Insights

Ampol (ASX:ALD) share price higher following Q3 update

Ampol has just handed in its third quarter update…
The post Ampol (ASX:ALD) share price higher following Q3 update appeared first on The Motley Fool Australia. –

The Ampol Ltd (ASX: ALD) share price is on the move on Tuesday.

At the time of writing, the fuel retailer’s shares are up 1% to $31.53.

What’s driving the Ampol share price higher?

Investors have been bidding the Ampol share price higher today following the release of its third quarter update.

According to the release, the company delivered strong profit growth during the quarter despite battling lockdowns in New South Wales and Victoria.

Ampol reported unaudited Fuels & Infrastructure (F&I) earnings before interest and tax (EBIT) of $83 million. This was up from a loss before interest and tax of $19 million a year earlier and was driven by an improved performance by the Lytton refinery business.

Lytton Refinery RCOP EBIT came in at $22 million. This reflects the continued improvement in the Singapore Weighted Average Margin. The Lytton Refiner Margin (LRM) for the quarter was US$6.76/bbl, up from US$5.90/bbl during the first half. Total production for the quarter was 1,565 ML compared with nil in the third quarter last year.

Things weren’t quite as positive for the Convenience Retail (CR) business, which reported a 62% decline in EBIT to $33 million. This reflects the New South Wales and Victorian lockdowns, with fuel volumes down 16% compared with the same time last year.

Nevertheless, Ampol ultimately reported a 76% increase in unaudited third quarter EBIT to $102 million.

Management commentary

Ampol’s Managing Director and CEO, Matt Halliday, said: “The third quarter was a challenging period for many businesses and Ampol was no exception. In the face of extended lockdowns on the East Coast our business and our people responded, focusing on the safety of our team members and customers and cost control.”

Mr Halliday appears optimistic that the end of lockdowns will boost its performance.

He commented: “The recent announcements from the New South Wales and Victorian State governments to lift COVID restrictions linked to higher vaccination rates is encouraging. While we do expect volumes to begin to recover as consumer mobility increases, crude and refined product prices have continued to trend higher in recent weeks. This will benefit Lytton’s profitability but will temper retail margins in the short term.”

“Additionally, the reopening of domestic and international borders will be positive for jet demand. While it will take a little time to assess the strength of the recovery, we are optimistic about entering 2022 with improved momentum as restrictions are progressively eased,” the CEO concluded.

The Ampol share price is up 11% in 2021.

The post Ampol (ASX:ALD) share price higher following Q3 update appeared first on The Motley Fool Australia.

Should you invest $1,000 in Ampol right now?

Before you consider Ampol, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Ampol wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

What this top broker is saying about the Ampol (ASX:ALD) share price

Why Ampol, Fortescue, IAG, & Perenti shares are charging higher

Ampol (ASX:ALD) share price zooms higher on NZ$2.8bn Z Energy acquisition

Z Energy (ASX:ZEL) share price leaps 6% on Ampol takeover news

Ampol (ASX:AMP) share price on watch after Z Energy takeover agreement

Motley Fool contributor James Mickleboro 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 Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!