China Aviation Oil Q3 net profit soars 31% to US$23.2 million

SINGAPORE - Physical jet fuel trader China Aviation Oil (Singapore) Corporation (CAO) said its third-quarter net profit soared by 31 per cent to US$23.2 million (S$32.2 million), backed mainly by increased contributions from associates and joint-venture companies.

Revenue for the three months ended Sept 30 surged 64.2 per cent to US$3.9 billion on the back of higher total supply and trading volume.

Total supply and trading volume for middle distillates and other oil products rose 84.6 per cent to 10.67 million tonnes.

On a segmental basis, the volume of jet fuel supply and trading volume increased 35.2 per cent to 4.15 million tonnes while the trading volume of other oil products rose 118.8 per cent to 5.47 million tonnes.

CAO reported a 100.4 per cent jump in share of profits from associated and joint-venture companies to US$19.5 million, mainly as a result of higher contributions from Shanghai Pudong International Airport Aviation Fuel Supply Company (SPIA) and Oilhub Korea Yeosu Co (OKYC).

Contributions from SPIA, CAO's key associate, soared 76.3 per cent to US$17.4 million, lifted by higher refuelling volumes and higher oil prices in the quarter under review.

OKYC, which currently operates at full capacity, contributed US$1.4 million during the quarter, backed by strong tank storage leasing activities and favourable mark-to-market gains from its cross currency interest rate swap contracts.

Earnings per share rose to 2.70 US cents from 2.06 US cents previously while net asset value per share firmed to 74.6 US cents compared to 68.9 US cents as at Dec 31.

"Our stellar financial performance year-to-date is testament to CAO's successful efforts in pursuing our global strategy of diversification, supported by our investments in strategic regional oil-related businesses," said CAO chief executive officer Meng Fanqiu.

Notwithstanding the uncertainties in the global oil markets, CAO continues to benefit from the robust growth in China's civil aviation industry and the global aviation industry and CAO is well positioned to further expand its aviation marketing business outside of China and diversify its trading business activities through building a global jet fuel supply and trading network as well as trading in other oil products.

CAO said it will continue to seek opportunities to further expand its investments in synergetic and strategic oil-related assets and synergetic businesses.

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