China Aviation Oil posts 65% jump in Q3 gain, thanks to higher share of profits of associates

China Aviation Oil (Singapore) reported a 65 per cent jump in third quarter net profit to US$21.8 million (S$27.3 million), thanks to better contributions from share of results of associates.

The share of profits jumped to US$24 million from US$7.2 million, mainly attributable to the increase of US$14.2 million on the share of profits in Pudong of US$20.8 million. The increase in share of results of Pudong was mainly attributable to a one-off credit of US$11.9 million resulting from the reversal of provision for past claims relating to customs duties and value added tax.

Revenue for the three months to Sept 30 fell by 3.1 per cent to US$3.67 billion.

This was mainly attributable to lower trading volume and product mix.

Gross profit derived from jet fuel supply and trading, and trading of other oil products fell by 32.1 per cent to US$7.1 million, mainly due to lower gain from jet fuel supply and trading and higher cost of sales while trading of other oil products generated higher profits.

Earnings per share swelled to 3.04 US cents from 1.85 US cents previously while net asset value per share climbed to 70.77 US cents compared to 64.16 US cents as at Dec 31.