Ampol shares down on weak Q1 results
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More news: Ampol shares lowered in morning trading on the ASX after the fuel refiner and retailer reported a drop in refiner margins and sales volumes for the March quarter.
Shares were down 2.15% to $37.26 by 12:27pm AEST.
What they said: RBC Capital Markets analysts noted that Ampol's Q1 result was below consensus for its realised refining margin and refining production, while overall fuel sales volumes were broadly in line with estimates.
They said that overall the result came in below expectations, and that their sentiment was 'negative' on the stock.
Ampol volumes, margins drop in March quarter
The news: Fuel refiner and retailer Ampol has reported a drop in refiner margins as well as sales volumes for the March quarter.
The numbers: The company said first quarter margins at its Lytton refinery averaged USD11.80 ($17.98) a barrel, down from USD14.90 a year ago, while refinery volumes were also 7.3% lower at 1,381 million litres. Fuel sales volumes in Australia were largely flat despite a 6.2% drop in volumes at convenience retail stations. International sales volumes fell 6.7% to 1,948 million litres.
Ampol shares last closed at $38.08 and over the past 12 months has increased 28.04%.
The context: Ampol attributed the decline in margins to a USD4 per barrel reduction in benchmark Singapore refined product cracks, while production levels were impacted by the refinery-wide steam outage and the temporary delay in supply of parts for the Alkylation Unit.
The refinery returned to normal operations in early April, it said. International fuel sales volumes were lower on year, largely on account of third party spot sales, although overall fuel volumes only slipped 1.7% for the quarter. Ampol said its convenience retail business delivered earnings slightly ahead of the same quarter last year despite lower volumes.
What they said: "Improved fuel margins more than mitigated lower fuel sales volumes, largely in base grade gasoline, in a higher input price environment. Shop income grew year on year with improved gross margins and growth in sales excluding tobacco," Ampol said in a statement to the ASX.
The source: ASX announcement
