Australia's Ampol quadruples Q1 Lytton refinery margin but flags higher crude costs (updated)

Ampol

22/04/2026 24:22

Q1 Lytton refinery margins quadruple to $25.45/barrel

Co secures fuel supplies to May-end, crude into July

Faces higher landed crude costs for Lytton refinery

Shares soar 5.4%

Adds share moves in paragraph 4, context throughout

April 22 (Reuters) - Australia's Ampol ALD.AX said on Wednesday that it more than quadrupled margins from its Lytton refinery in Queensland in the first quarter and shored up fuel supplies, as the Iran war has upended energy markets and sent crude prices sharply higher.

Global fuel prices soared in March as the U.S.-Israeli war with Iran battered key Gulf energy infrastructure and led to the closure of the Strait of Hormuz, which channels about a fifth of global oil and liquefied natural gas supplies.

Ampol said it had secured fuel supplies to at least end-May and crude into July, but flagged higher landed crude costs for Lytton in April-to-date.

Shares of the company surged as much as 5.4%, while the broader Australian benchmark .AXJO slumped 0.7%.

The country's top fuel retailer said its refining margins improved to $25.45 per barrel in the March quarter from $6.07 per barrel a year earlier, reflecting gains in global refiner margins in March.

Ampol said that it was "well-placed" when the Middle East conflict broke out, having received "brought-forward demand" in Australia and New Zealand, which refers to earlier-than-usual fuel demand uptick in anticipation of higher fuel costs.

The company said despite the global fuel shock, suitable crudes for its refinery remained available as it had secured purchases into July, albeit at a higher landed cost.

The company entered the second quarter with a "well-positioned" hedge book to shield it against volatility and higher physical premiums.

The results come after a major fire recently broke out in Viva Energy's VEA.AX Geelong refinery, the only other refinery in Australia, hitting petrol production.

Ampol said it had taken steps to collaborate with governments in Australia and New Zealand for fuel supply, including delaying maintenance for its fluidised catalytic cracker unit at Lytton to August from June.

The company's quarterly refinery production was 10% higher than last year, when Cyclone Alfred impacted production.

 (Reporting by Nichiket Sunil and Jasmeen Ara Shaikh in Bengaluru; Editing by Vijay Kishore and Subhranshu Sahu)

 ((JasmeenAraIslam.Shaikh@thomsonreuters.com;))