Ampol reported a 25 per cent fall in net profit to $549.1 million for the year to December 31 as energy markets continue to be roiled by geopolitical events.

The fuels and infrastructure division was not directly impacted by risks associated with navigating the Red Sea, the company said in a statement to the ASX.

But more recently freight rates have escalated as geopolitical tensions flared, particularly for product freight, and this trend is likely to be “positive” for Ampol’s Lytton refinery and the integrated supply chain, the company said.

With the recent finalisation of the new fuel standards by the federal government, Ampol said it intends to upgrade the refinery with a final investment decision expected in the coming weeks.

The Lytton refinery in Queensland will produce gasoline compliant with the new specifications for both regular and premium grades, with the project expected to be commissioned in the second half of 2025.

Ampol said it would continue to extend and improve its convenience retail footprint in Australia and New Zealand, which would form the “cornerstone” of an on-the-go charging network.

Managing director Matt Halliday said the take-up of electric vehicles (EVs) was modest but encouraging, with Australia still at the beginning of the rollout compared to other countries.

The future energy division began the rollout of the AmpCharge EV charging network in 2023, with 82 charging bays at 36 sites in Australia, delivered with the support of government grants.

The network is expected to extend to 300 charging bays in Australia and 150 charging bays in New Zealand by the end of 2024 to provide Ampol with the flexibility to adapt to the evolving energy transition.

“We continue to explore other low carbon transport solutions including renewable fuels,” the company added.

Underpinned by earnings growth from servos and New Zealand acquisition Z Energy, the full-year group replacement cost operating profit (RCOP) earnings before interest and tax (EBIT) rose 2.2 per cent to $1.3 billion.

The convenience retail division continued to perform strongly with RCOP EBIT earnings up 2.1 per cent to a record $354.6 million, as improved fuel margins offset falling tobacco sales and higher electricity costs.

The rebranding of 50 MetroGo stores to Foodary has boosted earnings, Pheasants Nest in NSW has opened and the M1 northbound flagship site refresh is also complete, Ampol said.

Shares in Ampol rose 1.5 per cent or 56 cents to $38.16 in morning trade as investors welcomed a special dividend.

The company declared a final ordinary dividend of 120 cents per share and a special dividend of 60 cents per share, taking total dividends to 275 cents per share for the year, fully franked.