JET fuel trader China Aviation Oil (CAO) : G92 0%reported a fall in net profit of 13.6 per cent to US$13.9 million for the second half of the year ended Dec 31, 2022, from US$16.1 million in H2 FY2021. 

The company on Tuesday (Feb 28) said this was due to a decrease in gross profit by 7.6 per cent to US$13.9 million and an increase in expenses. This was partially offset by the rise in the share of results from associates and other income. 

Its board of directors proposed a final dividend of 1.60 Singapore cents per share, down from 1.90 Singapore cents per share in 2021. 

Revenue for the half year decreased 19.9 per cent on year to US$7.2 billion from US$9 billion. Cost of sales for the half year fell 19.9 per cent to US$7.2 billion from US$8.9 billion in 2021. 

Earnings per share (EPS) for the half year stood at 1.61 US cents, down from 1.87 US cents in H2 of FY2021. 

Share of results from associates rose 10.4 per cent to US$8.2 million from U$7.5 million in the year-ago period. The share of results from Shanghai Pudong International Airport Aviation Fuel Supply Company rose 2.2 per cent to US$8.8 million, mainly due to lower operating expenses. 

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Other operating income also rose 34.8 per cent to US$2 million from US$1.5 million in 2021, which the company said was mainly due to higher interest income and a gain on deemed disposal of associates. 

For the full year, net profit for the company fell 16.9 per cent to U$33.5 million from US$40.4 million in FY2021. Revenue also decreased 6.7 per cent on year to US$16.5 billion from US$17.6 billion, which the group mainly attributed to the decrease in trading volume. 

Total supply and trading volume for the full year fell by 40.6 per cent to 20.3 million metric tons from 34.1 million metric tons in 2021. 

EPS for FY2022 fell 16.8 per cent to 3.90 US cents from 4.69 US cents. 

“The progressive recovery of the global aviation industry, boosted by the reopening of China’s borders, bodes well for CAO’s future performance as we actively leverage on this recovery trend and seek out opportunities for strategic expansion through investments in synergetic and strategic oil-related assets and businesses,” said Lin Yi, chief executive of CAO. 

Shares of CAO were trading at US$0.995, up 2.7 per cent or US$0.025 as at 1.40 pm on Tuesday.