SINGAPORE (Feb 23): Jet fuel trader China Aviation Oil (Singapore) announced a 45.1% increase in FY16 earnings to US$88.9 million ($125.7 million), backed by higher gross profit and increased contributions from the group’s associated companies.
FY16 revenue rose 30.2% to US$11.7 billion from a year ago, mainly attributable to the increase in supply and trading volumes.
Total supply and trading volumes for middle distillates and other oil products jumped 61.5% on-year to reach a record 32.6 million tonnes in FY2016.
Gross profit for FY16 was US$44.1 million, a 24.3% increase compared to US$35.4 million for FY15 on higher supply and trading volumes as well as higher gains from trading and optimisation activities.
The group’s share of profits from its investments in oil-related assets also increased by 56.9% to US$66.4 million, boosted by higher share of profits from the group’s key associate, Shanghai Pudong International Airport Aviation Fuel Supply Company.
The group has proposed a one-tier, tax-exempt, first and final dividend of 4.5 cents per share for FY16. This is higher than the FY15 dividend of 3 cents per share.
Meng Fanqiu, Chief Executive Officer of China Aviation Oil, said, “Despite the global economic and geopolitical uncertainties in the coming year, the Group aims to further expand CAO’s aviation marketing business outside of mainland China. We will continue to build a global supply and trading network and continue to explore investments and M&A opportunities in strategic oil-related assets and businesses across the value chain that offer synergies with our trading businesses in Asia Pacific, North America and Europe.”
Shares of China Aviation Oil closed 1 cent higher at $1.51 before the results announcement.
