China Aviation Oil's 1Q earnings fall 2.12% to $35.9 mil on lower revenue
SINGAPORE (April 25): China Aviation Oil (CAO) has announced 1Q19 earnings of US$26.3 million, down 2.12% y-o-y from US$26.9 million a year ago due to lower revenue.
Revenue for the quarter fell 9.37% to US$3.72 billion from US$4.1 billion in 1Q18 on the back of lower oil prices as well as a decrease in overall supply and trading volume.
Notably, a 32.5% decrease in revenue contributions from other oil products to US$960.7 million more than offset a 2.91% improvement in revenue from middle distillates to US$2.76 billion.
In all, total supply and trading volume fell 10.74% to 6.78 million tonnes compared to 7.60 million tonnes for 1Q18.
Volume for middle distillates grew 8.67% to 4.64 million tonnes, of which the volume of jet fuel supply and trading increased by 5.99% to 3.54 million tonnes.
Trading volume for gas oil increased by 18.28% to 1.10 million tonnes, although the trading volume of other oil products fell by 35.74% to 2.14 million tonnes due to lower trading volume for fuel oil.
Share of profits from associates fell 8.79% to US$19.12 million from US$20.97 million a year ago. This was mainly attributable to lower profit contributions from Shanghai Pudong International Airport Aviation Fuel Supply Company (SPIA), due to reduced average oil prices for the quarter under review as compared to the previous year.
As at end-March, the group’s cash and cash equivalents stood at US$379.2 million, up from US$196.55 million a year ago.
“While we remain cognisant of challenges of slower global economic growth and geopolitical tensions, we foresee good growth opportunities in the global aviation sector and China’s development strategy of ‘One Belt, One Road’, which bodes well for the group,” says Wang Yanjun, CEO of CAO.
“With the firm support of our parent company, China National Aviation Fuel Group Limited, we will leverage on our core competencies in the global jet fuel market and harness our global network and integrated supply chain to seize any opportunities and ensure the steady and sustainable growth and development of our business,” he adds.
Shares in CAO closed 1 cent higher at $1.43 on Thursday.
