Ampol Limited has outlined a strategic shift in its energy solutions business across Australia and New Zealand as it pivots its focus toward electric vehicle charging infrastructure and renewable fuels. The company is divesting its retail electricity operations in both markets, a move that builds on four years of experience following the launch of its Future Energy and Decarbonisation strategies in May 2021. Ampol believes this streamlining will not only sharpen its competitive advantage in the mobility energy transition but also drive improved earnings over time. In New Zealand, Ampol’s wholly owned subsidiaries, including Z Energy Limited and Flick Energy Limited, have entered an agreement to transfer their electricity retailing business – encompassing Flick and Z branded customer contracts and a hedge book – to Meridian Energy Limited. As part of this deal, Meridian will acquire Flick’s customer base for NZ$70 million, with a transitional services agreement in place to support the migration process. The collaboration paves the way for potential strategic alliances as New Zealand’s energy market evolves, aligning with Ampol’s broader focus on EV charging and decarbonisation. In Australia, Ampol has also signed an agreement to sell 100% of its retail electricity arm, Ampol Energy (Retail) Pty Ltd, to AGL Sales Pty Ltd for a nominal sum. This deal covers the retail customer base in the residential and contracted business electricity sectors but deliberately excludes staff, systems, wholesale electricity market capabilities, and the company’s growing EV charging network. The transactions are expected to result in pre-tax cash proceeds of approximately $65 million for Ampol. The restructured focus is part of a financial turnaround with significant technical indicators supporting the strategy. Ampol projects that its Group Replacement Cost Operating Profit Earnings Before Interest, Tax, Depreciation and Amortisation (RCOP EBITDA) will see an uplift, reaching an exit run rate of around $30 million per annum by the end of 2025. This boost is expected in addition to a previously announced cost reduction program targeting nominal savings of $50 million in the same year, reflecting a combined effort to reduce losses relative to 2024. Bullish sentiment surrounds the announcement, driven by the company’s concentrated effort on the high-growth EV charging market and streamlined operations. Investors may view the potential for a faster response to changes in the energy transition landscape, along with significant cost reductions and improved operating profit margins, as positive factors for future earnings. However, those with a more cautious view might highlight potential short-term challenges linked to the divestiture process, integration risks with new partners, and the uncertainties of reallocating focus away from the established electricity retail business. These factors underscore the balance between immediate restructuring costs and the longer-term strategic benefits that Ampol aims to achieve.