Ampol takeover of Z Energy: Brisbane refinery a plus, CEO says (2024)

Z Energy's new owner says New Zealand will have greater fuel security as a result of its takeover.

Australian fuel retailer Ampol dual listed on the local stock exchange this morning, after finalising its acquisition of Z Energy for close to $2 billion last week.

Ampol chief executive Matt Halliday said local customers would not see many changes on the ground following the takeover, but they would benefit from better fuel security.

Critics have warned about the security of fuel supply following the transition of the Marsden Point oil refinery to an import-only terminal, ongoing supply chain disruptions and the Ukraine war.

But Halliday said the combined scale of both companies would strengthen the supply of oil imports because at any point in time it would have more ships on the water.

"Ampol still has a refinery in the group so there's the connection New Zealand has to a refinery that's still operating in Brisbane ... so I think that gives comfort, as well as the fact that we have roughly 80 people in our trading and shipping team in Singapore who are very connected to international markets and supply chains."

Low carbon future

Ampol's debut on the local stock exchanges comes the day after the government unveiled its first emissions reduction budget.

It included various policies to decarbonise large parts of the transport sector, such as incentivising the uptake of cleaner vehicles and increased investment in public transport and cycleways.

"I think it's a really exciting opportunity for Ampol and for Z, in terms of the role that we can play to enable a low carbon future for New Zealand and Australia," Halliday said.

He said the organisation's size meant it could support the rollout of more electric vehicle and hydrogen fuelling stations, as well as supporting the development of biofuels.

"We're energy distributors today; we'll be distributing different forms of energy in the future but repurposing our assets and using our capabilities to deliver for our customers.

He said as fuel use declines its profitability mix would change.

"But I actually see that there's a big opportunity for us to earn attractive returns on our privileged assets and capabilities in a similar way that we do today."

Investment partners wanted

Halliday said the company was also looking for an outside investor to help free up cash tied up in its network of service stations.

Z's previous leadership team had hinted at putting its valuable retail sites into a separate real estate investment entity, which might be fully or partially floated.

Halliday said it was looking to sell a 49 percent stake in the assets to "unlock some value".

"Z's been working on some opportunities in that regard for a while now, so we'll look to pursue those, but importantly [retain] strategic control of those assets."

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