Ampol to carry out further maintenance at Lytton, 3Q output plunges
- Q3 Lytton refinery production down 42%
- Company posts 92% fall in 3Q refinery margin
- Shares hit 21-month low in early trade
Ampol, Australia's top fuel retailer, said on Tuesday it would undertake further maintenance at its Lytton refinery next month after the company reported a sharp drop in 3Q output, sending its shares to a 21-month low.
The company said its fluidized catalytic cracking unit (FCCU) at the Lytton refinery in Queensland had been experiencing operational issues and it would repair the unit in November.
In the third quarter ended September, the company had conducted a planned inspection and maintenance of the reformer.
The refinery will operate at a reduced rate and is expected to produce around 350 MM liters (l) of high-value product in November without disrupting customer supply, Ampol said in a statement.
Shares of Ampol fell as much as 5% to A$27.68 by before recouping some losses, while the benchmark stock index .AXJO was 0.7% higher.
Ampol's refinery production at Lytton declined 42% to 916 MMl in 3Q, impacted by planned maintenance activities and weaker finished and intermediate product cracks.
Refinery margin at Lytton came in at $1.48 per barrel, a 92% drop from a year ago, impacted by lower value production grades and weak global refining margins.
The company estimated that weaker refining margins and recent maintenance activities at Lytton and associated operating issues, together with supply-side response to the disruptions, would affect its replacement cost earnings before interest and tax by A$100 MM ($67.3 MM).
Ampol reported a 5.7% drop in total group sales to 6.52 B liters for the third quarter, although it benefitted from strong volumes in its convenience retail, New Zealand, and fuels and infrastructure operations in Australia.
The fuel supplier said it was targeting to cut costs by A$50 MM initially in 2025 and that it was also pursuing other opportunities to boost productivity and simplify its business operations.
($1 = 1.4881 Australian dollars)
Comments