Source: Channelnewsasia.com Author: Irene Chan 02/25/2009
Subject Concerned: Aviation Fuel
Singapore-listed China Aviation Oil (CAO) has posted a 77 per cent drop in full-year net earnings to some US$38 million.
CAO said the fall was mainly due to the absence of divestment gains, which were recorded in the previous year's results.
Excluding the exceptional gains from last year, the company's net profit would have increased about 14 per cent.
Revenue for the 12 months ended December surged 81 per cent to US$5.4 billion.
The jet fuel supplier said the fundamentals of its core businesses have remained strong despite the global economic downturn.
It said it has the financial strength to weather the global uncertainties because it has a healthy cash reserve and no-interest bearing debts.
CAO also said it is taking proactive steps to further diversify its earnings base.
It will continue to expand its jet fuel supply and oil trading businesses, though cautiously, in view of weakening global economies.