Ampol shares lift after strong third quarter

The news: Fuel refiner and retailer Ampol has reported a surge in earnings, driven by stronger refining margins and higher sales at its fuel pumps.

The numbers: The company said September quarter margins at its Lytton refinery rose 27% from a year ago to USD19.69 a barrel along with a slight increase in volumes. Group fuel sales volume also rose 26% from a year ago to 7 billion litres. That helped drive earnings before interest and tax 65% higher to $438.2 million. Ampol shares were up nearly 5% to $33.24.

The context: Ampol’s results contrast with rival Viva Energy, which this week reported a drop in refining margins and compressed retail fuel margins for the quarter. Ampol said its refining margins stayed well above long-term averages, thanks to a bigger gap between crude oil costs and prices for petrol and diesel, while fuel sales volumes have grown as the post-COVID recovery in aviation has continued.