Jefferies expects strong updates from Australian fuel retailers as margins soar amid Middle East conflict

Ampol

15/04/2026 21:02

** Jefferies expects strong first-quarter trading updates from Australian refiner-retailers Ampol ALD.AX and Viva Energy VEA.AX given benefits stemming from the Middle East conflict

** Brokerage says that following the closure of the Strait of Hormuz, refining cracks are at record highs, retail and commercial volumes are strong due to stockpiling and share gains from independents, and retail margins are robust

** Estimates record refining margins - of around $30/bbl above normal levels - will deliver a substantial one-off cash benefit of ~A$134m for ALD and ~A$143m for VEA

** Adds the excess cash can help reduce Viva's elevated leverage, and provide Ampol cash to fund its inorganic growth

** Notes that there was no scheduled refinery maintenance by either company during the first quarter that would adversely affect their quarterly updates

** Shares of Viva Energy and Ampol added over 23% and 3.8% YTD, respectively

 (Reporting by Shruti Agarwal in Bengaluru)

 ((Shruti.Agarwal@thomsonreuters.com))