ASIA - Singapore-based China Aviation Oil (CAO) saw its jet fuel supply and trading volume rise by 22.4% in the third quarter versus last year to 1.91 million metric tons (165,000 barrels per day). The company said a surge in trading activity was behind the strong performance, but blamed lower margins on trading and higher freight costs for a 10.4% drop in third-quarter profits to $7.9 million. In a statement, CAO said trading had become a bigger part of its business because Chinese jet imports had stagnated. Including other products, CAO handled 2.03 million tons in the third quarter, up 26.9% on last year. Profits from CAO's subsidiary Shanghai Pudong International Airport Aviation Fuel Supply Co. also fell 29.6% to US$7.9 million in the third quarter. Looking ahead, CAO expects to see a stronger financial performance in 2011. "We have added storage capacities in North Asia to strengthen our trading capabilities. CAO has also signed a 4-year business collaboration agreement with BP which gives us access to new markets from next year onwards," Chief Executive Meng Fanqiu said (JFI Oct.18,p3).
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