Australian fuel retailer Ampol saw its shares tumble on Monday after the company lowered its fourth-quarter production forecast for high-value fuels at its Lytton refinery, despite reporting a sharp increase in refining margins during the third quarter.
Ampol, Australia's largest fuel retailer, announced that additional maintenance was required at the refinery's Fluidised Catalytic Cracking Unit (FCCU) following a recent inspection. The unexpected work has pushed the unit's scheduled restart to mid-November, disrupting production plans.
The company expects the extended maintenance to reduce fourth-quarter gasoline, diesel and jet fuel output by approximately 150 million litres compared with its previous forecast.
Investors reacted negatively to the revised outlook, sending Ampol shares down as much as 7% to A$40.00, their lowest level since August 24. The stock ranked among the biggest decliners on Australia's benchmark S&P/ASX 200 index, which gained approximately 0.3%.
Despite the production setback, Ampol reported stronger overall fuel sales during the third quarter. Group sales volumes increased to 6,245 million litres from 6,028 million litres in the corresponding period last year, reflecting continued demand across its operations.
Growth in Ampol's international business, which recorded double-digit gains, helped compensate for weaker sales performance in Australia and New Zealand.
Meanwhile, the company's Lytton refinery benefited significantly from higher regional refining margins, driven partly by supply disruptions associated with the ongoing Middle East conflict.
Ampol's Lytton refining margin surged to $23.92 per barrel during the third quarter, more than doubling from $10.64 per barrel a year earlier. However, higher landed crude oil premiums and scheduled maintenance partially offset those gains.
The company emphasized that regional supply disruptions continued to provide a net benefit to its integrated fuel supply chain.
Ampol's convenience retail operations also demonstrated resilience, with headline shop sales exceeding year-earlier levels when excluding EG Australia and U-GO locations.
Additionally, third-quarter group replacement cost operating profit EBIT exceeded the average quarterly performance recorded during the second half of the previous year.
While elevated refining margins and international growth supported Ampol's financial performance, the reduced Lytton refinery output forecast raised concerns about near-term fuel production and operational efficiency.
