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Lytton cops a setback from floods but refinery margins booming

Business

Brisbane’s floods wiped $15 million from Ampol’s earnings for the March quarter, but its Lytton refinery has been revived from near closure to a money spinner.

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The company said despite the hit, earnings from the Lytton refinery grew to $60 million, compared with a break-even result in corresponding quarter and “was a major contributor to the improved fuels and infrastructure (F&I) result”.

The F&I earnings before interest and tax grew 80 per cent to $119 million for the first quarter and Lytton $60.1 million was on the back of rising prices for refined products.

Lytton’s margin for the quarter was $US10.59 a barrel and included a $US14.62 per barrel margin in March.

The Lytton refinery posted a $145m loss in 2020 and Lytton was being considered for closure.

Total production for the quarter was down on the result for the first quarter last year because of the impacts from the floods which closed the Brisbane River to shipping.

“The estimated impact is a $15 million reduction in replacement cost operating profit earnings before interest and tax,” Ampol said.

Ampol said it was still experiencing market volatility because of lower Chinese refined product exports and the impact from the sanctions on Russia.

“This has led to further increases in market prices for diesel and jet fuel above crude oil and therefore a further strengthening on refining margins.

Managing director Matt Halliday said Ampol’s supply chain was showing resilience.

 

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