Updates with more details, analyst comments and share moves

By Aaditya GovindRao and Adwitiya Srivastava

April 16 (Reuters) - Australia's top fuel retailer Ampol ALD.AX reported a 49% drop in first-quarter refining margins for its Lytton refinery in Queensland on Wednesday, citing lost production due to Cyclone Alfred and weak refining margins in Singapore — a bellwether for Asia.

Shares of the company fell as much as 2.1% to hit their lowest level since April 9, as of 0415 GMT.

Ampol said its Lytton refinery margin decreased to $6.07 per barrel in the first quarter, down from $11.80 last year, largely due to depressed refining profits in Singapore.

Gasoil refining margins in Asia collapsed to the lowest in nearly three years toward the end of 2024 as excess supply and persistently soft derivative markets depressed prices.

Ampol also cited the impact of Cyclone Alfred, which increased demurrage costs due to a damaged crude tank roof.

The Lytton Refinery, one of Ampol's key assets, endured around ten days of lost production due to proactive measures taken to secure the facility before the cyclone made landfall. The refinery's quarterly output dropped 5.7% to 1.30 billion litres.

Oil refiners have been facing a slump in profitability because of slowing economic growth and the rising penetration of electric vehicles in China. New refineries coming online across Africa, the Middle East and Asia have also put downward pressure on margins.

If the slump in refinery margins continues for the full second quarter, Ampol would be eligible for payment under Australia's Fuel Security Services Payment program, "providing downside protection in a period of global refining market weakness", the Sydney-based firm said.

On the other hand, Ampol's Australian convenience retail segment saw a mid-single-digit percentage growth in earnings, bolstered by improved fuel margins and in-store execution strategies, it said.

"Putting aside the short term cyclone impact, ALD’s Convenience Retail business is performing well on its premium fuel strategy and store refresh program, together with the $50m cost-out program," analysts at Sandstone Insights said in a note.

(Reporting by Aaditya Govind Rao and Adwitiya Srivastava in Bengaluru; Editing by Maju Samuel and Alan Barona)

((Aaditya.GovindRao@thomsonreuters.com))