January 28, 2026 [Reuters]- Australia’s top fuel retailer Ampol forecast stronger full-year earnings on Wednesday, supported by solid gains in its domestic convenience retail arm and New Zealand operations, while also reporting higher sequential quarterly output.

The New South Wales-headquartered firm expects its replacement-cost earnings before interest and taxes (EBIT) to be around A$945 million ($662.35 million) for fiscal year 2025, up from A$715.2 million a year earlier. Full-year earnings before interest, taxes, depreciation, and amortization (EBITDA) are expected to reach nearly A$1,435 million.

Convenience retail volumes slipped to 889 million litres (ML) in the fourth quarter from 864 ML a quarter earlier, while New Zealand volumes dipped to 984 ML from 901 ML.

Refining margins at its Lytton refinery rose to $15.14 per barrel, from $10.64 per barrel, in the previous quarter, reflecting stronger diesel-type fuel margins as refinery outages and new Russian sanctions tightened supply.

Global diesel prices and refining margins had jumped after Washington unveiled tough sanctions on Russia’s oil trade, stoking expectations of tighter fuel supplies.

Refinery output for the three months ended December 31 climbed to 1,558 ML, up from 1,252 ML in the September quarter, capitalising on favourable margin conditions.

However, the group reported total sales volumes of 6,699 ML, down 11% from a year earlier.

The stock slipped 4.09% to A$29.09, as of 0112 GMT, while the benchmark index was largely flat.

Global demand for oil products is being pressured as supply exceeds demand and the transition toward renewables accelerates, leading markets to expect revenue contraction across the sector this year, said Jessica Amir, a market strategist at online trading platform Moomoo.

Investors are rotating out of energy stocks facing structural headwinds and into sectors with stronger tailwinds, such as metals benefiting from artificial intelligence-driven infrastructure demand, Amir added.