BEIJING: China Aviation Oil (CAO) was hit with a near seven-fold increase in income tax expense for the fourth quarter of 2017, due to a decline in deferred tax assets as a result of the utilisation of unabsorbed tax losses from prior years to offset the current year’s profits, the group said in its earnings statement. Income tax expense was US$3.33 million for Q4 2017 compared to US$0.42 million a year ago.
The increase was also due to recognition of deferred tax liabilities on the group’s share of undistributed retained earnings from associates and tax expenses incurred on transfer of shareholding in Oilhub Korea Yeosu consequent to the liquidation procedures of CAOT Pte Ltd, CAO said.
Earnings per share for Q4 2017 came in at 1.64 US cents, down from 2.08 US cents a year ago, and net asset value per ordinary share for the same period was 84.12 US cents, up from the previous year. For the overall 2017 financial year, gross profit decreased by 12.1 per cent to US$38.7 million, mainly due to lower gains from trading and optimisation activities as markets reclined to backwardation, exacerbated by increases in supply and operational costs incurred due to various supply disruptions caused by weather and refinery outages in the third quarter of 2017, CAO said.
CAO’s board has proposed a dividend of 4.5 Singapore cents per share for FY2017, subject to approval at the upcoming annual general meeting, which is in line with the group’s dividend policy of distributing 30 per cent of the group’s consolidated net profits.
