Ampol Views Future With Confidence

Press, Volume CVIII, Issue 31579, 17 January 1968, Page 18

Ampol Views Future With Confidence

(N.Z. Press association— Copyright) SYDNEY, January 16. A substantial increase is expected in the earnings of Ampol Petroleum, Ltd, during the year to September 30, the directors say in their annual report for the year to September 30.

Results for the year, they say, should cover adequately a steady 10 per cent dividend and leave a reasonable portion of earnings in the business. In the year to September 30 last, the company lifted net profit from $5.04m to $6.75m after a reduction in the provision for current and future tax from $80,370 to $30,075. On dividend, ranking ordinary capital increased from $33.4m to $54.7m by the conversion of notes and first payments on deferred shares. The earning rate fell from 14.5 to 12.1 per cent Profit Lift Full ranking of shares from the note issue will lift divi-dent-ranking ordinary capital to $58.76m. To maintain a

12.1 per cent earning rate on this, profit for the year would have to rise to $7.23m after tax. To earn 14.5 per cent on capital as in 1985-66, profit would have to reach $8.64m after tax. Discussing the tax position, the directors say the company will continue to receive benefits from refinery investments and from the new shares taken up in Ampol Exploration, 63.9 per cent owned. However, they have decided to provide for tax from the beginning of 1967-68. The directors say the motor spirit market has regained normal growth with a 6.5 per cent expansion during the year. The growth rate was 2.6 per cent in 1965-66 and 7.7 per' cent in 1964-65.