Ampol shares rise after posting 10% increase in Q1 production

The news: Shares in Ampol rose in early trade after the company reported a 10% year-on-year increase in its Lytton refinery production for the first quarter, alongside a significant rise in the Lytton Refiner Margin (LRM).

The numbers: Shares had risen 4.27% to $32.96 at 11:05am AEST.

RBC Capital Markets analyst Gordon Ramsay described the first-quarter trading update as positive, noting that the outlook remains highly supportive. He maintains an outperform rating on the stock, with a price target of $36.

The context: Ampol reported that the LRM reached USD25.45 ($35.56) per barrel during the quarter, driven by a significant uplift in global refiner margins following the start of the Middle East conflict in March.

The total Lytton refinery production for the first quarter was 1,434 million litres, a 10% increase from a year ago. Ampol said the refinery processes different grades of crude oil from those found in the Persian Gulf, therefore appropriate crudes for the refinery remain available in the market with normal purchasing patterns.