- Following the recent US-Israel-Iran conflict, oil prices have risen from around US$65/bbl to around US$100/bbl, which could improve China Aviation Oil (SGX:G92)’s short-term profitability.
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2025 earnings above expectations.
- China Aviation Oil reported a 2025 net profit of US$111m (+42% y-o-y), forming 132% of our forecasts. The stronger performance was supported by higher trading profitability and increased profit contribution from associates on the back of stronger travel recovery.
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Robust balance sheet position.
- China Aviation Oil’s remains in a strong cash position of US$687m without any borrowings and represents around 50% of market cap.
- Operating cash flows also improved by 24% y-o-y to US$150m, indicating improvement in underlying business operations. NAV also rose to US$1.25 per share in 2025, compared to US$1.14 in 2024. This strong balance sheet positions China Aviation Oil to further expand and drive growth for its business.
Margins expansion reflects stronger profitability.
- Read more at SGinvestors.io.
