CAO reports 1HFY2022 earnings of US$19.6 mil

The Edge Singapore
1-min read

"We remain confident about the longer term outlook."

China Aviation Oil (Singapore) Corporation has reported revenue of US$9.29 billion for 1HFY2022 ended June, up 5.97% y-o-y, due to higher oil prices.

However, lower contributions from its associates and unfavourable forex movements led to lower earnings of US$19.61 million, down 19.24% y-o-y.

The company, the largest physical jet fuel trader in the Asia Pacific region, is the key supplier of jet fuel at Shanghai’s Pudong airport. It owns other operating units elsewhere too.

"We remain confident about the longer term outlook for the global aviation industry buoyed by the continued easing of travel restrictions and strong pent-up demand for travel,” says CEO Wang Yanjun.

However, he warns that the resurgence of highly transmissible Covid variants and the continued

travel restrictions imposed by some countries plus labour shortages at airports will “undoubtedly” lead to an uneven pace of recovery, with Asia Pacific significantly lagging the other regions over the near term.

Wang notes that oil price volatility, higher rates and geopolitical risks are areas of concern. Nevertheless, CAO is “cautiously optimistic” for this current FY2022 as the company builds on its jet fuel supply and trading network complemented with trading in other oil products.

“The group will also continue to focus on long-term profitability by seeking opportunities for strategic expansion through investments in synergetic and strategic oil-related assets and businesses,” he adds.

CAO shares last traded at 86 cents before the mid-day trading break.

see also: China Aviation Oil fuels up for the next growth stage

 

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