Ampol's third-quarter trading strengthened as Lytton refinery margins more than doubled and Convenience Retail sales surged, but extra maintenance will reduce expected fourth-quarter higher-value product output by about 150 million litres. The Ultra Low Sulfur Fuels project has also slipped into the first quarter of 2027, while the proposed Evie Networks acquisition awaits regulatory clearance.
- Lytton Refiner Margin rises to US$23.92 per barrel
- Convenience Retail volume increases 45% in the quarter
- Additional refinery work delays FCCU restart to mid-November
- Fourth-quarter petrol, diesel and jet fuel output cut by about 150 ML
- Ultra Low Sulfur Fuels commissioning moves to 1Q 2027
Lytton margins surge despite refinery turnaround
Ampol Limited (ASX:ALD) is extracting stronger trading results from a difficult operating window: its Lytton Refiner Margin more than doubled to US$23.92 per barrel in the September quarter, even as the refinery operated through a planned turnaround and inspection program.
The margin compared with US$10.64 per barrel in the prior corresponding period. Refinery production nevertheless fell 9.2% to 1,137 million litres during the quarter, while the year-to-date margin reached US$27.05 per barrel, up from US$8.45 a year earlier.
Additional maintenance pushes back FCCU restart
The immediate trade-off is operational rather than financial guidance: a detailed inspection found additional refractory relining work was needed on the Fluidised Catalytic Cracking Unit, alongside an opportunity to bring forward maintenance on a crude unit. Ampol said completing the work during the current turnaround was the most economically efficient option and would support reliable production and fuel availability through 2027.
The FCCU is now expected to restart in mid-November. Ampol expects production of higher-value products including petrol, diesel and jet fuel to be about 150 million litres lower in the fourth quarter than previously anticipated, although it said customer supply is not expected to be affected.
Convenience Retail becomes a larger earnings engine
Outside the refinery, the integrated supply chain benefited from favourable supply optimisation and trading conditions. The core Ampol network's headline shop sales rose by a double-digit percentage against the third quarter of 2025, with shop gross margin and average basket value also improving. Retail fuel margins were broadly in line with the prior year despite higher fuel input costs.
Convenience Retail volumes rose 45% to 1,256 million litres in the quarter. The comparison needs care: EG Australia volumes have been moved from Australian wholesale into Convenience Retail for 2026, while prior-period figures were not restated. Integration of the EG Australia acquisition, which added about 480 sites, is progressing to plan, and the first U-GO conversion was completed in early October.
Evie transaction remains subject to ACCC clearance
Ampol also reiterated that its proposed Evie Networks acquisition, announced as a $225 million deal that would more than triple its public charging footprint, remains subject to Australian Competition and Consumer Commission clearance and is expected to complete in the first half of 2027. The company pointed to continued growth in Australian battery-electric vehicle sales, which reached 207,578 for the 12 months to September, up 112% on the prior corresponding period.
Commissioning of the Ultra Low Sulfur Fuels project is now expected in the first quarter of 2027 rather than earlier, with Ampol stating that the timing change should have no material earnings impact and does not alter its group capital expenditure outlook. Meanwhile, Middle East tensions and constraints in fuel-product supply remain favourable for Ampol's integrated supply chain, although management noted that the unusually supportive trading environment seen in the first half has not recurred.
Bottom Line?
Ampol enters the final quarter with powerful refining margins and retail momentum, but the FCCU restart and the eventual cost of extra maintenance will determine how much of that strength reaches reported earnings.
Questions in the middle?
- Will the FCCU restart in mid-November without further disruption to higher-value product supply?
- How much financial impact, if any, will the additional refinery work have beyond the disclosed 150 ML output reduction?
- Can Ampol secure ACCC clearance for Evie Networks while delivering the expected integration and utilisation gains?