China Aviation Oil Reports 8.1% Fall in Net Profit
Financial Performance
China Aviation Oil (CAO) reported a 8.1% fall in net profit to US$36 million for the second half ended December 31, from US$39.1 million in the previous corresponding period.
The decrease in net profit was mainly attributed to a decrease in gross profit, partially offset by a fall in expenses. Gross profit for the period was US$17.7 million, down 55.7% from US$40 million in the prior year due to lower gains from jet fuel supply and trading of other oil products.
Earnings per Share and Revenue
Earnings per share stood at US$0.0418 for the half-year period, down 8.1% from US$0.0455 the previous year. Revenue fell slightly by 2.1% to US$8 billion from US$8.2 billion, on the back of a decline in oil prices.
Dividend Declaration
CAO proposed a final dividend of S$0.0372 per share for FY2024, compared with a S$0.0271 per share final dividend and a one-off special cash dividend of S$0.0234 per share for FY2023. The payment date and record date are to be announced in due course.
Full Year Performance
For the full year, net profit rose 33.1% to US$78.4 million from US$58.9 million. Revenue rose 7.6% to US$15.5 billion from US$14.4 billion, on the back of a rise in business volume.
Financial Position
The group highlighted that its financial position "strengthened considerably", maintaining no interest-bearing debt. Its cash and cash equivalents balance as at end-December rose to US$500.3 million from US$373 million previously.
Medium-Term Outlook
Lin Yi, chief executive of CAO, expressed cautious optimism about the group’s medium-term outlook. He said the industry outlook "remains bright" as growth trends accelerate in the aviation industry and the low-carbon business brings about new opportunities.
Share Price
Shares of CAO were down 4.2% or S$0.04 at S$0.905 as at 1.01 pm on Thursday.
Conclusion
China Aviation Oil’s financial performance for the second half of the year was affected by a decline in gross profit and revenue. However, the group’s financial position remains strong, and its medium-term outlook remains optimistic.
Frequently Asked Questions
Q: What was China Aviation Oil’s net profit for the second half ended December 31?
A: US$36 million
Q: How did China Aviation Oil’s gross profit change compared to the previous year?
A: Gross profit fell 55.7% to US$17.7 million
Q: What was China Aviation Oil’s earnings per share for the half-year period?
A: US$0.0418
Q: Will China Aviation Oil pay a dividend for FY2024?
A: Yes, the group proposed a final dividend of S$0.0372 per share.
