Ampol has provided an update on the trading conditions and financial performance for the Lytton refinery during the second quarter.
Ampol has reached an unprecedented result in the second quarter, almost tripling its 4Q 2021 result, which was the highest quarterly profit in four years.
The Lytton Refiner Margin (LRM) for the second quarter reached US$32.96 per barrel, materially higher than the US$10.59 per barrel realised in the first quarter, and US$11.24 in 4Q 2021.
The significant increase in Singapore Weighted Average Margin (SWAM) was the key driver of the increase, reaching US$33.62 per barrel for the quarter as the Covid demand recovery and low product inventory levels coincided with the global supply shock caused by Russian sanctions and by Chinese export quotas trending below historical levels.
The volatile market conditions also saw an increase in the landed cost of crude, which partially offset the uplift in SWAM.
Ampol was able to take advantage of the strong refiner margin environment through increased refinery production of 1,564 ML, up from 1,413 ML in the first quarter of the year, which was impacted by the Brisbane River closure and unscheduled maintenance.
Last year Ampol considered closing the refinery, but a government support package enabled the refinery to stay operational until at least mid-2027.
The 2022 first half results release is scheduled for 22 August.