Ampol flags $35m in damages after Cyclone Alfred hit Lytton refinery
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The news: Fuel refiner and retailer Ampol faces costs of around $35 million due to the impacts of Cyclone Alfred on its Lytton refinery earlier this month.
The numbers: Ahead of the cyclone making landfall, Ampol placed its refinery into a "safe recirculation mode" with roughly 10 days of lost production until the restart was completed.
During heavy winds and rain in the days that followed the cyclone making landfall, one of the refinery's crude storage tanks was damaged, which will cost around $20 million to repair.
The company also faces increased demurrage costs of $5 million per month for three months, until its supply chain is optimised.
The context: Ampol said that around half of the costs are expected to be recovered through insurance.
The company's Lytton refinery in Brisbane is one of just two oil refineries left in Australia and the nation’s largest.
The source: ASX
