China Aviation Oil looks to expand into other fuels

China Aviation Oil, the largest physical jet fuel trader in the Asia Pacific, unveiled its 2020 corporate strategy. The company said it plans to expand its footprint globally and become a “top-tier integrated transportation fuels provider.”
“CAO has come a long way from a China-centric jet fuel supplier to become Asia Pacific’s largest physical jet fuel trader. Our 2020 Corporate Strategy extends and builds on the 2014 Corporate Strategy which CAO has pursued since 2010, by leveraging and building on CAO’s advantage in China and Asia Pacific to seek global expansion,” CEO Meng Fanqiu said in a statement.
Singapore-listed CAO is the sole supplier of imported jet fuel in China.
The company’s ambitious plans to build a global supply and trading network come as it unveiled a threefold increase in net profit for the fourth quarter of 2012 to US$18.15 million, due largely to contributions from associated companies and lower operating expenses.
Meng said that CAO aims to sustain double-digit annual growth rates for volumes, revenue and profit, so that it can achieve a twofold increase in its annual net profit by 2020, from the 2012 level of US$66.19 million.
The company has already started making inroads globally. In March 2012, it completed the acquisition of sister companies China Aviation Oil (Hong Kong) and North American Fuel Corporation for around US$16 million from its parent company China National Aviation Fuel Group Corporation. CAOHK is mainly involved in trading and supply of jet fuel to airlines at various airports while Nafco is an agent and wholesaler of jet fuel in the U.S., which has been selling to U.S. fuel suppliers and major Chinese airlines since January 2011.
CAO said that jet fuel will remain the group’s core business segment as it seeks to be a global leader for this product segment through the expansion of trading activities and development of its aviation marketing business in major markets worldwide. (February 28, 2013)