Ampol (ASX:ALD) Sees Lytton Refining Earnings Rise as Fuel Markets Tighten

Aditi Sarkar

23 September 2026 02:09 PM AEST

Ampol (ASX:ALD) Sees Lytton Refining Earnings Rise as Fuel Markets Tighten

Image Source: Shutterstock

You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to our research reports, in-depth technical and fundamental research. Learn more

Start Your Free Trial Now!

Ampol (ASX:ALD) is turning the global fuel shock into a Earnings lift through one asset above all: its Lytton refinery in Brisbane. In the first half of 2026, the refinery's earnings leapt from almost nothing to more than half a billion dollars as Supply disruptions in the Middle East, tight regional inventories and delays to Russian diesel flows pushed refining margins to levels rarely seen.

A record half built on Lytton

Ampol its half-year results to 30 June on 24 August. Group replacement cost operating profit (RCOP) EBITDA rose 152 per cent to $1,637.1 million, and RCOP EBIT climbed 245 per cent to $1,391.7 million. RCOP net profit after tax, excluding significant items, jumped to $857.2 million from $180.2 million a year earlier. Statutory net profit reached $1,363.4 million, compared with a loss of $25.3 million in the first half of 2025, helped by inventory gains.

The clear standout was Lytton. The refinery's RCOP EBIT surged to $533.4 million from just $1.1 million in the prior corresponding period. The Lytton Refiner Margin, Ampol's key measure of how much it earns processing each barrel, averaged US$28.26 a barrel, compared with US$7.44 a barrel a year earlier. Lytton production also rose 8.7 per cent.

Ampol said conditions stayed higher into the second half, with the Lytton Refiner Margin averaging US$27.11 a barrel in July.

Why the margins exploded

Refining margins widen when fuel products become scarcer relative to crude oil. Ampol, uncertainty over Middle East shipping routes, delays to Russian diesel exports and historically low regional stocks of refined products all supported margins in the half.

Lytton is one of only two fuel refineries still operating in Australia, alongside Viva Energy's Geelong plant, after the closures of Kurnell, Bulwer Island, Kwinana and Altona over the past decade. has put Lytton's capacity at about 109,000 barrels a day, which gives Ampol meaningful volumes to sell into a tight market.

Fresh Volatility this month has kept the issue alive. Brent Crude rose to about US$107.82 a barrel on 14 September after a drone attack forced the temporary shutdown of Saudi Arabia's East-West Pipeline, reported. The has warnings that depleted global stockpiles could push oil towards US$150 a barrel.

More than a refinery

Ampol's earnings lift is not limited to Lytton. Its Fuels and Infrastructure Australia division lifted RCOP EBIT 123 per cent to $309.3 million, while the international trading and shipping arm contributed $307.5 million. Convenience Retail EBIT rose 12 per cent to $204.5 million. New Zealand Business Z Energy was weaker, with EBIT down 16 per cent to $103.8 million.

The company also completed its $1.165 billion Acquisition of EG Australia's fuel and convenience network at the end of June, and expects annual synergies of $65 million to $80 million within two years.

Shareholders are sharing in the gains. Ampol declared a fully franked Interim Dividend of 185 cents per share, payable on 30 September. Net Debt rose to $3,523 million, reflecting the EG acquisition, and the Leverage Ratio stood at 1.8 times adjusted net debt to EBITDA.

How Ampol differs from Viva

FAQs

Q: What drove Ampol's first-half earnings increase?

A: Higher refining margins at the Lytton refinery were a major contributor.

Q: What was Lytton's first-half RCOP EBIT?

A: Lytton recorded RCOP EBIT of AUD 533.4mn.

Q: What was the average Lytton Refiner Margin?

A: It averaged US$28.26 a barrel in the first half.

Q: What other transaction did Ampol complete?

A: Ampol completed its acquisition of EG Australia's fuel and convenience network.

Download Free Report – Explore 3 Stock Ideas & Industry Insights

Unlock 3 stock ideas and key industry insights in our free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice.

All investments involve risk—consider independent advice before making any investment decisions.

View 3 Research Reports

Disclaimer:

This article (“Article”) has been prepared by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and its related bodies corporate who are authorised to provide general financial product advice. Kalkine.com.au and its associated pages are published by Kalkine.

Any information/advice provided in this article is general in nature and does not take into account your objectives, financial situation or needs. You should therefore consider whether the information is appropriate for your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Memorandum or other offer document (“Offer Document”) for the securities or other financial products referred to in Kalkine articles. You should obtain a copy of the Offer Document and consider it before making any decision about whether to acquire the security or financial product.

Kalkine strongly recommends that you seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) before acting on any advice/information in this Article or on the Kalkine website. Not all investments are appropriate for all people.

The information in this Article and on Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of the information contained in its articles (including this Article), newsletters and websites. All information represents our views at the date of publication and may change without notice.

The information in this Article does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products.

Kalkine does not issue, sell or deal in any financial products.

This Article may contain information on past performance of particular investments. Please note past performance is neither an indicator nor a guarantee of future performance.

To the extent permitted by law, and excluding any dishonesty or gross negligence by Kalkine, Kalkine disclaims and excludes all liability for any direct, indirect, implied, punitive, special, incidental or other consequential loss or damage arising from the use of or reliance on this Article, the Kalkine website and any information published on the Kalkine website without any warranties or representations by Kalkine to you. To the extent the law prohibits or limits this exclusion, Kalkine limits its liability to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

Employees and/or associates of Kalkine and its related entities may hold interests in the securities or other financial products covered in this Article or on the Kalkine website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.

Some of the images/music that may be used in the Article are copyright to their respective owner(s). Kalkine does not claim ownership of any of the pictures displayed/music used in the Article unless stated otherwise. The images/music that may be used in the Article are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.