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China Aviation Oil Q3 profit slides 8% to US$18.93m

JET fuel trader China Aviation Oil (Singapore) (CAO) turned a profit of US$18.93 million for the third fiscal quarter ended Sept 30, 2018, down 7.99 per cent from a restated US$20.57 million in the year-ago period mainly due to lower contributions from associates.

Revenue climbed 21.24 per cent to US$6.33 billion from US$5.22 billion a year ago, boosted by higher oil prices.

Earnings per share clocked 2.20 US cents for Q3, down from a restated 2.39 US cents for the same period last year.

Total supply and trading volume fell 22.21 per cent, or 2.99 million tonnes to 10.47 million tonnes for the third quarter compared to 13.46 million tonnes last year.

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Volume for middle distillates fell by 1.53 per cent, or 0.08 million tonnes to 5.14 million tonnes from 5.22 million tonnes in the same period last year. Out of which, the volume of jet fuel supply and trading dipped by 0.45 million tonnes to 3.99 million tonnes for Q3 2018 versus 4.44 million tonnes for Q3 2017.

Meanwhile, trading volume for gas oil in Q3 rose 47.44 per cent to 1.15 million tonnes from 0.78 million tonnes last year. Trading volume for other oil products was lesser by 2.91 million tonnes to 5.33 million tonnes for Q3 2018 compared with 8.24 million tonnes in Q3 2017, due mainly to the decrease in trading volume for fuel oil.

"Notwithstanding the uncertainties in the oil markets and global economic and geopolitical outlook, CAO will continue to build on our stable jet fuel supply business leveraging on the growth in China's civil aviation industry and expanding our aviation marketing business outside of mainland China," said CAO's chief executive Wang Yanjun.

"With vigilant risks control and management, we will continue to expand our global jet fuel supply and trading network complemented with trading in other oil products as well as continue to seek opportunities for expansion through investments in synergetic and strategic oil-related assets and businesses," Mr Wang said.

CAO rose 1.45 per cent, or two Singapore cents to S$1.40 as at 1.39pm on Thursday.