SINGAPORE (July 27): China Aviation Oil (Singapore) Corporation announced earnings of US$24.6 million ($33.4 million) for 2Q17 ended June, up 4.1% from its earnings of US$23.6 million a year ago.
For 1H17, group earnings rose 4.4% to US$50 million compared to US$47.8 million in 1H16.
Revenue for the quarter surged 21.5% to US$3.7 billion, due partially to an increase and trading volume. While revenue from middle distillates grew 21.8% to US$2.5 billion from US$2 billion a year ago, revenue from other oil products surged 21.5% to US$3.7 billion compared to US$3 billion in 3Q16.
Gross profit derived from jet fuel supply and trading of middle distillates and other oil products was US$10.57 million, growing 6.71% from US$9.90 million in 2Q16, on the back of higher profits from trading and optimisation activities.
Other income ended at US$1.21 million in 2Q17 compared to just US$0.32 million in 2Q16, due mainly to higher bank interest income, particularly derived from time deposits placed with banks and financial institutions.
Total expenses fell by 8.28% to US$4.43 million compared to US$4.83 million a year ago, mainly attributable to lower professional fees incurred for business development.
However, share of profits from associates in 2Q17 fell 5.49% to US$18.30 million compared to US$19.37 million in 2Q16 on lower profit contributions from Pudong.
In spite of intensifying volatility in oil prices in 2Q17 with persistently high crude oil and gasoline inventories, Meng Fanqiu, CEO of CAO, says the group has delivered a commendable set of results for the first half of the year.
“The group remains focused on further expanding our aviation marketing business beyond China given the compelling growth prospects in the civil aviation industry globally. The group will continue to proactively expand our global jet fuel supply and trading network, as well as actively explore trading opportunities in other oil products and diversify our business activities,” says Meng.
“Looking ahead, the group will continue our active pursuit of opportunities that will further propel our investments in synergistic and strategic oil-related assets and businesses, and adhere to our long term strategy of growing a sustainable business.”
Shares of CAO closed 2 cents lower at $1.76 on Wednesday.
