Ampol dividend 5.5 c after profit rise

Press, Volume CXV, Issue 34012, 28 November 1975, Page 16

Ampol dividend 5.5 c after profit rise

(N.Z.P. A.'Reuter—Copyright) SYDNEY. Ampol Petroleum, Ltd, has reported an unaudited group net profit of $40,954,000 for the year to September 30, but because the company has decided to equity account two associated companies, and also adopt tax effect accouting, the result is not comparable with the previous years.

If the changes are excluded from the latest years’ result the net profit would be $9,443,000, compared with the $8,044,000 net profit of 1973-74, which is an increase of 17.5 per cent. By adopting equity

accounting Ampol has increased its net profit by $1,113,000, and by applying tax effect accounting the net profit was increased by $398,000. The operating profit before tax and depreciation was 6.0 per cent higher at $28.2m. The chairman (Mr W. M. Leonard) said he was very pleased with the result.

The profit was after providing $1,295,000 less at $6.5m for tax, but $103,000 more at sll.lm for depreciation. The Ampol board was giving consideration to the revaluation of the Lytton refinery, near Brisbane. Last year’s balance sheet shows the book value of the refinery at $18,272,000. Deducting the likely depreciation provision for 1974-75 the book value of the refinery at September 30 is likely to be around $16,445,000.

The current value of the refinery could now exceed sloom. This was not based on replacement-cost, but the directors do not discuss how the figure was assessed. Again using last year’s balance sheet, a revaluation of the refinery to sloom would mean a lift in the revaluation reserve from $20.5m to around slosm. This in turn would cause a jump in shareholders’ funds from $112.9m to $196.4m. Unless profits increased at a similar rate in 1975-76 the company would record a substantial drop in the return on shareholders’ funds. The board is recommending a final dividend of 3c a share, payable on February 18 to shareholders registered with the company by January 21. The final dividend raises the payout for the year to 5.5 c a "share compared with 5c a share last year.