Total 3Q18 revenue increased by 21.24% to US$6.3 billion for 3Q18 from US$5,2 billion for 3Q17, attributable primarily to higher oil prices even though total supply and trading volume decreased by 22.21% to 10.47 million tonnes for 3Q18 compared to 13.46 million tonnes for the 3Q17.
Total gross profit more than doubled to US$11.08 million for 3Q18 mainly due to higher jet fuel volume supplied to China and higher profits from trading and optimisation activities.
3Q18 other operating income decreased by 89.82% to US$0.08 million, mainly attributable to higher interest income partially offset by foreign exchange loss compared to foreign exchange gain for 3Q17.
Total expenses in 3Q18 increased by 77.37% to US$8.23 million for 3Q17.
Nevertheless, the weaker 3Q18 bottomline brings 9M18 earnings to US$75.13 million, 7.62% higher from a year ago due mainly to higher gross profit and profit contributions from SPIA.
China Aviation says concerns over trade wars, geopolitical tensions as well as global economic uncertainties are expected to further exacerbate the volatility in oil prices and heighten risks in trading.
Year to date, shares in China Aviation are down 17.4% to $1.38.
