China Aviation Oil Q2 profit rises on higher trading volumes

China Aviation Oil (Singapore)

27/07/2017 03:57

SINGAPORE, July 27 (Reuters) - China Aviation Oil 
(Singapore)  CNAO.SI , one of Asia's largest physical jet fuel 
traders, reported a rise in second-quarter profit on Thursday 
from a year ago due to higher trading volumes for middle 
distillates and other oil products. 
    Its total supply and trading volumes for middle distillates 
and other refined products increased to 8.39 million tonnes, up 
15 percent from the previous quarter, but down 4 percent from 
the same period last year.  
    This brought its net profit to $24.6 million in the second 
quarter, up 4.1 percent from the same period last year, while 
for the first half net profit rose 4.4 percent on year to $49.9 
million, the company said.  
    China Aviation oil is a key supplier of jet fuel to China, 
but its supply of the fuel has decreased over the years due to 
added refining capacity in the world's second largest oil 
consumer. 
    CAO also trades in other oil products such as fuel oil and 
has investments in oil storage.  
    Volatility in oil prices in recent months has driven up 
inventories of crude oil and gasoline, which has dented oil 
prices in the second quarter, said the company's chief executive 
Meng Fanqiu. 
    "The group remains focused on further expanding our aviation 
marketing business beyond China given the compelling growth 
prospects in the civil aviation industry globally," he said. 
    "The group will continue to proactively expand our global 
jet fuel supply and trading network, as well as actively explore 
trading opportunities in other oil products and diversify our 
business activities." 
    The company will continue to look for opportunities to 
invest in strategic oil-related assets and businesses, without 
revealing further details, he added.  
 
 (Reporting by Jessica Jaganathan; Editing by Sunil Nair) 
 ((Jessica.Jaganathan@thomsonreuters.com; +65 6870 3822; Reuters 
Messaging: jessica.jaganathan.thomsonreuters.com@reuters.net)) 
 
Keywords: SINGAPORE CAO/