China Aviation Oil (Singapore) has reported lower earnings of US$33.2 million for FY2022, down 17.8% over the preceding year ended Dec 31 2021.
The company, known for supplying jet fuel from its base at Shanghai's main airport, reported lower revenue of US$16.5 billion for the year, down 6.65% over FY2021, on lower supply and trading volume.
During the year, total volume dropped 40.60% to 20.26 million metric tonnes for FY 2022, reflecting the easing of economic activities in China.
Lin Yi, CAO's CEO, says that despite the FY2022 drop, the company continues to position itself for long-term sustainable growth.
"While most pandemic restrictions have eased and global travel has picked up, uncertainties including ongoing geopolitical tensions, rising inflation and recessionary fears continue to put pressure on the global economy.
"Despite these daunting challenges, the group's strong financial position and experienced management places us in good stead to deliver sustainable returns to our
shareholders," he adds.
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"The progressive recovery of the global aviation industry boosted by the reopening of China’s borders bodes well for CAO’s future performance as we actively leverage on this
recovery trend and seek out opportunities for strategic expansion through investments in synergetic and strategic oil-related assets and businesses," says Lin, who expects the company to remain profitable for the current FY2023.
The company plans to pay a final dividend of 1.6 cents.
As at trading break on Feb 28, CAO changed hands at 94 cents, up 1.08%.
