SINGAPORE (Feb 28): China Aviation Oil (CAO) has announced a 23.88% increase in its 4Q18 earnings to US$18.7 million ($25.2 million), compared to US$15.1 million in 4Q17, mainly from the reduction in operating expenses and increase in gross profit.
This brings FY18 earnings to US$93.9 million, 10.52% higher than US$84.9 million in FY17.
Revenue for 4Q18 was 7.79% higher at US$4.38 billion from US$4.06 billion last year, primarily due to the increase in oil prices.
Cost of sale was 7.78% higher y-o-y at US$4.37 billion, bringing gross profit for 4Q18 to US$9.33 million, 11.89% higher than US$8.34 million a year ago.
Other operating income increased by 36.80% y-o-y to US$1.32 million, mainly attributable to higher bank interest income.
Administrative expenses grew by 58.95% y-o-y to US$7.64 million, while finance cost dropped 52.90% to US$0.62 million.
During the quarter, the group recorded profits from other operating expenses to US$3.89 million, compared to a loss of US$1.55 million in the previous year.
As at Dec 31, 2018, cash and cash equivalents stood at US$357.7 million.
The group has proposed a final cash dividend of 4.5 cents per share.
Wang Yanjun, CEO and executive director of CAO says, ““Amid expectations of slower economic growth and ongoing geopolitical uncertainties in the year ahead, China’s civil aviation industry and global travel growth trends will continue to present exciting opportunities for CAO. With vigilant risk controls, we will continue to press ahead to expand our global integrated value chain, complemented by our diversification strategy as well as seek opportunities for bolt-on expansion through investments.”
Shares in CAO closed 2 cents lower at $1.37 on Thursday.
