China Aviation Oil takes flight to record earnings

SINGAPORE (Nov 4): DBS Group Research has reiterated its “buy” recommendation for China Aviation Oil, after the jet fuel traded posted an unexpected 31% earnings growth to US$23.2 million ($32.2 million) in 3QFY16.

The earnings boost came from one-offs like mark-to-market inventory gains and favourable currency movements among the group’s associates.

In particular, Yong noted that CAO’s 33% owned associate, Shanghai Pudong International Airport Aviation Fuel Supply Company (SPIA), had contributed 74.9% of CAO’s group earnings, or US$17.4 million. The associate’s outlook also remains positive, as SPIA is the exclusive supplier of jet fuel to Pudong

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