SINGAPORE - China Aviation Oil (Singapore) Ltd, the sole importer of jet fuel into China, said its fourth-quarter net profit fell 25.7 per cent due to lower contributions from associated firms.
CAO, the largest physical jet-fuel trader in the Asia-Pacific region, posted a net profit of $13.5 million for the quarter. The full-year net profit rose 6.1 per cent to $70.2 million.
The company, in which BP holds a 20 per cent stake, had said that it wanted to expand into trading of other oil products to limit its dependence on aviation fuel as growth slows in China.
Last September a senior company executive expected jet fuel consumption growth in China to slip to 9 per cent from 2016 to 2020 from 11 per cent from 2011 to 2015, which will likely keep jet fuel import growth rates at almost zero.
CAO also expects continued volatility in oil prices due to market uncertainties and will remain cautiously optimistic on core jet fuel supply and trading business.