Australia's Ampol flags additional costs for Lytton refinery repairs post cyclone

Reuters
03-25
UPDATE 1-Australia's Ampol flags additional costs for Lytton refinery repairs post cyclone

Recasts first paragraph, add further details from paragraph 2

March 25 (Reuters) - Australia's Ampol ALD.AX on Tuesday flagged additional costs of about A$35 million ($21.99 million) from the repairs of its flagship Lytton refinery in Queensland, which is now operating at normal production rates following Cyclone Alfred's landfall.

Heavy winds and rain have damaged a crude storage tank that is currently undergoing repairs, the fuel retailer said.

The restart was completed over the weekend and the refinery is now operating with three other crude tanks in service.

Ampol estimates the floating roof repair will cost around A$20 million, with increased demurrage or storage costs of about A$5 million per month for three months until the supply chain is optimised.

Insurance is expected to cover about half of these costs, the company said.

($1 = 1.5913 Australian dollars)

(Reporting by Sneha Kumar in Bengaluru; Editing by Shreya Biswas)

((Sneha.Kumar@thomsonreuters.com;))

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