The Lytton refinery produced a replacement cost operating profit (RCOP) of $158 million for the 2021 year, which included the benefit of $40 million from the Federal Government’s one-off payment to support Lytton’s continued operations.

That compares to the $144 million loss in 2020, and means it has performed a $300 million turnaround. However, 2020 also included a period when the refinery shut down for an inspection and turnaround.

Under the Federal Government scheme, it would pay refineries a maximum of 1.8 cents a litre when the margin marker drops to $7.30 per barrel of oil. However, refineries won’t receive government support when they are performing well with the cutoff at $10.20 a barrel.

Lytton’s margins in the fourth quarter reached $US11.24 a barrel. The soaring cost of petrol in Australia is partly the result of the possible war in Europe, but Australians have also returned to driving as pandemic restrictions were eased late last year.

Ampol’s overall result for the year net profit of $560 million compared with a $484 million loss in 2020. Shareholders will receive a 41 cents a share final dividend, fully franked.

Its fuels and infrastructure division reported an EBIT of $417 million, an increase of 170 per cent, despite volumes for the year falling 4 per cent.

The company was now benefitting from higher margins and more favourable market conditions.

“This provides optimism for the full year 2022 as mobility increases,” Ampol said.

“The Lytton refinery is well positioned to benefit from expansion in refining margins. with reduced earnings downside through the Fuel Security Services Payment.”

The Lytton refinery was likely to benefit from the higher margins.

The company said it had three key projects for the year: the start of its electric vehicle charging stations to 100 sites, the pilot program for Ampol branded electricity and getting a better understanding of the hydrogen supply chain.