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CEFC posts Q3 profit of US$11.97m
CEFC International's profit attributable to equity holders rose from US$661,000 a year ago to US$11.97 million for the third quarter ended September.
Revenue rose 73 per cent year-on-year to US$162.3 million for Q3 2015. This was due to higher trading volume brought by the partnership that the company entered into with a subsidiary of CEFC China Energy Limited (CEFC China) in September to serve as its exclusive overseas procurement and supply platform. The new derivatives trading business also contributed to the revenue growth.
Zang Jian Jun, executive chairman of CEFC International, said: "While the government data indicates that demand for certain petroleum products in China has seen healthy growth, other dynamics on the market, including the weak and volatile oil prices, the lower barrier to entry and more price transparency in trading, have resulted in intense competition. In an effort to preserve and enhance our competitive advantage, we focused on building our fundamentals and introduced a series of strategic actions during the past quarter."
He added: "We are committed to the strategy of exploring opportunities and making investments in the midstream and downstream assets in the petroleum industry, so as to build up the physical infrastructure and provide increasing flexibility for traders to access unique profit pools. With reference to the disclosure in our previous announcements, we have been in discussion regarding potential investments along the industry chain during the past quarter, and the evaluation of the projects is still ongoing."