China Aviation Oil (Singapore) Corporation, the largest physical jet fuel trader in the Asia Pacific region, today announced a net profit of US$18.2 million ($22.5 million) for the fourth quarter ended 31 December 2012, which represents an increase of 219% as compared to 4Q 2011.
The significant year-on-year increase in 4Q net profit was mainly due to higher profit contribution from associated companies and lower operating expenses. 4Q 2011 financial results included a one-off provision for doubtful debts relating to monies placed with the now defunct MF Global Singapore. Excluding this one-off provision, 4Q 2012 net profit increased approximately 82% year-on-year.
For the full-year ended 31 December 2012 (FY2012), CAO’s net profit was US$66.2 million, an increase of 4.4% compared to FY 2011. The increase was mainly attributable to: (i) higher gross profit due to higher gains from oil trading activities and consolidation of contributions from the Group’s wholly owned subsidiaries acquired in 1Q 2012; and (ii) higher profit contribution from associated companies.
The board of directors has proposed a tax-exempt first and final dividend of $0.02 per share for approval by shareholders at the forthcoming annual general meeting.