Ampol’s Lytton refinery in Queensland is expected to deliver its highest quarterly profit result in four years.

The Lytton Refinery Margin (LRM) for 4Q 2021 was US$11.24 a barrel, significantly higher than the third quarter margin of US$6.76 a barrel.

Last year Ampol considered closing the refinery, but a government support package enabled the refinery to stay operational until at least mid-2027.

Given the strong results, Ampol does not expect to receive a Fuel Security Services Payment (FSSP) for production in 4Q 2021.

The FSSP is structured to provide a high level of support when refining margins are low, and no support when refining margins are high, reducing volatility for refiners and ensuring Government support is targeted to the times it is most needed.  

The Lytton refinery produced 1,585ml of oil in 4Q 2021, up from 1,565ml in the third quarter.

The 2021 Full Year Results Release is scheduled for 22 February 2022.

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