During the year, total supply and trading volume increased 18.3% to 25.9m tons. Growth was broad-based across both middle distillates and other oil products, with revenue expanding 6.4% and 5.0% for each segment, respectively.
FY25 revenue rose 5.9% to US$16.4b. as higher volumes offset lower oil prices.
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Share of results from associates improved 31.2% to US$60.2m, recovering to ~92% of FY19 levels. In particular, shares of results from SPIA grew 29.1% to US$57.4m, driven by higher refuelling volumes.
Net profit rose 41.7% to US$110.6m. FY25 China Aviation Oil's EPS jumped 41.1% to a record 12.85 US cents, beating our and the street’s expectations.
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Middle East conflict under close monitoring.
The International Air Transport Association (IATA) forecasts that the APAC region, led by China, will lead global aviation passenger traffic growth at 7.3%, accounting for 33% of global air traffic in FY26. The ongoing conflict in the Middle East, which has caused jet fuel prices to surge, has cast some uncertainty on civil aviation demand. Much will be dependent on the duration and severity of the conflict, in our view, as well as spillover effects onto the broader economy.
Based on management’s experience, elevated jet fuel prices have historically weighed on air travel demand and business volumes, but this is typically not significant to the financial performance of the company.
Management shared that it is closely monitoring the situation, focusing on:
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Above is an excerpt from a report by OCBC Group Research. Clients of OCBC Securities may be the first to access the full PDF report @ https://www.iocbc.com/.
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