CAO posts 13.2% rise in Q4 profit to US$21.2m

JET fuel trader China Aviation Oil (Singapore) (CAO) posted a 13.2 per cent rise in net profit to US$21.2 million for its fourth quarter ended Dec 31, 2019, from US$18.7 million a year ago.

This was mainly due to an increase in gross profit, resulting from higher gains from the supply of jet fuel to China, and from trading and optimisation activities, the group said in a regulatory filing on Wednesday.

Earnings per share stood at 2.46 US cents for the quarter, up from 2.18 cents a year ago.

Revenue for Q4 was up 16.6 per cent to US$5.1 billion, from US$4.38 billion a year ago, mainly due to an increase in fuel volume.

CAO's board has proposed a final cash dividend of 4.7 Singapore cents per share, up from 4.5 cents a year ago, for shareholders' approval at a forthcoming annual general meeting, with the payment date to be announced later.

For the full year ended Dec 31, net profit was up 6.4 per cent to US$99.8 million, while revenue was down 1.3 per cent to US$20.34 billion.

CAO chief executive and executive director Wang Yanjun said the group will continue to leverage its core competencies to expand its presence globally.

For other oil products, CAO will continue to build structural advantages globally. This will be complemented by opportunities to acquire or invest in synergistic businesses or assets to sustain and accelerate growth, he added.

As at 12.43pm, CAO shares were trading at S$1.15, down S$0.02 or 1.7 per cent, after the results were announced.