- China Aviation Oil's 1H25 PATMI surged 18.4% y-o-y to US$50mil, beating our expectations and accounting for 60% of FY25e estimates, despite expecting a seasonally stronger 1H25.
- - Read this at SGinvestors.io -
- Associates delivered a robust performance in 1H25, rising 18.6% y-o-y to US$27.44mil, driven by higher refuelling volumes at Shanghai Pudong International Airport, with contributions up 13.9% y-o-y to US$25.49mil. Profit from other associates surged 156% y-o-y to US$1.95mil.
The Positives
Increasing trading volume with a higher margin.
- Trading volume rose 35.4% y-o-y to 13.77mil mt in 1H25, driven by robust jet fuel demand. China Aviation Oil is capitalising on China’s oversupply by reselling at higher prices to markets such as Europe and the rest of Asia. Gross profit margin improved marginally by 0.03ppt to 0.35%, supported by increased sustainable aviation fuel (SAF) trading, which currently accounts for a low single-digit share of total trading volume.
- - Read this at SGinvestors.io -
Increasing contribution from SPIA.
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