Jefferies sees Viva Energy, Ampol to log strong earnings on tight supply of oil

Waypoint REIT

08/08/2022 21:05

** Brokerage Jefferies expects Ampol  ALD.AX  and Viva
Energy  VEA.AX  to deliver strong results, driven by resilience
in refining and commercial sectors, despite sharp rise in oil
price weighing on retail margins and volume   
    ** We forecast core earnings from Ampol's Lytton refinery to
be A$378 mln ($263.84 mln) in Q2, compared with A$49.3 mln a
year earlier.
    ** For VEA, Jefferies expects its refining segment to
deliver EBITDA of A$395 mln ($275.71 mln), compared with A$44
mln a year earlier 
    ** We expect both ALD and VEA to comment on dip in refining
margins but were main constructive on the medium term outlook
for refining given industry capacity constraints - Jefferies 
    ** For Viva Energy, seven of 11 analysts rate the stock
'buy' or higher and four rate it hold, their median PT is A$.304
- Refinitiv Eikon 
    ** On Ampol, eight of 11 analysts rate the stock 'buy' or
higher, two rate it 'hold' and one 'sell', their median PT is
A$38.03 - Refinitiv Eikon 


($1 = 1.4327 Australian dollars)

 (Reporting by Tejaswi Marthi in Bengaluru)
 ((tejaswi.marthi@thomsonreuters.com))