China Aviation Oil H2 profit falls 8.1% to US$36 million

CHINA Aviation Oil (CAO) reported a 8.1 per cent fall in net profit to US$36 million for the second half ended Dec 31, from US$39.1 million in the previous corresponding period.

This was mainly attributed to a decrease in gross profit, partially offset by a fall in expenses, said the jet fuel trader on Thursday (Feb 27).

Gross profit for the period was US$17.7 million, down 55.7 per cent from US$40 million in the prior year due to lower gains from jet fuel supply and trading of other oil products.

Earnings per share stood at US$0.0418 for the half-year period, down 8.1 per cent from US$0.0455 the previous year.

Revenue fell slightly by 2.1 per cent to US$8 billion from US$8.2 billion, on the back of a decline in oil prices.

CAO proposed a final dividend of S$0.0372 per share for FY2024, compared with a S$0.0271 per share final dividend and a one-off special cash dividend of S$0.0234 per share for FY2023. The payment date and record date are to be announced in due course.

For the full year, net profit rose 33.1 per cent to US$78.4 million from US$58.9 million. Revenue rose 7.6 per cent to US$15.5 billion from US$14.4 billion, on the back of a rise in business volume.

The group highlighted that its financial position “strengthened considerably”, maintaining no interest-bearing debt. Its cash and cash equivalents balance as at end-December rose to US$500.3 million from US$373 million previously.

Lin Yi, chief executive of CAO, expressed cautious optimism about the group’s medium-term outlook.

SEE ALSO

China Aviation Oil H1 profit doubles to US$42.4 million on oil price, business volume increases

China Aviation Oil seeks November jet-fuel deliveries to China in a rare move: sources

He said the industry outlook “remains bright” as growth trends accelerate in the aviation industry and the low-carbon business brings about new opportunities.

Shares of CAO were down 4.2 per cent or S$0.04 at S$0.905 as at 1.01 pm on Thursday.