China Aviation Oil Q3 earnings slide 48.7% as costs rise

China Aviation Oil (CAO) earned US$19.8 million in net profit during the quarter ending September 30, a 48.7 per cent decline against the year-earlier US$38.6 million. In results issued on November 12, the jet fuel supplier reported higher revenue but weaker gross profit and increased expenses.

Disruption affecting energy supply chains after the Middle East conflict intensified weighed on earnings. Quarterly revenue reached US$5.4 billion, an increase of 18.2 per cent against US$4.6 billion previously. Gross profit, however, dropped 76.1 per cent to US$6.5 million; the earlier figure was US$27.3 million. Administrative costs reached US$6.2 million, nearly twice their previous level.

Income from associates partly offset the pressure: CAO's share reached US$21.2 million, rising 34.5 per cent against US$15.8 million a year earlier. CAO also declared a special cash dividend, payable on an interim, one-off basis, of S$0.0372 per share. It marks 25 years since the company's Singapore Exchange mainboard listing.

For January-September 2026, net earnings totalled US$61.2 million, falling 31 per cent against US$88.6 million previously. Higher oil prices were the main reason revenue grew 0.6 per cent, reaching US$13.22 billion against US$13.14 billion. Gross profit contracted 80.2 per cent to US$11.4 million, while expenses increased 65.5 per cent to US$21.5 million.

CAO said its outlook remained cautiously optimistic, pointing to resilient Chinese demand and a continuing recovery in international air travel. Its plans include expanding its jet fuel supply and trading network, building sustainable aviation fuel capabilities and investing in strategic oil-related assets.