China Aviation Oil (Singapore) Corporation, the purchaser of jet fuel, announced it posted a net profit attributable to shareholders of US$12.9 million ($18 million) for the first quarter ended 31 March 2010 (1Q 2010), an increase of 213.2% as compared to the corresponding period last year.

CAO says the significant increase in net profit was mainly due to a sharp reversal of net loss incurred by CAO’s principal associated company, Shanghai Pudong International Airport Aviation Fuel Supply Co., Ltd (SPIA) in 1Q 2009. Compared to 4Q 2009, CAO’s net profit increased 21.8%, mainly due to higher gross profit and lower operating expenses.

The group’s share of profit in SPIA for 1Q 2010 was US$7.47 million, compared to a net loss of US$2.90 million in 1Q 2009. SPIA had incurred losses in 1Q 2009 as a result of higher cost of sales due to the sharp decline in oil prices in the second half of 2008. SPIA returned to profitability following the full consumption of high-cost inventories in April 2009.

Total supply and trading volume for jet fuel and other oil products was 1.46 million tonnes in 1Q 2010, slightly higher than 1.42 million tonnes in 1Q 2009. Total jet fuel supply and trading volume (which includes jet fuel procured and supplied to China and international jet fuel trading of 1.34 million tonnes in 1Q 2010 was marginally lower than 1.4 million tonnes in 1Q 2009.

CAO says it will continue to adopt a prudent approach as it continues to grow its trading business and expand its portfolio of oil-related assets.