Petrol and diesel supplier Ampol (ASX:ALD)
, has provided an update on the performance of the Lytton refinery for Q2 2021. Lytton Refinery is an oil based in Queensland, owned and operated by Ampol. The Lytton refiner margin (LRM) for Q2 was US $6.29 per barrel, higher than the US $5.48 per barrel in the first quarter but remains below historical averages.
Singapore weighted average margin (SWAM) also improved, reaching US $6.01 per barrel for the quarter, higher than the US $5.41 per barrel in Q1. The LRM outperformed SWAM, underpinned by the lower landed cost of crude. Refinery production was strong, increasing to 1,573ml in Q2, up from 1,419ml in Q1.
The Lytton refinery is expected to return to a modest RCOP EBIT profit for Q2, before the benefit of the government short-term support payment. This follows the breakeven result for the first quarter.
Following the decision to continue to operate the Lytton refinery, announced in May 2021, Ampol now expects to receive a once-off grant from the Federal Government’s temporary refining production payment of approximately $40 million relating to production in 1H 2021.
Shares in Ampol (ASX:ALD)
are trading 1.2 per cent lower at $28.21.