The Ampol Ltd (ASX: ALD) share price is trading lower following the release of its unaudited third quarter result this morning.
At the time of writing the fuel retailer's shares are down 0.5% to $24.99.
How did Ampol perform in the third quarter?
The three months ended 30 September were once again tough for Ampol, which was formerly known as Caltex.
According to the release, on a replacement cost of sales operating profit (RCOP) basis, Ampol delivered third quarter RCOP earnings before interest and tax (EBIT) of $58 million. This was down 26.5% from the second quarter and 62.3% on the prior corresponding period.
RCOP excludes the unintended impact of the fall or rise in oil and product prices. The company believes this presents a clearer picture of its underlying business performance.
Things weren't any better on the bottom line, with RCOP net profit after tax coming in at $24 million. This was down 40% from the second quarter and 74.4% from a year earlier.
What was dragging on Ampol's performance?
The company's Lytton refinery was the key reason for Ampol's weaker profits during the third quarter.
Lytton posted an $82 million loss before interest and tax, which led to its Fuels & Infrastructure segment posting a $19 million loss.
This took the gloss off a strong performance by its Convenience Retail business, which delivered EBIT of $87 million. This was more than double what it achieved in the prior corresponding period ($41 million) and over triple its third quarter EBIT of $23 million.
Management advised that this was reflective of favourable industry retail fuel margins, strong shop performance, and solid management of controllable costs.
Ampol's Managing Director and CEO, Matt Halliday, commented: "The resilient performance of our integrated business in the third quarter, particularly in Convenience Retail, was pleasing considering weak economic conditions and the continued impacts of COVID-19 on hydrocarbon demand. Our focus remains on optimising value across our integrated supply chain against prevailing market conditions to maximise value for shareholders."
