CAO's net plunges 66.5% to US$7.32m in third quarter
Operating loss swells fivefold from Q3 2013 to US$7.54m this year
Singapore
CHINA Aviation Oil (Singapore) (CAO) has posted a 66.5 per cent drop in net profit to US$7.32 million for the third quarter, weighed down by operating losses and lower contribution from its associates. The jet fuel trader incurred an operating loss of US$7.54 million in Q3 2014 - about five times the US$1.53 million loss incurred in the corresponding quarter in 2013.
The operating loss was mainly due to a lower US$2.84 million in gross profit, compared with US$7.12 million in the same period last year. This was mostly attributable to losses incurred in trading of other oil products as demand for fuel oil remained depressed.
The share of profit from its associates fell 36.8 per cent to US$15.2 million for the three months ended September 2014. Total revenue rose 30.3 per cent to US$4.78 billion, largely due to the increase in trading volume of jet fuel and other oil products, but was still lower than the cost of sales.
Earnings per share for three months from July was 0.85 US cent, down from the 2.54 US cents in Q3 last year. For the first nine months of the year, earnings per share was 5.20 US cents, lower than the 6.59 US cents in the same period last year.
Net asset value per share for the group stood at 64.21 US cents at end- September 2014, down from 73.04 US cents at the end of last December.
No dividend was declared.
China Aviation's counter closed one Singapore cent higher at S$0.75, before the release of its results on Thursday.
