Fiasco nearly wiped out fuel firm

China Aviation Oil (Singapore) has revealed the impact of its derivatives losses of S$884.75 million ($4.62 billion) on its bottom line last year. The company plunged into a net loss of S$864.8 million in the financial year to December 31, 2004, after making a net profit of S$54.3 million in 2003.

Revenue jumped 28 per cent to S$3.08 billion last year, from S$2.39 billion in 2003, showing the prospects of its core business in the growing China market. But the massive losses all but wiped out the firm, leaving it with net liabilities of S$663.42 million.

Yet things are looking up. For the first nine months of this year, the firm reported a net loss of S$7.29 million on substantially reduced revenues of S$10.62 million.