China Aviation Oil Singapore Corporation (G92) H2 2023 earnings summary

Executive summary

• FY2023 net profit rose 75.90% to US$58.37 million, despite revenue declining 12.36% to US$14.43 billion.

• Higher gross profit, other operating income and associate contributions drove earnings growth.

Financial highlights

• Gross profit increased 42.97% to US$50.60 million; revenue fell as oil prices and trading volume declined.

• Other operating income rose to US$18.72 million from US$1.01 million, mainly on higher interest income; FX moved to a US$0.34 million gain from a US$3.71 million loss.

• Total expenses increased 103.13% to US$33.70 million; income tax expense rose to US$7.56 million from US$4.52 million.

Outlook and guidance

• China’s international flights are projected to reach 6,000 weekly by end-2024, supporting expected performance in the foreseeable future.

• Priorities include prudent market-risk management, reinforcing operational resilience, expanding the jet-fuel supply and trading network, and pursuing strategic oil-related investments.