China Aviation Oil's Q4 Net Profit Down 43%

China Aviation Oil (Singapore) Corporation Ltd (CAO) on Wednesday announced that its fourth-quarter net profit in 2011 was down 43 per cent on-year to S$7.16 million from S$12.6 million in the previous year.

CAO said this was mainly due to the provision for doubtful debts relating to monies placed with trading firm MF Global Singapore (which is in receivership) for purposes of meeting CAO's margin requirements for its trading positions.

Net profit was also impacted by higher operating expenses and lower contribution from share of results of associates.

Revenue rose 31.3 per cent on-year to S$2.7 billion from S$2.05 billion mainly because of higher jet fuel prices in 4Q2011, which averaged at S$158.40 per barrel compared to an average S$118.60 per barrel in 4Q2010.

For the year ended December 31, net profit grew 15.9 per cent to S$79.8 million from S$68.8 million the earlier year.

Meanwhile, group revenue was up 65.3 per cent on year to S$11.3 billion from S$6.86 billion.

Earnings per share in 4Q2011 decreased to 0.99 Singapore cents, down 43.2 per cent on-year from 1.75 Singapore cents.

A final cash dividend of 2 Singapore cents per share has been proposed.

Sun Li, chairman of CAO said, "Looking ahead, we expect to see continued volatility in the global economy and energy markets. Despite the near-term economic uncertainties, CAO will focus on building a global trading network by proactively expanding into Europe, North America and the Middle East, whilst strengthening our position as the largest physical jet fuel trader in the Asia Pacific region."