SINGAPORE (Nov 1): China Aviation Oil (Singapore) Corporation, the largest physical jet fuel trader in the Asia Pacific region, announced an 8% decrease in 3Q earnings to US$18.93 million ($26.1 million), mainly due to lower contributions from associates.

Share of profits for 3Q18 from associates was US$17.50 million compared to US$21.51 million for 3Q17, a decrease of 18.67% mainly due to lower profit contributions from Shanghai Pudong International Airport Aviation Fuel Supply Company (SPIA) and OKYC (Oilhub Korea Yeosu Co).

Total 3Q18 revenue increased by 21.24% to US$6.3 billion for 3Q18 from US$5,2 billion for 3Q17, attributable primarily to higher oil prices even though total supply and trading volume decreased by 22.21% to 10.47 million tonnes for 3Q18 compared to 13.46 million tonnes for the 3Q17.

Total gross profit more than doubled to US$11.08 million for 3Q18 mainly due to higher jet fuel volume supplied to China and higher profits from trading and optimisation activities.

3Q18 other operating income decreased by 89.82% to US$0.08 million, mainly attributable to higher interest income partially offset by foreign exchange loss compared to foreign exchange gain for 3Q17.

Total expenses in 3Q18 increased by 77.37% to US$8.23 million for 3Q17.

Nevertheless, the weaker 3Q18 bottomline brings 9M18 earnings to US$75.13 million, 7.62% higher from a year ago due mainly to higher gross profit and profit contributions from SPIA.

China Aviation says concerns over trade wars, geopolitical tensions as well as global economic uncertainties are expected to further exacerbate the volatility in oil prices and heighten risks in trading.

Year to date, shares in China Aviation are down 17.4% to $1.38.

China Aviation Oil reports 8% fall in 3Q earnings to $26 mil on lower contributions from associates

MSCI boss warns of climate risks

Keppel to acquire 50% stake in European asset manager Aermont Capital for up to $517 mil

Local banks 'resilient' in 2023, but MAS warns of deteriorating asset quality, climate transition risks

The new kings and queens of content

Singapore’s headline and core inflation figures increase to 4.7% and 3.3% in October

UOB Kay Hian lowers MPACT’s TP, DPU on lower contributions from China and further depreciation on forex

Matter of time before Straits Times Index stages rally

About 62.5% of shares in VTAC have been redeemed prior to the despac

China Aviation Oil reports 8% fall in 3Q earnings to $26 mil on lower contributions from associates

Related News

Highlights

MSCI boss warns of climate risks

Related News

China Aviation Oil fuels up for next growth stage

CAO posts 13.2% growth in 4Q19 earnings following increase in supply of jet fuel

China Aviation reports 2.9% dip in 2Q earnings of US$28.4 mil on higher expenses