China Aviation Oil net profit soars 48.6% in H1

SINGAPORE - China Aviation Oil (Singapore) Corp Ltd (CAO) said on Thursday that its net profit jumped 48.6 percent to $47.8 million for the six months ending June 30 compared with the corresponding period a year ago.

It is lifted by higher trading and optimisation gains, increased supply and trading volumes as well as increased contributions from its associated and joint venture companies.

However, the overall revenue was 2.6 percent lower at $4.5 billion, due mainly to a decline in jet fuel prices, the group said in a statement.

Notwithstanding global macroeconomic uncertainties, CAO's total supply and trading volume for jet fuel and other oil products soared by 56.0 percent to 13.6 million tons in the first half year, from 8.7 million tonnes in the corresponding period a year ago.

The strong performance was achieved on the back of an 11.8 percent rise in jet fuel volumes and a 154.2 percent increase in the volumes of other oil products, in line with the group's strategic drive to expand its earning base through its diversification strategy.

"CAO turned in a commendable half-year performance on the back of sterling contributions from our supply and trading operations and portfolio of strategic investments in oil-related assets through our associates and joint venture companies," said Chief Executive Officer of CAO Meng Fanqiu.

"This set of strong results is again testament to the compelling value proposition offered by CAO's diversified and international growth platform today."

The group said it remains relentless in its focus on pursuing steady and sustainable growth and will continue to seek opportunities for expansion through acquisitions or investments in synergetic businesses and oil-related assets.