Tuesday, September 30, 2008

China Aviation Oil to start petrochemicals trading business

Singapore-listed China Aviation Oil said Tuesday it'll start a petrochemicals trading business in the fourth quarter of this year.

CAO, which supplies jet fuel to China, said in a statement thatit has already started jet fuel hedging and trading activities on a small scale and will gradually start trading other oil products when market conditions are conducive.

The company said it'll fund working capital requirements for the trading business through internal resources.

It said the business will not make significant profit contribution in the current fiscal year but is expected to contribute more significantly to China Aviation Oil's revenue and profit in 2009.

CAO suffered a setback in 2004 when two members of its top management were found guilty of failing to inform the Singapore Exchange of its massive losses of 550 million U.S. dollars in oil derivative trading. After restructuring, trading in shares of CAO resumed on the SGX in 2006.

Source: Xinhua

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