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PR Newswire
05-05-2011, 08:56 PM
May 5, 2011, 6.31 pm (Singapore time)
CAO reports 66.7% jump in Q1 profit
By LYNETTE KHOO
China Aviation Oil (CAO) reported a 66.7 per cent year-on-year jump in net profit for the first
quarter ended March 31, 2011 to US$21.46 million on the back of a strong showing in jet fuel
supply and trading.
Revenue more than doubled to US$1.98 billion from US$985.96 million a year ago. Jet fuel prices
in the first quarter averaged US$114.19 per barrel compared to an average of US$85.91 in the same
period last year.
The total supply and trading volume for jet fuel and other oil products expanded by 50 per cent
to 2.19 million tonnes for the first quarter ended March 31, up from 1.46 million tonnes for the
first quarter last year.
'Growth of our jet fuel trading business was mainly driven by higher trading gains from storage
and freight optimisation activities as well as initiatives such as our trading collaboration with
BP,' said CAO chief executive Meng Fanqiu.
But the management is closely monitoring the risk of volatility following the current high oil
prices.
Mr Meng noted that increased uncertainties caused by the unrest in North Africa, the Middle East
and Japan's quake and nuclear crisis have posed greater challenges for the group's trading
activities.
'CAO will continue to adopt a prudent trading strategy while actively seeking growth
opportunities,' he said.
Shares of CAO fell 2.3 per cent to $1.29.
CAO reports 66.7% jump in Q1 profit
By LYNETTE KHOO
China Aviation Oil (CAO) reported a 66.7 per cent year-on-year jump in net profit for the first
quarter ended March 31, 2011 to US$21.46 million on the back of a strong showing in jet fuel
supply and trading.
Revenue more than doubled to US$1.98 billion from US$985.96 million a year ago. Jet fuel prices
in the first quarter averaged US$114.19 per barrel compared to an average of US$85.91 in the same
period last year.
The total supply and trading volume for jet fuel and other oil products expanded by 50 per cent
to 2.19 million tonnes for the first quarter ended March 31, up from 1.46 million tonnes for the
first quarter last year.
'Growth of our jet fuel trading business was mainly driven by higher trading gains from storage
and freight optimisation activities as well as initiatives such as our trading collaboration with
BP,' said CAO chief executive Meng Fanqiu.
But the management is closely monitoring the risk of volatility following the current high oil
prices.
Mr Meng noted that increased uncertainties caused by the unrest in North Africa, the Middle East
and Japan's quake and nuclear crisis have posed greater challenges for the group's trading
activities.
'CAO will continue to adopt a prudent trading strategy while actively seeking growth
opportunities,' he said.
Shares of CAO fell 2.3 per cent to $1.29.