Ampol lifts Q3 margins but flags lower Q4 output

Ampol reported a significantly improved refining backdrop in the third quarter, led by its Lytton refinery in Brisbane. The Lytton refinery margin rose to US$23.92 per barrel, up from US$10.64 per barrel in the same quarter a year earlier. The increase reflects elevated regional refining margins, which boosted the earnings environment for the company’s refining operations.

Management said refining performance continued to benefit from these elevated regional margins. However, the uplift was partially offset by higher landed crude premiums, which increased input costs. Even with this offset, Ampol described the overall trading environment as net favourable for its integrated supply chain.

Total group sales volumes in the third quarter reached 6,245 million litres, compared with 6,028 million litres in the prior corresponding period. The increase in sales indicates steady demand across Ampol’s customer base, even as operational constraints affected refinery output.

Lytton refinery production was lower year-on-year, at around 1.14 billion litres during the quarter. The company linked the reduced output to lower refinery throughput, which reflected both planned work and additional activities undertaken during the period. This created a contrast between strong margin performance and softer physical production.

During a turnaround inspection at Lytton, Ampol identified additional inspection and reliability work on the refinery’s Fluidised Catalytic Cracking Unit. The FCCU is a key processing unit for producing higher-value products such as gasoline, diesel and jet fuel. Addressing the newly identified work will require extended maintenance activity.

As a result, Ampol now expects production of gasoline, diesel and jet fuel in the fourth quarter to be about 150 million litres lower than previously anticipated. This reduction is tied directly to the extra FCCU maintenance identified in the third quarter. The updated outlook tempers the near-term volume benefit from the stronger refining margin environment.

Ampol characterised current conditions for its integrated supply chain as net favourable, balancing strong margins against higher feedstock costs and operational downtime. The company indicated that elevated regional refining margins continue to support its refining business despite the impact of crude premiums.

The combination of higher third-quarter margins, increased group sales volumes and lower refinery throughput highlights the mixed operational picture facing Ampol. While earnings metrics are supported by stronger unit margins, the planned and additional maintenance work, and the expected fourth-quarter volume impact, shape a more cautious outlook for near-term fuel production.