Australia's Ampol posts weaker-than-expected HY profit on lower Lytton production
Adds details on F&I international segment, Lytton outlook in paragraphs 4,7,8
Aug 19 (Reuters) -Australian fuel retailer Ampol ALD.AX reported a lower than expectedhalf-year profit on Monday, hurt mainly by weak refining margins, disrupted productionat its Lytton refinery in Queensland and softer international third-party sales.
Total production at the Lytton refinery was down nearly 6% in the first half, reflecting the impact of the refinery-wide steam outage and delay in the supply of catalyst for the alkylation unit due to disruptions in the Red Sea.
Moreover, earningsbefore interest and tax (EBIT) for Ampol's fuels and infrastructure (F&I) segment declined 26% to A$225.9 million ($150.61 million) for the six months ended June, weighed byreduced international sales opportunities.
"The first half of 2024 saw a more stable market, particularly in the second quarter, reducing opportunities for discretionary sales activities resulting in lower volumes and margins compared to the more favourable trading conditions in 2023," the company said in a statement.
Ampol's netprofit after tax from continuing operations was A$233.6 million on a replacement-cost basis, compared with A$329.6 million a year ago and missing a Visible Alpha consensus estimate of A$256.3 million.
The Sydney-based firm declared an interim dividend of 60 Australian cents per share, down from last year's 95 cents.
Ampol said turnaround and inspection activity at Lytton started in mid-July and production is expected to return to normal levels and high value product mix at the end of August.
Lytton refinery margins in the third quarter will be impacted by production mix during the turnaround, with production impact of about 300 million litres, it added.
($1 = 1.5004 Australian dollars)
Reporting by Himanshi Akhand and Echha Jain in Bengaluru; Editing by Chris Reese
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