According to PriucewaterhouseCoopers Singapore's newly released report on the incident that led to China Aviation Oil Singapore Corporation Ltd's option losses, the following are reasons that caused option losses in its gas future trade, said the China Aviation Oil Singapore Corp in an announcement dated March 29.

-Wrong judgment of future oil price made in the 4th quarter 2003.

-The attempt not to account losses in the company's quarterly reports leads to restructuring of the Company's options portfolio in 2004 and makes the company rashly take enormous uncontrollable risks.

The gross debts of China Aviation Oil Singapore Corp have amounted to US$ 530 mln, excluding shareholder's loans.

By People's Daily Online