China Aviation Oil - DBS Research 2026-03-17: Capital Story In-tact; Margins Could Take Flight Amid Turbulence

• China Aviation Oil (SGX:G92)'s 2H25 net profit came in US$60.6mil (+21.1% h-o-h, 69.1% y-o-y), with FY25 net profit of US$110.6mil handily beating the street’s projection by 14%.
• - Read this at SGinvestors.io -

Convincing beat on better trading economics.

• The real surprise was in middle distillates gross profit per tonne, which expanded to US$4.7/mt in 2H25, up 77% y-o-y and 15.8% h-o-h, as favourable regional arbitrage conditions widened and SAF supply contributed incrementally to the mix.
• Key associate SPIA also came in slightly ahead of expectations, delivering US$31.9mil in equity earnings in 2H25, up 45% y-o-y, supported by China's continued aviation recovery with international traffic rebounding.

The only blip in an otherwise impressive report was capital returns.

• - Read this at SGinvestors.io -

Volatility across crude and refined product markets should be supportive for CAO.

• Read more at SGinvestors.io.

Jason SUM CFA DBS Group Research | https://www.dbs.com/insightsdirect/ 2026-03-17

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