China Aviation Oil profit slipped 2.12% to $35.8m in Q1

The decline in overall supply and trading volume dragged it down.

China Aviation Oil’s net profit dipped 2.12% YoY to $35.8m (US$26.3m) in Q1 from $36.6m (US$26.9m) in 2018, attributed to lower profits from trading and optimisation activities, according to a filing in SGX.

The group recorded total revenue of $5.1b (US$3.72b) for Q1, a decrease of 9.37% YoY from $5.6b (US$4.10b) in 2018, due to lower oil prices and a decrease in overall supply and trading volume.

Revenue from middle distillates improved 2.91% to $3.8b (US$2.76b), but this was offset by a 32.50% decrease in revenue for other oil products to $1.3b (US$960.67m).

Earnings per share is 4.16 cents (3.06 US cents) for Q1 2019 compared to 4.26 cents (3.13 US cents) in Q1 2018.

On the back of lower profit contribution from Shanghai Pudong International Airport Aviation Fuel Supply Company Ltd (SPIA), the share of profits from associates was $26m (US$19.12m) for 1Q 2019, compared to $28.5m (US$20.97m) in 2018, a decrease of 8.79% YoY.

During the period under review, the share of profits from SPIA decreased by 8.91% to $24.2m (US$17.21m), mainly attributable to lower revenue as average oil prices in 1Q 2019 were lower than 1Q 2018. Share of profits from other associates decreased by 7.68% to $1.6m (US$1.91m) due mainly to lower profits from tank storage leasing activities by Oilhub Korea Yeosu Co.