Ampol provides financial update from challenging third quarter

Ampol has reported earnings of $102 million for the third quarter of 2021, up around 75 per cent on the prior corresponding period (pcp).

COVID related lockdowns in key markets of NSW, Victoria and New Zealand persisted through the quarter, impacting fuel and shop sales, while Lytton delivered a strong outcome compared to last year which was impacted by the extended Turnaround and Inspection (T&I).

The Fuels and Infrastructure (excluding Lytton) result of $61 million was in line with the same time last year as growth in the international business helped to offset domestic COVID lockdown impacts.

Australian wholesale volumes declined 2.8 per cent compared with the same time last year, as the resilience of diesel demand was unable to offset the declines in petrol volumes.

Lytton Refinery earnings of $22 million include no Fuel Security Services Payment and reflect the continued improvement in the Singapore Weighted Average Margin. 

The Convenience Retail result for the quarter was impacted by the NSW and Victorian lockdowns, with fuel volumes down 16 per cent compared with the same time last year and 16 per cent lower than the previous quarter.

Despite the lockdowns, Ampol continued to execute on its retail strategy, with a further 10 sites converted to the Woolworth’s Metro format, bringing the total to 20 and more than 600 sites now rebranded to Ampol.

Matt Halliday, Managing Director and CEO, said the third quarter was a challenging period for many businesses and Ampol was no exception.

“In the face of extended lockdowns on the East Coast our business and our people responded, focusing on the safety of our team members and customers and cost control.

“The recent announcements from the NSW and Victorian State governments to lift COVID restrictions linked to higher vaccination rates is encouraging. While we do expect volumes to begin to recover as consumer mobility increases, crude and refined product prices have continued to trend higher in recent weeks. This will benefit Lytton’s profitability but will temper retail margins in the short term. Additionally, the reopening of domestic and international borders will be positive for jet demand.

“While it will take a little time to assess the strength of the recovery, we are optimistic about entering 2022 with improved momentum as restrictions are progressively eased.”

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