Ampol Limited (ALD) Earnings Call Transcript & Summary

Good morning, and welcome, ladies and gentlemen. Welcome to the 2023 Annual General Meeting of Ampol Limited. My name is Steve Gregg, and it's an honor to be your Chairman. As a result of the proxies I hold as Chairman, we have a quorum present, so I declare this meeting open. In 2021, Ampol was proud to launch its second innovative reconciliation plan. In keeping with the commitments we have made, I'm delighted to welcome Craig Madden to join us this year for Welcome to Country. Craig?

Thank you very much, Steve. [Foreign Language] Good day, and welcome. My name is Craig Madden, and I'd like to start by thanking Ampol for inviting me today to welcome you on the country. I'm a proud Bundjulang/Gadigal man from the Eora Nation, and Gadigal land is the land on which we are standing here today. [Foreign Language]. This land is Gadigal. It is our customary for our Aboriginal people as we invite guests or visitors onto our land or country that we offer you safe passage as you pass through our lands. So as a proud Gadigal man, representing the Metropolitan Local Aboriginal Land Council, I'd like to welcome you all to Gadigal Land, Aboriginal Land. I'd like to pay my respects to elders past, present and emerging, and honor the stories and traditions of our Aboriginal people from this land. I'd also like to pay my respects to our ancestors as they watch over us as we walk upon these sacred lands. If we have any Aboriginal brothers and sisters, any brothers and sisters from the Torres Strait Islands, welcome. To our non-Aboriginal brothers and sisters here today, a warm and sincere welcome to Gadigal Land, Aboriginal Land. Our Gadigal clan is one of the many clans that make up the Eora Nation. It's a nation that's bound by 3 distinct landmarks. So we have the Hawkesbury River to the north, the Nepean River out to the west and the Georges River down to the south. And within the boundaries of those mighty rivers, our Eora Nation, the land of our Gadigal people, one of the 29 clans of that Nation. To our guests from across the seas, if you'll travel from across our great country today, great state, this magnificently beautiful city of yours, welcome. On behalf of the Metropolitan Aboriginal Land Council and our Gadigal mob, please, have a, I guess, wonderful AGM. And I must remember that under the asphalt and the dirt and the waterways of this beautiful country of ours, it always was and always will be Aboriginal Land. Thank you very much.

Thanks, Craig. Well spoken. Thank you. I'll now outline the technology and procedural matters for the meeting today. Today's meeting is being held both in person at The Mint in Sydney and online via the Link online platform. The Link online platform allows shareholders, proxyholders and guests to attend the meeting virtually. In addition to receiving votes and taking questions from the room here in Sydney, shareholders and proxyholders joining through Link also have the ability to ask questions and submit votes. There is also a teleconference number for shareholders and proxyholders to dial, listen and ask questions here today. Our virtual meeting online guide for today's meeting is available on the Ampol Investor Centre on the Ampol website. [Operator Instructions] Only shareholders and proxyholders can submit questions via the Link online platform at any time. [Operator Instructions] For questions online, Jeff Etherington, our Deputy CFO, who is here today with me, will read out the name of the shareholder and their question. We'll undertake best efforts to honor and address all questions. However, in the interest of the limited time we have, we may choose to merge some online questions together where there is a duplication in subject matter. If we do run out of time, we will look to provide direct responses to outstanding questions and post these responses on our website for all shareholders. Voting today will be conducted by way of a poll on all items of business. In order to provide you with enough time to vote, I will shortly open voting for all resolutions. For those shareholders participating in the meeting via the online platform, you can now cast your direct vote using the electronic voting card that you received when you validated the registration. If you have any questions about casting your vote online, please refer to the virtual online platform guide or call us on the numbers set out in the guide or on the screen in front of you. You do have the ability to change your vote up until the time I declare voting closed. If we experience any technical issues today, a short recess or an adjournment may be required depending on the number of shareholders being affected. If this occurs, I shall advise you accordingly. If you are attending the meeting in person, you would have been given an attendance card when you have registered on arrival. If you have a yellow voting card, you are a voting as a shareholder, proxyholder or corporate representative and will vote by filling out a paper voting card. You're also entitled to speak at this meeting. If you have a blue card, you are a nonvoting shareholder. While you're entitled to ask questions and make comments, you are not entitled to vote at the meeting. If you have a red card, you are a visitor and are not entitled to speak or vote at today's meeting. At the conclusion of the meeting, please return the completed paper voting card to a Link share registry team member. If anyone with a yellow or blue card wishes to speak, please put your hand up for the microphone at the appropriate time and identify yourself to me before asking the question. For those who are participating via our online platform, you will be able to submit questions by registering as a shareholder or proxyholder and selecting the Ask a Question tab. I will consider the questions submitted online and via telephone after I've taken questions from the floor. I now declare voting open on all items of business. For online attendees, please submit your votes at any time. I'll be giving you a warning before I move to close the voting. Let me start the meeting today, if I may, with some introductions. With me on the stage is our Chief Executive, Matt Halliday, who will be joining in a minute. Also joining me in the room today are Non-Exec Directors Penny Winn, Melinda Conrad, Mark Chellew, Gary Smith, Simon Allen, Mike Ihlein and Betsy Donaghey. Today, Melinda is seeking reelection, and Simon is seeking election, as Non-Exec Directors of Ampol. We also have our Company Secretary, Faith Taylor, here with us today. Members of the Ampol leadership team are in the room today. Representatives of our external auditor, KPMG, are also in attendance. Before we get to items of business, I would like to provide a review of the 2022 performance and then hand over to our Managing Director and CEO, Matt Halliday. Matt will provide an update on our key strategic initiatives from '22 and trading performance over the first quarter of '23. I'll now provide an overview of '22. '22 was a year of record operational and financial performance for Ampol. Despite the lingering effects of COVID-19, the impact of weather events on local supply chains and volatility in global energy markets, '22 was -- we delivered -- in '22, we delivered record earnings, record total fuel sales and record dividends for our shareholders. We made further progress delivering on our growth strategies in the Fuels & Infrastructure and in Convenience Retail. This included completing the acquisition of Z Energy in New Zealand in May '22, achieving strong growth in our international fuels business, and continued strong performance in Convenience Retail, growing earnings across both fuel and shop. We also completed the rebrand to Ampol and continue to take an important early steps in evolving the business through our future energy and decarbonization strategies. Our replacement cost operating profit, RCOP, EBITDA in '22 was a record $1.76 billion, and RCOP EBIT, a record $1.32 billion, up 124% on 2021. Total fuel sales across the year, including an 8-month contribution from Z Energy, were just over 24 billion liters, a 10% increase. These outcomes were supported by strong performance right across Ampol's integrated value chain in very volatile market conditions. Refining played an important role as there was a substantial increase in refined product margins, which rose to unprecedented levels in the second quarter and remained above historical averages throughout the year. In '22, international energy market volatility increased substantially given geopolitical tensions resulting from the Russia's invasion of Ukraine, increasing global prices and creating ongoing uncertainty in markets and supply chains. Ampol has not purchased any Russian crude oil or products since the conflict commenced. Over the last few years, Ampol has continued to expand its capabilities in global markets while investing domestically, including in our Lytton refinery, to ensure our integrated supply chain remains resilient. This investment and breadth of our expertise and infrastructure across our domestic and international operations set us apart from our competitors and positions us well to continue to navigate volatility and deliver supply security, while at the same time delivering very strong returns for our shareholders. It was pleasing to see that in the last 4 years, Ampol has delivered over $1.7 billion of tax-effective shareholder returns, including fully franked dividends and off-market buybacks. The company declared a $650 million fully franked dividends in '22, while maintaining an investment-grade balance sheet and significant ongoing liquidity and funding. Ampol is also a major provider of tax revenue to governments in Australia and New Zealand. In '22, across the Ampol family, we contributed over $7.5 billion in taxes, making our company a significant contributor to public revenues in both countries. In this regard, Ampol is very mindful of our position in the Australian community and economy and the role we play in the provision of safe and reliable energy to all Australians. Ampol treats is role in providing energy security seriously, and we welcome our partnerships with both state and federal governments to ensure this is maintained. Performance in safety and environment continues to be a major part of our drive for operational excellence. And it was pleasing to again deliver an improved performance across key safety and environment metrics in Convenience Retail, and Z Energy, which joined the Ampol Group in May of this year -- last year, also delivered a year of record performance. These improvements in our safety performance in retail have been achieved through continued strengthening of our safety culture and our strong focus on driving the right safety leadership and behaviors. In December '22, we also completed our Ampol rebrand, with the final sites in our network branding network transitioning. In just under 2 years, our over 1,800 retail locations have been rebranded despite the vast challenges created by COVID-19. This is an outstanding outcome and a testament to skill and dedication and hard work of our project team and supporting partners. The project is also an outcome which has been very well received by our customers and stakeholders. In May '22, we also completed a significant strategic milestone as we welcomed Z Energy, New Zealand's leading fuel and convenience business, into the Ampol family. The transaction positions Ampol as a trans-Tasman leader in our sector, with significant additional scale and the opportunity to share learnings and capabilities to deliver ongoing strong operational performance across both businesses. The acquisition of Z further builds on Ampol's international growth strategy through which we have continued to build our presence and scale across the region. This acquisition further strengthens Ampol's platform to continue our growth across the region, and good progress has already been made in integrating Z into Ampol. Importantly, the acquisition of Z complements our existing operations in Singapore and the Philippines, and provides Ampol with a significant competitive advantage in the Southeast Asian and Pacific markets. This focused international presence and expertise will create growth opportunities as we continue to work to leverage synergies from this important strategic milestone. As we execute our strategy, the Board remains focused on continuing to balance 4 priorities: investing to ensure strong and safe performance from our core businesses; utilizing our capabilities and strong market position to strategically grow the business; delivering ongoing strong shareholder returns; and fourthly, investing prudently in future energy to maximize the future value of Ampol's customer base and infrastructure strength. Our efforts to extend our customer value proposition to include alternative fuel options will continue to be executed with discipline to ensure we are delivering strong and sustainable returns for our shareholders over the long term, while in parallel evolving our business over that time. This will be a long journey, folks, and in one which we are very committed, recognizing the importance of taking some early steps and progressing partnerships to ensure the most efficient solutions are being delivered. We will continue to adjust the pace and focus of delivery as technology and policy evolves and to align with the take-up of new technologies. Ampol has proven its capabilities and resilience over the last 3 to 4 years, with our integrated operating model delivering ongoing strong performance and growth. The company is very strong and in a position to deliver in '23, with a well-structured balance sheet and a portfolio of outstanding businesses. While there remains uncertainty in the global and domestic economies, with the impact of inflation, rising interest rates and the ongoing volatility in global energy markets, Ampol has demonstrated its resilience across different market conditions. On behalf of the Board, I'd like to congratulate our CEO, Matt Halliday, and his executive team and all Ampol employees for achieving an outstanding result in '22, all delivered against the backdrop of an extremely challenging international environment and ongoing issues in the domestic economy. I'd also like to thank all our customers and stakeholders, including our suppliers and our joint venture partners, who remain vital to our continuing success. And lastly, and perhaps most importantly, I would like to thank you, the Ampol shareholders, for your continued support of this wonderful company and for coming on the exciting journey that we are creating. And I'll now hand you over to Matt to address the meeting. Thank you.

Thank you, Chairman, and good morning, everyone. It remains an honor to lead this great Australian company. I'm proud that in 2022, strong ongoing operational performance has allowed us to deliver exceptional outcomes for shareholders, customers, communities as we continued to successfully execute on our strategy. The core business delivered a record financial result, which supported record returns for our shareholders. These outcomes wouldn't have been possible without the dedication of the entire Ampol team who have responded well to the significant challenges of global energy markets' volatility, extreme weather events and COVID outbreaks to continue to deliver safely, reliably and efficiently for our customers. In 2022, there was strong performance right across our integrated value chain. Record earnings at Lytton, where the refiner margin for the year averaged USD 17.86 per barrel, was complemented by higher earnings in our international business, which continues to develop as a platform for further growth, and allowed us to deliver a significantly improved RCOP EBIT result in Fuels & Infrastructure. Convenience Retail also delivered very strong financial performance through improved earnings in both fuel and shop, despite the impact of higher fuel prices felt during the year. Record total fuel sales across the year were achieved as we continued to build on our strong track record of safe, reliable and efficient supply. Ampol has an important role to play in underpinning energy security in Australia and New Zealand, and indeed across the region more broadly, leveraging the skills of our people, our market-leading infrastructure and our integrated supply chain. We know this is essential for our customers, and these capabilities really came to the fore in 2022 as challenges emerged in fuel supply chains right across the globe. Strong progress was also made against our operational and strategic priorities. The rebrand to Ampol is now complete, with the milestone reached in just under 2 years. Our customers and stakeholders and employees have all responded really positively to the return of Ampol as an iconic Australian brand that Australians know and love. We also achieved our nonfuel RCOP EBIT uplift target in our Convenience Retail business ahead of schedule. The performance of retail fuels has also improved significantly over the same period, and together with strong performance in our shop, have combined to deliver much stronger levels of profitability. When coupled with the strong improvement in safety performance, I think these results highlight a business that has developed strong capability and is now very well positioned to continue to pursue disciplined growth over the coming years. We also completed the acquisition of Z Energy in New Zealand, as Steven just mentioned. Like Australia, in 2022, the New Zealand market was negatively impacted by high fuel prices and COVID in the initial months following acquisition. But Z delivered strong performance through the second half of 2022. In 2023, we continue to deliver on the synergies from the transaction, including now increasing supply to the Z business through our established trading and shipping team. This will drive improved value outcomes for Ampol and its shareholders and also strengthen fuel security in New Zealand. We remain disciplined with our allocation of capital, prioritizing shareholder returns as we strive to get the balance right between core business optimization, ongoing growth, including in the international business, and targeted investment in the energy transition in order to meet the evolving needs of our customers. In 2022, there were also several important milestones in sustainability, including the ongoing delivery of our future energy and decarbonization strategies and our broader work in community and diversity and inclusion. Highlights include the development of in-house modeling capabilities to model the various impacts of climate change scenarios on the transport sector, along with delivering a physical climate risk assessment to understand the potential impacts of changing weather conditions on our assets and our infrastructure. From a reporting, strategy and governance perspective, we integrated our sustainability report into our annual reporting suite in 2022, a move which underlines our commitment to transparency and to ongoing improvement across our key sustainability measures. This work will now be augmented later this year by the release of our first climate report, detailing progress with the delivery of our future energy and decarbonization strategies, which were launched back in May 2021. I was also pleased to recently launch our refreshed sustainability strategy, which outlines our key areas of focus and details our plans to meet our 2025 sustainability targets. We have identified 5 areas aligned to the United Nations Sustainable Development Goals where we feel we can have the biggest impact. These are well-being and inclusive workplaces, indigenous partnerships, supporting communities and nature, circular economy and decarbonization. Ampol continued to invest in the energy transition in 2022, consistent with our plans communicated at the start of the year. Our efforts to extend our customer value proposition will continue to be tested with discipline to ensure we are delivering strong and sustainable returns for our shareholders over the long term, while in parallel evolving our business over time and, importantly, alongside our customers. The future energy team actually achieved several important milestones over the last year, including launching AmpCharge, our electric vehicle charging solution, and the installation of the first 5 pilot sites as part of a co-funding agreement with the Australian Renewable Energy Agency. We also finalized an agreement with the New South Wales government to deliver a further 19 fast-charging sites and over 110 charging bays across key areas of New South Wales. And that includes over 50 bays at 8 at-destination sites, which are actually outside of our retail network. In total, our initial commitment is to deliver more than 100 fast-charging sites and over 300 fast-charging bays in Australia as we work collaboratively with governments on co-funding solutions to leverage our infrastructure network strength to deliver e-mobility solutions that our customers are looking for. In 2022, we also made strong progress putting community at the very heart of Ampol strategy. Overall, community contributions in Australia increased by 29% last year to $4.1 million, which included raising over $1 million for our Ampol Foundation charity partners through our retail network and the generous support of our customers. This was complemented by strong employee participation in our workplace giving program, Fueling Change, with funds raised reaching almost $300,000 through that program. In New Zealand, Z Energy also continued to contribute to a wide range of community organizations and initiatives through its Good in the Hood program. We also continued to progress our objectives in diversity and inclusion and maintained our strong employee culture as demonstrated in our third consecutive annual culture survey. This included the launch of our second Innovate Reconciliation Action Plan as we continue our journey to support better opportunities for Aboriginal and Torres Strait Islander peoples across employment, procurement, cultural awareness and community engagement. Ampol is also committed to developing its people and its leaders. And I was very pleased that all 3 changes to our Ampol leadership team that were made in 2022 recognized the talent that exists within Ampol. Kate Thomson was promoted to the role of Executive General Manager, Retail Australia; Faith Taylor was promoted to Executive General Manager, Group, General Counsel, Regulation and Company Secretary; and Lindis Jones was appointed Executive General Manager, Z Energy. And with these leadership changes, female representation on the ALT is now very close to 40%. Finally, over the last year, we have continued our work to respond to the overflow of our wastewater treatment plant at our Kurnell terminal following a 1-in-100-year rain event that occurred in April last year. Ampol accepted responsibility for the event, which resulted in the release of water-containing hydrocarbons into the local community, and we apologized to the residents of Kurnell. We undertook and completed an investigation, undertook clean-up works and presented our key findings back to the community. Actions have also been taken to improve operations to prevent recurrence, and further work is underway to deliver additional improvements in wastewater management at the facility. We have also implemented a range of initiatives to strengthen our community engagement and communication, and we remain committed to driving positive outcomes for the residents of Kurnell. In 2023, we are continuing to focus on strong operational and commercial performance in order to continue delivering for our shareholders. Late last month, we updated the market on trading conditions and operational performance for the first quarter of this year. The unaudited group RCOP EBIT for the first quarter was $345.4 million, and that was up 82% on the prior corresponding period, representing Ampol's second strongest quarterly result in its history and reflecting continued strong performance across all areas of the business. Refined product markets remain strong, with the refiner margin for the first quarter of 2023 reaching USD 14.90 per barrel. And refinery production for the quarter was 1,490 million liters with only a marginal impact from the temporary outage of the fluidized catalytic cracking unit, which will largely impact second quarter results, with our repairs to the unit on schedule and the unit now back up and operating. In the broader Fuels & Infrastructure business, fuel sales volumes grew by 14% compared to the prior corresponding period, with growth across petrol, diesel and jet fuel due to increased mobility post COVID, the return of net migration to Australia and the ongoing recovery of the aviation sector. International sales volume for the quarter were also strong, increasing by 56% due largely to the benefit of the timing of spot sales to third-party customers. Convenience Retail also had a successful quarter as customers continued to respond very positively to the Ampol brand. Headline retail fuel sales volumes increased by 2.8% or 5.4% on a like-for-like basis. And average retail fuel margins also improved. The shop also continued to perform well, with shop sales up 0.8% on a like-for-like basis and further improvements seen in shop gross margin, reflecting the ongoing benefits from the strong execution of the retail shop strategy. 2023 will be the first full year of contribution from Z Energy. And during the first quarter, New Zealand was impacted by extreme weather events with heavy flooding in Auckland during January, which was then followed by the impacts of Cyclone Gabrielle on the east coast of the North Island. Z then saw improved trading in the month of March as operating conditions stabilized. Notwithstanding all of that, fuel sales volumes for the quarter were up 20% on the prior corresponding period as COVID recovery continued to flow through and also reflecting Z's growth in market share to sit around 46%. So in closing, I'd like to again thank our employees for their ongoing commitment to the delivery of our strategy, and I look forward to building on the strong momentum we have over the coming months and into the second half of this year. Thank you, and I'll now hand back to our Chairman, Steven Gregg.

Thanks, Matt. Well spoken. I would now like to open up the meeting to general questions. There will be an opportunity to ask questions about each of the resolutions. We have a few of them a bit later in the meeting before going to the voting outcomes of each resolution. A reminder, we will first take questions here in the room. We'll then go to the Link online platform for questions. And finally, we will take questions from the phone if we have any. Any questions from the floor, please?

Chairman, I have [ Natasha Lee ].

Thank you. Thank you, Natasha.

Thank you, Mr. Chairman, and thank you to you and the Board for your performance. So I was curious about sort of your decision matrix regarding the EV charging stations. Is this working? Whilst I understand that most people with electric vehicles will probably charge at home, there's an issue about people traveling long distances or people who live in apartments and the like. The -- you talked about the co-funding from government. In your decision matrix, what are the important factors you look at in deciding the number and locations of the charging stations?

Great. Thanks for that. Good question, [ Tasha ]. I'm not going to ask Matt to answer that, but this is fundamental to our core strategy going forward. So it's a very good question. Matt, do you want to go with that...

Sure. Thank you for the question. Look, a range of factors go into that decision-making. Obviously, we monitor very closely through the scenario work we've done, what we believe the uptake rate will be for new EVs as a percentage of car sales in Australia, and that is increasing. And so we want to make sure we get our pace right to make sure the infrastructure is there. And we're working closely with governments to ensure we're getting that pace right to ensure that the infrastructure is there to enable that EV uptake. In terms of where we put the sites, range anxiety is a key issue for people and our customers when they're considering the purchase of an EV. So making sure that we have a strong offer across our key highway sites is really important. We're in the process of investing in here, in Sydney, some very significant highway sites, including on the Hume Highway out at Pheasants Nest. So there'll be 12 charging bays on each side of those highway sites as an example of ensuring we have good range coverage. And then the other factors that we take into account, a range of factors from where EVs -- in which post codes they're being bought, what network coverage our fleet customers, which are really important at the front end of this transition, what network coverage they need to support their employees to enable them to offer an EV to their employees. And then we also look at the grid and the cost of connectivity to the grid, which varies quite a lot. And so we're focused on making sure we're putting those sites where the grid can cope and where there's strong local demand, whether it be because there's high urban density, a lot of apartments and a strong demand for public or on-the-go charging.

Yes, I understand most of the issues such as connectivity and the availability of the electricity for the fast charging. I suppose what I was also getting at is the degree to which the co-funding by the government is a significant factor. And to what degree, it's a little bit of a check in the [indiscernible]. You talked about the availability of EVs. But -- and I know there are supply issues about obtaining EVs, the vehicles. But the degree to which you're going to be a market leader and putting the charging stations ahead of the growth rather than waiting for the uptake of EVs.

Yes. So that's the -- these investments will -- given the transition will take quite some time to play through the entire fleet, the infrastructure needs to be there. Our infrastructure is very well located, obviously, to enable a fast-charging solution. The government is very interested in incentivizing that capacity to come forward because the returns are long dated on this investment, but the infrastructure needs to be there. And we are committed to rolling it out, making sure we get the pace right so we're not too far ahead of it. But equally, that it's just ahead of that demand curve, which is also what the government is looking to achieve. And that's why we're working very closely with them both at state and federal levels.

Okay. Thanks. I've got a question about your workforce. I noticed that the head count has increased, but most of it seems to be in casual employees. Is there a reason why there's an increase in casual employees and not full time?

Yes. So there's an increase across a few different areas. Obviously, the acquisition of Z led to the biggest increase in our workforce. And then I think the casual labor, which is part of our Convenience Retail business, reflects a tight labor market and the high levels of turnover that we're seeing in that workforce.

Just a very quick question about the Kurnell. It looked like there was about $15.7 million in the cost of that spill. And I'm reading your report, I think that, that was all self-insurance. Is that the end of the cost? And do you have reinsurance for major events, not that the Kurnell was a major event at $15 million.

Yes, indeed, we do. And yes, I think we haven't totally seen the end of the Kurnell costs. We've seen -- certainly seen more than the majority of it now.

Reinsurance?

Yes, we do. Yes.

Roger?

Roger Ashley, Australian Shareholders Association.

Chairman, I'm Roger Ashley.

Thank you very much. Thanks, Roger.

Yes. I'm representing the Australian Shareholders Association. To start with, I'd like to say that my fellow monitor and I would like to thank those who responded to our questions in the meeting we had before this, and they responded with commendable detail and transparency, and we are pretty impressed with that.

Thank you.

I've got 2 questions. The first one is we note that on-site retail store offerings are expected to grow revenue as electric vehicles become more ubiquitous. And charging times mean a longer time spent at the service station. Do you see the future of the service station shop resembling a traditional convenience store or an eat-in or takeaway format? And how does this compare with your current operations, including the Foodary and MetroGo, which are different concepts, I think?

Yes, I'm going to let Matt answer that. But Roger, look, it's going to be a combination of what we offer now plus QSR, quick service restaurants. So we'll have a broader offering going forward. But Matt, you might want to take that.

No, I think the convenience retail business is an important area of growth and -- for positioning the long-term offer as EV take up increases over time. I think it's so important that the company now has very strong foundations in place, as I mentioned in my speech, to start to evolve and grow the offer that we have because dwell times for a fast-charging customer in the order of 20 minutes compared to someone, a fuels customer today or a fuels and convenience customer, who's there for 2 to 3 minutes. So as you point out, Roger, it is significantly increased dwell time. And so enhancing that format to make sure that we're leveraging the existing facilities but more of a food-to-go offer, potentially a QSR or a quick service restaurant offer, is part of where we're evolving the strategy and the convenience offer to make sure that these are highly attractive locations for the customer to spend more time in the future.

So does that sort of mean that the Foodary concept is possibly more something going forward in the MetroGo, which is, as I understand it, more of a convenience store offer?

Yes, that's right. And what you will -- what you see in convenience, and I think you'll continue to see as the convenience offer matures, is it has to be the right offer for the local market environment. So it's by no means a one-size fits all. It depends on what that local market environment is looking for, what the competitive and market context is. But certainly, you'll see a more mature offer. A top-up grocery offer is stronger in some of those micro markets than others. But certainly, food to go, food to sit there while you wait for your car to charge will be an increasing part of the focus of our offer.

Okay. One other question, if I may. How do you see the future of the Lytton refinery?

Here we go.

So I think Lytton plays a critical role for this country in terms of the security of fuel supply. I think that is well-acknowledged right across the community. It's certainly acknowledged strongly by both sides of government, and we certainly, at Ampol, acknowledge that. When we put in place the fuel security services payment arrangements with the government, it was strongly supported by both sides. And it's been pleasing to see the incoming Labor government continue to support that very strongly. And all of our conversations with them are very much focused on how can we ensure that the refinery is operating well, is well-supported through the FSSP, and we're setting it up for a future that will be -- energy transition will happen over time, but that refinery, if I had to sit here today, will be operating strongly for some time to come.

Yes, Roger, it's very instrumental to our future for some time. And we invest to maintain it to a high standard for that future.

Chairman, I have [ John Newman ].

Thank you. Thank you, [ John ].

Good morning, Chairman. Good morning. In fact, morning all, senior members and shareholders. Firstly, let me acknowledge I think the results for the year are satisfactory and pleasing. Now my question really follows on from the first question. And it's, if you like, a 3-part question relating to the rollout of the EV charging stations. The first part will be about what other partners, other than government that you've mentioned, what other partners you have. The second part really will be about the longer-term strategy as our competitors obviously roll out their EV charging stations. And we'll leave it at that for now, I guess. So to elaborate on the first one, what specific other partners does Ampol have in the rollout of the EV stations?

Sure. Thank you. So our partnerships beyond the partnerships we have with the New South Wales government and with the federal government through Arena are really through our deployment -- our deployment partners so -- and our providers of fast chargers. So we're partnering with a range of suppliers to make sure we're testing different technical solutions for fast charging. That is important. And we've got across the different states, and we are rolling out our offer across all of the different locations, ensuring that we've got a rollout partner to deploy the offer that is very capable to roll out on schedule and safely and reliably. So they're the partners that I would call out at this stage that we're working with to ensure we get the offer in place, and we ensure it's reliable for our customers. I think the -- so the strategy point, our competitors will change, I think. And some of our existing competitors will go down this path. Some may not. We'll see what happens over time. Certainly, we see VP as one of today's competitors rolling out strongly an e-mobility offer across Australia and also New Zealand. We're pretty encouraged by what we're seeing in the very early test work that we've done. We believe we've got a really strong network, and we've done a lot of work on focusing on the sites within our network that are really strong for an EV future. And we're also working with other partners around other destination charging solutions. So large shopping center providers, for instance, to ensure that we've got a charging offer that is leveraging the strength of our network and our food court and the facilities that we have, the convenience that they demonstrate today, a shopping center offer where people will go and dwell and be in the shopping center for half an hour or an hour where a charging offer is going to be well utilized, and then a home charging solution. So the network of the future, if you like, in our mind, is leveraging our network strength, but providing network coverage that looks a little bit different tomorrow to what it does today. Interestingly, when you think about how transition gets driven at the front end, so the EV uptake, I think one statistic I saw was that in terms of EV uptake in the U.K., around 70% of that uptake was driven by fleets. So that is corporate and government fleets who are looking to have a solution to port an EV in the hands of their employee. Now we've got a very strong position with fleets. We've got the largest fuel card in the market today. And what our fleet customers are saying to us is, please give us a solution that leverages your on-the-go network so that our employee has confidence that they can charge when they're out about; make available a home charging solution, number two; and make sure that you have EV charging or electrons integrated into your Ampol card. Digital card that can handle fuel today needs to be able to handle fuel and electrons. And that is what our fleet customers are looking for to say, we know we're going to have a mixed fleet of petrol and EVs for the next 20 years. What we need is a simple solution that puts an attractive offer in the hands of our employee, and that's indeed what we're focused on delivering.

Yes. Look, thank you very much. I think we all would understand that as the market becomes very crowded with EV chargers, Ampol is going to have a competitive edge, or it's going to have a whole lot of capital invested in those areas and then very tight margins. But no, I appreciate the detail of your answer. Thank you.

Thank you, [ John ]. Any other questions on the floor? If not, I'll ask Jeff if we have any online.

Yes, Chairman, there's one question, and it comes from [ Mazaya Proprietary Limited ]. The question is availability of E10 petrol is not good in my area of Richmond and Hawthorne in Melbourne. Can supply be increased in this area?