Aviation oil trader CAO's Q1 net profit down 8.5%
Updated: 2014-04-26 16:49
SINGAPORE - The net profit of Singapore- listed China Aviation Oil (Singapore) Corporation Ltd (CAO) registered a slight fall of 8.5 percent on year in the first quarter (Q1) to $19.7 million, the group announced on Friday.
On quarter-on-quarter basis, the net profit surged 45.8 percent from the fourth quarter (Q4) last year. It was mainly due to higher gross profit resulting from higher gains from oil trading activities and lower operating expenses during the quarter.
During the Q1, the company registered a total supply and trading volume for jet fuel and other oil products to 4.6 million tons, up 21 percent on year. It was mainly driven by higher trading volume of other products from 1.2 million tons in last Q1 to 2.5 million tons in this Q1.
Supported by higher trading volume of other oil products, the aviation oil trader reported revenues of $4.0 billion in Q1, a slight 6.5 percent expansion on year.
Share of profits from associates is another main source for the net profit of CAO. In Q1 this year, the profits from the associates expanded by 18 percent on year, from $8.2 million to $9.6 million. It was mainly from the company's key associated company, Shanghai Pudong International Airport Aviation Fuel Supply Company.
Meng Fanqiu, chief executive officer of the group, said that China's civil aviation industry is expected to maintain its double digit growth. "Our diversification and expansion into other oil products and geography will bring about greater synergy and returns for our core supply and trading businesses," he said.
CAO is one of the largest physical jet fuel traders in the Asia Pacific region and the sole supplier of imported jet fuel to the civil aviation industry of China. CAO and its wholly owned subsidiaries also supply jet fuel to airports outside China, including Asia Pacific, Europe, North America and the Middle East.