China Aviation Oil H2 profit up 182% to US$39.1 million amid air travel recovery

CHINA Aviation Oil (CAO) registered a 182 per cent rise in net profit to US$39.1 million for its second half year ended December, from US$13.9 million in H2 FY2022. This was mainly attributed to a higher gross profit, other operating income and share of results from associates, partially offset by an increase in expenses, said the jet fuel trader on Thursday (Feb 29).

Total gross profit was US$40 million for the period, up 188.3 per cent on the year due to higher gains from jet fuel supply and trading of other oil products. Other operating income was US$9.1 million, a 347.3 per cent increase compared with US$2 million for H2 FY2022, mainly due to higher interest income.

Earnings per share stood at US$0.0455 for the half year, up from US$0.0161 the previous year.

Revenue for H2 rose 13.6 per cent to US$8.2 billion, from US$7.2 billion a year earlier. This was mainly due to the increase in total supply and trading volume.

CAO proposed an ordinary dividend of S$0.0271 per share and a one-off special cash dividend of S$0.0234 per share for FY2023, compared with a S$0.016 per share final dividend declared in FY2022. The payment date and record date are to be announced in due course.

For the full year, net profit was up 75.5 per cent to US$58.9 million from US$33.5 million in FY2022. Revenue for the year, however, dropped 12.4 per cent to US$14.4 billion from US$16.5 billion, as oil price and trading volume fell.

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The group highlighted its healthy financial position as at Dec 31, 2023, with no interest-bearing debt. Its cash and cash equivalents balance also rose 21 per cent to US$373 million.

Lin Yi, chief executive officer of CAO, noted that travel recovery in key markets such as China is expected to drive the group’s performance in the near term. “In the months ahead, the group will remain prudent in managing market risks and stay committed to strengthening operational resilience, and building on jet fuel supply and trading network, complemented with trading in other oil products. The group will also continue to focus on long-term profitability by seeking opportunities for strategic expansion through investments in synergetic and strategic oil-related assets and businesses,” Lin added. 

Shares of CAO : G92 0% were trading up 1.1 per cent, or S$0.01, at S$0.94 as at 1.25 pm on Thursday.