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Australia's Ampol posts weaker-than-expected HY earnings on lower Lytton production

Australian fuel merchant Ampol reported a lower than expected halfyear earnings on Monday, harmed generally by weak refining margins, interrupted production at its Lytton refinery in Queensland and softer global thirdparty sales.

Total production at the Lytton refinery was down almost 6%. in the very first half, reflecting the impact of the refinery-wide. steam interruption and delay in the supply of catalyst for the. alkylation unit due to disruptions in the Red Sea.

Additionally, incomes before interest and tax (EBIT) for. Ampol's fuels and facilities (F&I) sector decreased 26% to. A$ 225.9 million ($ 150.61 million) for the 6 months ended June,. weighed by reduced global sales opportunities.

The very first half of 2024 saw a more stable market,. especially in the 2nd quarter, minimizing opportunities for. discretionary sales activities leading to lower volumes and. margins compared to the more beneficial trading conditions in. 2023, the company said in a statement.

Ampol's net earnings after tax from continuing operations was. A$ 233.6 million on a replacement-cost basis, compared to. A$ 329.6 million a year back and missing out on a Noticeable Alpha agreement. quote of A$ 256.3 million.

The Sydney-based company stated an interim dividend of 60. Australian cents per share, below last year's 95 cents.

Ampol stated turn-around and examination activity at Lytton. started in mid-July and production is expected to go back to. regular levels and high worth item mix at the end of August.

Lytton refinery margins in the 3rd quarter will be. affected by production mix during the turn-around, with. production effect of about 300 million litres, it included. ($ 1 = 1.5004 Australian dollars)

(source: Reuters)