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Ampol has been the best performer on the ASX200 today after reporting strong a quarterly result amid a wider oil price surge.
The company formerly known as Caltex Australia was up 6 per cent at $25.87 and earlier hit a more than six-week high of $25.97.
The rise came as the wider energy sector was helping the market limit losses on Thursday, after oil prices climbed to their highest in a month.
Ampol shares were surging in early trade after a strong March quarter result, with the wider energy sector also rising. Credit:
Ampol said group replacement cost of sales earnings rose to $150 million for the March quarter, excluding significant items, which easily beat RBC Capital Markets estimates.
That quarterly figure was up from $142 million a year ago, and an improvement on the $122 million announced in the December quarter.
RBC said Ampol’s beat was driven by convenience retail, where shop performance continued to outperform 10 per cent above the prior corresponding period.
“We had forecast a normalisation of shop revenues following the positive tailwinds associated with the covid pandemic on shop sales,” RBC said.
“Shop performance has been underpinned by management of controllables particularly wastage and site costs.”
RBC noted 109 Caltex Australia sites had been rebranded to Ampol at the end of March, with site volumes performing in line with the surrounding network.
An additional five metro sites are planned to be delivered into the network during the second quarter, with a further 15 planned for the second half.
Ampol’s quarterly jet fuel volumes were down 53 per cent, gasoline volumes down 21 per cent and diesel volumes down 8 per cent on a year ago, all broadly in line with forecasts.
Ampol said earnings at its Lytton refiner in Brisbane were breakeven for the quarter, with ongoing weakness in regional refining margins.
It said it remains on schedule to conclude and communicate the outcomes from the Lytton refining review in the second quarter.
RBC said there was a strong likelihood of Lytton being converted into an import terminal.
“We think this would provide multiple expansion underpinned by a more predictable earnings base,” it said.