to date. Convenience retail and Z Energy businesses operating at close to historic best levels. Management processes. Our commitment is to ensure every team member goes home safely every day. A safe environmental risk is managed and our operations run as intended. By geopolitical volatility, challenging economic conditions, and the impact of Cyclone Alfred disruption. Group earnings improved materially on the prior year.
Group RCOP AUD 429 million, excluding significant items, up more than 80% on the prior. Down approximately 33%. This was largely driven by one-off significant items, including. Ratio of RCOP NPAT, excluding significant items and reflecting our commitment to shareholder. As we navigate the current period of heightened geopolitical uncertainty and disruption. Matt will. We are Australia's own fuel company with the capability of independently sourcing, refining, and. Agriculture, defense, emergency services, and regional communities in both. Safe and reliable supply remains a strategic priority for the board. Lytton is one of only government confidence that fuel can continue to reach customers and regional communities during periods of disruption. The FSSP. Phase one of the FSSP review has now been commenced, has continued to work with us to enable ongoing investment in an essential national asset.
The events of the last few months have reinforced just how critical that role is in Australia, of the pressures on our customers at this time and the economy more generally. Ampol's [ind-] has enabled the company to continue supplying Australia and New Zealand, including to regional areas. I want to reiterate, the board is carefully monitoring the situation and supporting management during. It aligns with our core capabilities, enhances scale and resilience. On the energy transition side, the board remains pragmatic in its approach. While we're deliberate choices, including to ensure capital is allocated to opportunities that align with our capabilities and to require partnership between industry and government and management continue to engage constructively with both in the energy transition, with electric vehicle uptake increasing across Australia and New Zealand. customer demand and disciplined capital management.
Looking ahead, the board remains confident in Ampol's strategy. I'd like to thank Matt, the entire Ampol leadership team, and all our people for their commitment and resilience.
Their resilience and dedication has meant that Ampol can continue to supply our customers. As the chairman outlined, I'll run through the operational drivers of our From an operational perspective, our 2025 results reflect disciplined execution across the business. Strong financial results were Ampol's newly refreshed company values, move as one, make it happen. Second half following difficult conditions in 2024. Decisions taken of approximately 5.5 billion liters despite Cyclone Alfred and planned maintenance. Volumes growth of about 4%, driven by convenience retail, fuels and infrastructure, and Z Energy and our continued segmentation strategy. We have continued to reduce our exposure validate our segmentation strategy.
In New Zealand, Z continued to deliver. Also in New Zealand, the sale of our Channel Infrastructure shareholding and the Flick Energy. We're targeting a further AUD 50 million through 2026 and 2027. Mandatory reporting standards. Turning now to first quarter performance in New Zealand and reinforced the importance of secure and reliable fuel supply as compared to $6.07 per barrel in the prior corresponding period. Strong financial performance continued in April, particularly at the Lytton refinery. Trade volume was also solid for the month of April as the team focused on optimizing refinery production and global supply dislocation during April to deliver another outstanding performance. Also solid for the month of April as the team continued to focus on operating safely and reli, which also contributed to strong earnings from the trading and shipping operations, as I just mentioned.
refinery during this period of dislocation. A domestic refining capability preserves both. Over the past three years alone, Ampol has invested more than AUD 1 billion at Lytton to meet compliance. requires policy settings that support returns over the long term and fuel security for our customers and communities. In the meantime, the taking practical measures to support initiatives to bolster supply, including in areas that have been especially tight in the western and supporting targeted MSO releases to regional areas to help secure additional fuel supply into both countries respectively. These. As the Chairman noted, this is a compelling opportunity for Ampol, our customers. Accelerate the rollout of our value-oriented U-Go offer that is performing well and that resonates strongly. The ACCC process continues, with Ampol having now lodged a final remedy decision from the ACCC next month.
Onto the ultra-low sulfur fuels project investment outcomes to support fuel security for Australia during the current challenging phase. manufactured fuel to be sold in Australia during a period of tight supply, which helps to demonstrate. I'd like to thank our people for their dedication and our shareholders for their continued trust. I'll now hand.
To ask questions about each resolution later in the meeting before going to the voting outcomes of each resolution, if we have any. I would like to invite questions on the general business from the room.
Don Adams.
Yeah.
Thank you. I'm Don Adams from the Australian Shareholders' Association. AUD 10 million to investigate expanded refinery capacity in Australia. Also, is it better to be importing crude or refined product?
Thanks, Don, for the is worked through. I think it's safe to say that Ampol has been at the forefront of discussions with government. Matt needs to the country, also on this minimum storage obligations that they've had and fuel security going forward. We understand fully, the government comes up with a hard set view on how that will work. I think there is a refinery built on the country. It'll probably take three or four years of feasibility studies. I'd hate to think how many billion dollars. We will hopefully manage our refinery well, I think that's probably where that will end.
One of the things that Ampol does exceptionally well, and we are the only people who can do it from an Australian perspective, is fantastic job, but it is an ongoing dialogue with government on all those issues.
I noted that the statutory earnings per share dropped last year. I thought it was sort of a bit interesting that sustainability noting what you've said about improving reliability and so.
Being taken below the line and is or above the line, sorry, as a result of the statutory profit put out in the market.
Results which showed inventory loss after tax of AUD 134 point.
Of profitability. It's a function really of inventory gains and losses. It's a very complex environment to import. That's about, yeah.
It's differences in sort of dollars. Noting that since the conflict in the Middle East out, you know, the refinery does produce other fuels such as saving on the demand for those fuels.
Yeah, look, I'll let Matt talk to that in a minute, but I think it's just as a general observation put in their budget, they're gonna take out the rebate for EV sales of a certain value. Again, that'll probably be a hit to it. Probably if anything, but it's something we've got to invest in the future. It will come, but I think what this crisis safe, secure, cost-effective way today, but having to also invest for the future. We look. As there are no further questions in the room, we will now go to the online platform. Are there any questions from that platform, please?
Every 10 years and mandatory audit changes every 20 years. Do we have a similar of mandatory audit tenders?
Right
every 10 years?
Yep.
Mandatory audit changes?
We don't have that policy. We tend to, you know, review it regularly, but From KPMG is in the audience, and Cameron's been conducting the audit now for three years.
On notice.
Right
I'll read the question. It says, "Thanks," the question comes again from [Tile Director], "Could Melinda comment on what she regards as best two decisions Ampol." Be seeking a fifth term on the board when his current term expires in 2028.
Seeking a fifth term, but you never know.
Okay. As fund managers and institutional investors after each six monthly results release, respect for your retail shareholders, could you please disclose the headcount data with today's-
Thank you. Look, we engage heavily with our shareholder base following. Retail shareholders to engage directly with the company also.
That's good. Thank you very much. As we have no further questions, we are now gonna move to the formal items open. I intend to cast the votes in favor of each resolution. The first item of business relates to the financial report, sustainability report, director's report, and the auditor's report for the online platform, and finally to the web phone.
Questions on the three reports.
Yep.
rather than each individually. That's okay. It was concerning re-electing, we're looking at improving the overall diversity and lived experience of board-
Yeah, absolutely, Tash, we're fully aware of that. I think what's very important on boards is to have diversity of opinion. If there are no further questions in the room, we'll go to the online platform. Are there any questions from the online platform, Jeff? I see we have no further questions on this item of business. We will now move on to the following matters to be voted on. The poll on each resolution will be displayed on the screen before we move to the next item of business. The remuneration report. The vote on this resolution is advisory.
We've already had commentary on how replacement cost net profit was up. Focusing on replacement cost profit for short-term incentive purposes means that management.
I think these two items, which comprise the bulk of the significant items this year, are quite unusual. I mean, see. On the electricity writedown, again, one of the things I don't want management to do is not make an impairment and a write-off of that business. If we don't give our management the right to go ahead and do things, then they won't try. Items of any scale. This was too big last year. I admit that. I felt that it really shouldn't have impacted. Jeff, any questions there, please?
There are no questions.
Thank you, Jeff. Any questions from the web phone, please? On your electronic voting card or your paper voting card. The proxy results for the Safety and Sustainability Committee and the Nomination Committee. He has over 40 years of commercial and governance ex- Chair of IAG New Zealand and a director of IAG Limited. He's a former trustee. Excuse me. Simon was also the inaugural chair of New Zealand Li-- New Zealand's last- Simon, now to speak to his re-election. Thank you.
As Steve said, of Ampol since September 2022, and am today seeking your re-election. Discussed, I was the chief executive of an investment bank in New Zealand which I set up for 21 years. Roles have spanned government entities, corporations, and charities, time and commitment to devote to Ampol. Thank you for the opportunity to offer myself.
Questions on this item from the floor, please, if there are any. No? Okay.
Doesn't he agree it works well at IAG and Ampol? Infrastructure in New Zealand. Doesn't he agree it works well at IAG? Sorry.
Yep, that's the appropriate answer. It's not really for Simon to comment on that. Phone? No? No?
Chair, no questions from the phone.
Thank you. As there are no further questions, proxy votes results now are on the screen. Well done, Simon. Overwhelming support. Ampol's MD and CEO under the Ampol Equity Incentive Plan do not require shareholder approval under the ASX listing rules. However, the board considers it appropriate to seek. Okay. There doesn't seem to be any questions from the floor, we'll move on. Thanks to the online-
Also for achieving strong voting support on all items, something that has Shareholders vote for and against this and all items. If you do this, you'll be at AGM.
Steven when I'm at Westpac, and, as we did last year in an extended fashion. Voting results. I'm very pleased with how we're doing it. I don't think we intend to change. Thank you. All right. Or your paper voting card. The proxy results for the votes are now on the screen. Thank you for all your participation in today's AGM. On behalf of the Ampol Limited board and management, I sincerely thank everyone here today and All safe and well. Thank you