Ampol Limited reported an update on its Lytton refining operations.
As a result of an issue with the slide valve in its Fluidised Catalytic Cracking Unit (FCCU), Ampol has temporarily shut down the FCCU to perform maintenance on the valve.
Ampol anticipates that the FCCU will be back in service in early May after repairs are completed, and steady-state operations are achieved. At this time, the refinery will continue to operate, producing diesel and jet fuel, with the impact primarily limited to gasoline production.
According to Ampol, it does not expect any disruption in client supply, with the finished replacement product now being secured through its Trading and Shipping capability.
Based on previous product crack spreads, the impact of the outage on EBIT is projected to be in the $30-50 million range, including the cost of repair and lost opportunity cost from gasoline sales at higher product cracks.
Ampol added that market circumstances have remained favourable since the market update on 20 February 2023, resulting in a great start to the year for Ampol’s integrated business.
Ampol will provide more information in its first-quarter trading update on 27 April 2023.
