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Home Energy Company News By Charles Kennedy - Oct 18, 2026, 8:18 PM CDT Australian fuel supplier Ampol Limited reported a sharp improvement in refining margins during the third quarter of 2026, benefiting from tight regional fuel supplies and favorable trading conditions even as extended maintenance at its Lytton refinery threatens to constrain production. The company's Lytton Refiner Margin (LRM) surged to $23.92 per barrel during the July-September quarter, compared with $10.64 per barrel a year earlier, representing a 125% increase. For the first nine months of 2026, refining margins averaged $27.05 per barrel, more than triple the $8.45 per barrel recorded during the corresponding period of 2025.
The stronger margins helped lift Ampol's replacement cost operating profit before interest and taxes (RCOP EBIT) compared with the quarterly average in the second half of 2025. The company did not disclose an absolute earnings figure in its trading update. Ampol attributed its improved performance to elevated regional refining margins, favorable fuel trading conditions and continued growth in its convenience retail business.
However, higher crude oil acquisition premiums and scheduled maintenance partially offset those benefits. Despite stronger refining economics, Ampol expects additional maintenance at its Lytton refinery in Queensland to weigh on fuel production during the remainder of 2026. Inspections identified the need for further refractory repairs to the fluid catalytic cracking unit, prompting management to expand the ongoing maintenance program and bring forward work on one of the refinery's crude processing units.
The company now expects the catalytic cracking unit to restart in mid-November. As a result, fourth-quarter production of higher-value fuels, including gasoline, diesel and jet fuel, is forecast to be approximately 150 million liters below earlier expectations. Lytton produced 1.137 billion liters during the third quarter, down 9.2% from the same period last year.
Ampol said completing the additional maintenance during the current shutdown should improve operational reliability in 2027 while avoiding future disruptions. The company does not expect customer fuel supplies to be affected. Meanwhile, commissioning of its Ultra Low Sulfur Fuels project has been pushed back to the first quarter of 2027.
Ampol expects no material earnings impact from the delay and has maintained its capital expenditure outlook. Ampol's total fuel sales volumes reached 6.245 billion liters in the third quarter, an increase of 3.6% year over year. International sales volumes climbed 23% to 1.841 billion liters, helping offset weaker Australian wholesale demand and a 5.3% decline in New Zealand volumes.
Convenience Retail fuel volumes increased 45% to 1.256 billion liters, although comparisons were affected by the EG Australia acquisition and changes in volume classification that were not applied retrospectively to 2025 figures. Ampol also reported double-digit growth in headline shop sales across its core retail network, excluding EG and U-GO locations. Ampol said escalating geopolitical tensions in the Middle East and persistent fuel supply constraints continued to create favorable conditions for its integrated refining and distribution operations.
However, the company cautioned that the exceptional trading conditions experienced during the first half of 2026 had not returned. Separately, Ampol is expanding its presence in Australia's electric vehicle charging market through its proposed acquisition of Evie Networks, announced on October 1. The transaction remains subject to Australian Competition and Consumer Commission approval, with completion anticipated during the first half of 2027.
The acquisition would strengthen Ampol's position in Australia's growing electric mobility sector as the company diversifies beyond traditional transportation fuels. For investors, the latest trading update highlights the benefits of elevated refining margins and international sales growth, while underscoring the near-term production risks associated with refinery maintenance. By Charles Kennedy for Oilprice.com More Top Reads From Oilprice.com U.S.
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