Caltex Australia owner Ampol (ASX:ALD)
is riding high on momentum from the company’s March quarter results. The positive results have coincided with a strong rally in oil prices to monthly highs.
The energy business has reported an $8 million increase year on year in cost of sales earnings to $150 million for the March Quarter. The new data also represents a $28 million hike from the previous quarter.
Experts believe the upbeat data is attributable to the surging performance of convenience retail. Market researchers have highlighted the recovery of traffic activity on roads and receding COVID-19 restrictions were a crucial factor bolstering shop performance.
The rebranding process of Caltex Australia into Ampol had also been accelerated and not created a negative impact on the company’s revenue from convenience store and service stations.
The company’s portfolio of metro sites is also expected to expand by another 15 facilities in the second half of FY21.
Shares in Ampol (ASX:ALD)
are trading 6.02 per cent higher at $25.88