Key points
- The Ampol share price is currently up 1.44%, trading at $30.98
- The company announced its Lytton Refinery is set to report its best quarterly performance in more than 4 years
- Over the final quarter of 2021, the Lytton Refiner Margin was 66% higher than it was in the third quarter.
The Ampol Ltd (ASX: ALD) share price is in the green this morning after the company released a performance update from its Lytton Refinery in Brisbane.
Within it, Ampol announced the refinery – which, only recently, the company was contemplating closing – may have just finished its best quarter in more than 4 years.
At the time of writing, the Ampol share price is $30.98, 1.44% higher than its previous close.
Let's take a closer look at what the fuel and convenience retailer announced to the market today.
Ampol share price higher on refinery's quarterly performance
Anticipation of a strong fourth-quarter performance from the Lytton Refinery is boosting the Ampol share price this morning.
The company is expecting the refinery will deliver its highest replacement cost of sales operating profit (RCOP) earnings before interest and tax (EBIT) in more than 4 years for the final quarter of 2021.
According to the company, the result will reflect its "substantial operating leverage to improved refiner margins".
Though, its strong performance will probably see it walking away without a Fuel Security Service Payment – part of the Fuel Security Package – for the quarter.
Over the quarter ended 31 December 2021, the Lytton Refiner Margin (LRM) was US$11.24 per barrel. That's significantly higher than the previous quarter's margin of US$6.76 per barrel.
Additionally, the Singapore Weighted Average Margin (SWAM) rose higher than its 5-year average to reach US$12.79 per barrel. For context, it was just US$7.67 per barrel in the third quarter.
The SWAM was boosted by improved regional refining supply and demand fundamentals.
Finally, production at the refinery strengthened over the quarter. It produced 1,585 megalitres over the quarter. That's 20 megalitres more than it did in the previous period.
Today's gains included, the Ampol share price is up 4.28% year to date. It has also gained almost 10% over the last 30 days.
