SINGAPORE (May 9): China Aviation Oil, the physical jet fuel trader, reported earnings for the 1Q18 ended March increased 13.88% to US$26.91 million ($36.1 million) from a year ago, mainly contributed by a higher share of results from its associated companies.
Correspondingly, earnings per share came in at 3.13 US cents in 1Q18 versus 2.75 US cents in 1Q17.
With the onset of higher oil prices, revenue for 1Q18 surged 23.9% to US$4.10 billion from US$3.31 billion a year ago. In 1Q18, total supply and trading volume increased by 4.40% to 7.59 million tonnes, compared to 7.27 million tonnes in 1Q17.
For 1Q18, CAO’s gross profit decreased by 14.61% to US$13.21 million compared to US$15.47 million in 1Q2017 due mainly to lower profits from its trading and optimisation activities.
On the back of higher profit contributions from CAO’s key associate - Shanghai Pudong International Airport Aviation Fuel Supply Company (SPIA), CAO’s share of profits from associates surged 40.71% to US$20.97 million in 1Q18 from US$14.90 million in 1Q17.
Share of profits from SPIA increased by 45.95% to US$18.90 million from US$12.95 million in 1Q17, mainly attributable to higher refuelling volumes, other operating income and foreign exchange gain.
Profit contributions from Oilhub Korea Yeosu Co. (“OKYC”), which was operating at full capacity as at the end of 1Q18, was 6.89% higher at US$1.43 million in 1Q18 as compared to US$1.34 million in 1Q17 due to higher profit generated from its tank storage leasing activities.
Share of profits from China National Aviation Fuel TSN-PEK Pipeline Transportation Corporation (TSN-PEKCL) decreased by 21.99% from US$0.78 million in 1Q17 to US$0.61 million in 1Q18 mainly due to higher operating expenses.
Share of loss from CAO’s associated company CNAF Hong Kong Refuelling (CNAF HKR) narrowed to US$0.17 million in 1Q18 from US$0.21 million in 1Q17.
Meng Fanqiu, CEO of CAO, says the group will continue to be proactive in our efforts to seek expansion opportunities through investments in synergistic and strategic oil-related assets and businesses.
Shares in CAO closed at $1.56 on Wednesday.
