Singapore's China Aviation Oil H1 profit falls on higher costs

China Aviation Oil (Singapore)

13/08/2026 06:06

Overview
Singapore jet fuel supplier's H1 revenue fell 8.8% yr/yr amid industry-wide headwinds
Net profit for H1 dropped 17% yr/yr, reflecting higher procurement costs and inventory losses
Share of results from associates surged 67% on higher contributions from core China market

Outlook
Company expects robust fundamentals in China and aviation recovery to bring new opportunities
CAO says global geopolitical tensions and energy market distortions to weigh on industry
Company expects Sinopec Group affiliation to provide strategic opportunities and access to resources

Result Drivers
LOWER BUSINESS VOLUME - Co said revenue decline was mainly due to reduced business volume amid industry-wide disruptions
HIGHER PROCUREMENT COSTS AND INVENTORY LOSSES - Profit before tax fell due to increased jet fuel supply procurement costs and impairment losses from declining oil prices in Asia and the US West Coast
STRONG ASSOCIATE CONTRIBUTIONS - Share of results from associates rose 67% on higher refuelling volumes and oil prices in the core China market

Company press release: ID:nSNcgCh4Q

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
 
$7.81 bln
 
H1 Net Income
 
$41.14 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the airport operators & services peer group is "buy"
Wall Street's median 12-month price target for China Aviation Oil (Singapore) Corporation Ltd is S$2.57, about 46.6% above its August 12 closing price of S$1.75
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads
Aug 12 - Singapore's ST Engineering H1 revenue, profit rise, partly on strength in commercial aerospace
Aug 12 - Singapore's AP Oil International H1 revenue rises on trading segment growth
Aug 13 - Sembcorp projects stronger second half after 25% drop in interim profit

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)