Ampol Limited (ASX:ALD) Reports Fourth Quarter 2024 Update
Lytton Refiner Margin Update
Ampol Limited (ASX:ALD) reported a Lytton Refiner Margin (LRM) of US$4.60 per barrel for the fourth quarter of the 2024 financial year. This figure reflects the impact of a maintenance period at the Fluidised Catalytic Cracking Unit (FCCU) in November, during which historical average product cracks were lower. December saw an improvement in LRM to US$6.10 per barrel. Total refinery production for the quarter reached 1,542 million litres, which included a less favorable mix of high-value products due to the maintenance work. The FCCU has since restarted and operated as planned, allowing Ampol to defer upcoming maintenance scheduled for 2025 to the first half of 2026.
Group Trading Update
Ampol expects to report an unaudited Group Replacement Cost Operating Profit (RCOP) EBIT of approximately $715 million and RCOP EBITDA of about $1,200 million for the full 2024 financial year. This performance follows two years of record results. The updated results are driven by consistent performance in the Australian Convenience Retail business and resilience in the New Zealand segment despite a challenging economic environment. Additionally, fourth quarter sales volumes improved, although the lower margin wholesale and commercial sectors drove this growth.
The company faced increased operational costs in the second half of 2024 to maintain supply to customers, primarily related to unplanned outages at Lytton. The F&I International segment continued to operate in a well-supplied market with reduced volatility, limiting value-creating opportunities throughout the year.
Ampol’s CEO, identified as the source of these comments, noted the in-depth understanding of current operational challenges and highlighted the company’s focus on future growth. The market remains impacted by new sanctions and seasonal factors, with middle distillate cracks rising amidst a colder northern hemisphere winter.
Additional details will be announced in the upcoming Full Year Results Release, scheduled for 24 February 2025.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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