- China Aviation Oil’s 1H25 revenue increased 13.6% y-o-y to US$8.6b, driven by a 25.4% y-o-y rise in total supply and trading volume to 13.8m metric tons (mt).
- The volume growth for middle distillates and other oil products came in at 18.7% and 61.8% y-o-y to 7.4m mt and 6.4m mt, respectively.
Bottom line beat on better-than-expected margins.
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- Gross profit improved 25.7% y-o-y, supported by optimisation gains from trading activities and positive SAF trading momentum in Europe, reaching US$30.4m.
- Together with an 18.6% y-o-y increase in share of results from associates to US$27.4m – largely driven by a 13.9% growth in contribution from SPIA to US$25.5m on higher refuelling volumes – China Aviation Oil's net profit gained 18.4% y-o-y to US$50m.
2H25 outlook.
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- Going into 2H25, we expect China Aviation Oil’s performance to be supported by:
- a continued recovery of Chinese outbound travel, especially with the ongoing summer holiday season and upcoming Golden Week in October; as well as
- increased, regulatory-driven SAF trading in Europe.
Increase Fair Value estimate to S$1.50.
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