Australia's Ampol first-quarter refining margins jump on solid fuel sales
(Reuters) - Australia's Ampol Ltd on Thursday reported a 40.7% expansion in refining margins at its Lytton refinery in Queensland, powered by higher prices for refined products such as petrol and diesel with continued strong performance across all segments.
Increased mobility following pandemic lockdowns and a rebound in travel coupled with a recovery in the aviation sector cushioned solid sales volumes in Australia during the quarter, accounting for a 14% growth, with improved sales for refined products such as petrol, diesel, and jet fuel.
The country's top fuel refiner's quarterly net profit on a replacement cost basis, which excludes the impact of inventory and foreign exchange changes, was $228.03 MM, reflecting a growth of 82% from a year ago.
Global oil supply shortfall and limited supply from China have lifted prices of refined products, benefiting refining margins for regional players like Ampol and its smaller peer Viva Energy Group.
Margins at Lytton refinery expanded to $14.90 per barrel for the quarter ended March 31, compared with $10.59 per barrel a year ago. Refinery production for the quarter rose 5.5% to 1,490 million liters.
During the quarter, Ampol flagged disruptions in its New Zealand markets, which were impacted by extreme weather events. However, its unit Z Energy saw improved trading in the month of March on the back of stabilizing operating conditions.
"Since the end of March, Singapore refined product cracks across all products have softened, reflecting short-term risk to global demand and the potential for higher Chinese exports," Ampol said in a statement.
The company has also temporarily shut down a unit of its Lytton refinery in Queensland for maintenance, a move expected to hit gasoline production and will cost Ampol up to $33 MM. The company reassured repair and maintenance of a slide valve is on schedule with no disruptions to customers.
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