China Aviation Oil Q3 net profit falls 48.7% to US$19.8 million amid energy supply-chain hitches
Revenue rises 18.2%, but weaker gross profit and higher expenses weigh on earnings
China Aviation Oil (CAO) reported a significant 48.7% year-on-year decrease in net profit to US$19.8 million for the third quarter ending September 30, 2026, due to disruptions in energy supply chains caused by escalating tensions in the Middle East. Despite a 18.2% increase in revenue to US$5.4 billion, the company's weaker gross profit and elevated expenses resulted in a notable decline in earnings.
Gross profit fell by 76.1% to US$6.5 million, while administrative expenses nearly doubled to US$6.2 million. However, CAO's share of associated results rose 34.5% year-on-year to US$21.2 million. Earnings per share declined to US$0.0229, down from US$0.0448 in the previous year. For the first nine months of 2026, CAO's net profit fell 31% year-on-year to US$61.2 million, and revenue increased marginally by 0.6% to US$13.22 billion, driven by higher oil prices.
Meanwhile, gross profit plunged 80.2% to US$11.4 million, and total expenses rose 65.5% to US$21.5 million. The company remains cautiously optimistic about its future prospects, attributing this to resilient demand in its core China market and the recovery of international air travel. CAO noted that China's international air passenger traffic rose 4.7% year-on-year to 61.95 million passengers.
The group plans to expand its jet fuel trading and supply network, enhance its sustainable aviation fuel capabilities, and pursue investments in strategic oil-related assets. As of September 30, CAO had US$513.9 million in cash and cash equivalents, a decrease from US$687 million at the end of December 2025. Its net asset value per share was US$1.3002, up from US$1.2528 at the end of 2025.
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