Ampol Ltd (ASX: ALD) shares are back in motion on Wednesday, pushing higher after a steady run into April.
The stock is up 4.43% to $33.01 in midday trade, adding to recent gains.
Over the past 12 months, the share price has climbed roughly 50%.
The stock had already been building momentum, and today's update has kept it going.
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Refining margins surge as trading conditions shift
According to the release, Ampol reported a Lytton Refiner Margin (LRM) of US$25.45 per barrel for the March quarter. That is up from US$6.07 a year earlier.
That jump reflects a clear shift in global refining conditions. Tighter product markets and shifting trade flows have lifted margins across the sector.
Production also improved during the quarter. Total output reached 1.434 billion litres, up 10% year-on-year after prior weather disruptions.
Sales volumes steady, but mix continues to evolve
Group sales volumes were broadly flat at 6,125 million litres. The detail underneath was more mixed.
Convenience retail volumes rose 3.5%, while wholesale volumes increased 5.2%. Both areas showed steady demand across the quarter.
Net sales volumes declined, reflecting differences in trading activity compared with last year. International volumes, including New Zealand, edged higher.
Overall demand has held up, even as pricing and supply conditions continue to shift.
Supply disruptions force operational adjustments
The broader backdrop has been shaped by disruption in the Middle East. Ampol said this has affected global oil markets and refined product flows into Australia.
The Lytton refinery processes a different crude slate, which has supported ongoing operations. That said, the company has taken steps to lock in additional supply.
This includes diesel and jet fuel imports through May and June. Agreements have also been put in place to support fuel availability.
Maintenance timing has been adjusted as well. Turnaround work on a key refinery unit has been pushed back to August.
Momentum carrying into the second quarter
Ampol expects stronger trading conditions to continue into the current quarter. The company has entered the period with a well-positioned trading book.
Refining margins remain elevated, although volatility in global markets continues. Crude pricing and supply flows remain key variables.
Consumer demand across Australia and New Zealand has held up despite cost pressures. That strength looks set to carry into the second quarter.
Foolish bottom line
The recent strength in Ampol shares is being backed by improving refining margins and steady demand.
However, much of that tailwind is tied to global conditions that can shift quickly. That leaves the share price exposed if refining margins begin to ease.
