Full Breakdown
Oil Companies Post Record Profits as Australians Face a Cost-of-Living Crisis
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Core Event: Surge in Earnings for Ampol, Viva Energy and Inpex
Ampol’s third-quarter report to the Australian Securities Exchange showed its refinery margin more than doubled from US$10.62 million a year earlier to US$23.92 million, driving a first-half net profit increase of roughly 376 % (from A$180.2 million to A$857.2 million). Viva Energy, which operates the Geelong refinery and supplies Shell-branded fuel, announced operating profit up 154 % (from A$304.9 million to A$774.4 million) despite fuel volumes rising only 1.3 %. Japanese gas producer Inpex, a major shareholder in the Ichthys LNG project, projected full-year profit of ¥510.0 billion, attributing the record to higher sales prices and stable operations despite Middle-East uncertainty.
Background & Context: Energy Prices, Geopolitical Tensions and Household Strain
Australia is experiencing a cost-of-living crisis, with rising fuel and energy prices hitting households hard. A large share of Australian-produced LNG is exported to Japan, meaning domestic gas markets see limited relief from higher global prices.
Official Statements & Responses: RBA Deputy Governor on Corporate Social Licence
During a recent fireside chat, Reserve Bank of Australia Deputy Governor Andrew Hauser was asked whether companies should adjust to lower profitability to maintain a social licence. Hauser replied that firms are “extremely conscious” of their social licence, though his comments focused on small-business concerns and future technology sectors rather than immediate energy pricing. No policy action was announced.
Data & Statistics: Key Figures
- Ampol Q3 margin: US$23.92 million (vs. US$10.62 million a year earlier)
- Ampol H1 net profit: A$857.2 million (up 376 % from A$180.2 million)
- Viva Energy H1 operating profit: A$774.4 million (up 154 % from A$304.9 million)
- Fuel volume growth for Viva Energy: 1.3 %
- Inpex projected full-year profit: ¥510.0 billion
The analysis reflects commentary rather than established fact, highlighting divergent views on corporate profitability, social responsibility and the broader impact on Australian households.