China Aviation Oil Singapore Corporation (G92) H1 2023 earnings summary

Executive summary

• H1 2023 revenue fell 32.42% to US$6,277.07m and net profit declined 1.07% to US$19.405m; operating profit rose 10.23% to US$13.37m.

• Supply and trading volume fell 16.06% to 9.46m tonnes amid lower oil prices and trading volumes.

Financial highlights

• Gross profit fell 50.55% to US$10.65m, mainly due to lower trading gains.

• Operating profit rose 10.23% to US$13.37m, supported by higher other income and lower expenses; total expenses decreased 17.42% to US$6.921m.

• Other operating income was US$9.64m versus a US$1.02m loss; bank interest income rose to US$9.33m from US$0.57m, mainly due to higher rates.

• Profit before tax was US$21.63m, down 0.81%; basic and diluted EPS remained 2.29 US cents.

Outlook and guidance

• Cautiously optimistic on FY 2023 performance; China’s international air passenger market recovery was expected to accelerate in H2.

• Priorities include prudent market-risk management, operational resilience, stronger jet fuel supply and trading networks, and strategic expansion into synergistic oil-related assets and businesses.