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China Daily Website

China Aviation Oil Q2 profit drops 25.2%

Updated: 2012-08-03 09:56
( Xinhua)

SINGAPORE -- China Aviation Oil (Singapore) Co Ltd, Singapore Exchange mainboard-listed company, reported on Thursday that its net profit dropped 25.2 percent on year to $14.4 billion in the second quarter.

The drop was mainly caused by lower profit contributions from associated companies and higher operating overheads and finance costs in tandem with increased business activities.

The net profit in the first half of the financial year ended on June 30 also saw an annual decrease of 14.5 percent to $34.8 billion.

The company's main associated company, Shanghai Pudong International Airport Aviation Fuel Supply Company, contributed $9.2 million profit to the company in Q2, a sharp decline of 31.2 percent on year. The company attributed the decline to fewer sales revenue amid lower global oil prices, as well as slower reduction in cost of sales.

"Despite a slowdown in China's economic growth, the Group expects jet fuel import demand from China to remain stable, which will provide a sound foundation for the Group's jet fuel supply and trading activities," the company said in a statement.