Shanghai Petrochemical Announces Results for the First Three Quarters of 2009
Company Limited (“Shanghai Petrochemical” or the “Company”) (HKEx: 338; SSE:
600688; NYSE: SHI) announced today the unaudited operating results of the
Company and its subsidiaries (collectively, the “Group”) for the nine-month
period ended
Under the China Accounting Standards for Business Enterprises, the Group’s
operating income for the Period amounted to
decrease of 31% compared to the same period of last year, due to a significant
decrease in product prices following a decrease in crude oil prices as
compared to the same period of last year. Operating profit for the Period was
Net profit attributable to equity shareholders of the Company for the Period
was
shareholders of the Company was
share was
Mr. Rong Guangdao, Chairman of Shanghai Petrochemical, said, “Since the
beginning of this year,
Refined Oil by beginning to levy the fuel consumption tax and indirectly
linking the prices of domestic refined oil products with the prices of
international crude oil in a controlled manner, together with the promulgation
of the “Administrative Measures for Petroleum Prices (Trial)” in May, the
inversion between prices of refined oil products and those of crude oil was
basically brought to an end, thus improving the profitability of the Company’s
refining operation to a certain extent. The petrochemical operation has
bottomed out and re-stabilized, with prices of a majority of products having
risen to a certain extent as demands in the downstream industry have gradually
stabilized. Also, the production load of the relevant plants of the Company
has increased and profitability has, therefore, been enhanced to a certain
extent. However, as the impact of the international financial crisis continues
to persist and there is a further upward trend of international crude oil
prices, together with further intensified competition in the market due to
newly added production capacity, many uncertainties still exist in the
external operating environment of the Company. The Group will continue to
actively respond to difficulties and challenges in its production and
operation; strive to ensure a safe, stable and optimized operation; and
further improve its work on crude oil purchasing and products sale, with a
view to further improving the Company’s operating efficiency.”
Shanghai Petrochemical is one of the largest petrochemical companies in
the PRC and was one of the first Chinese companies to effect a global
securities offering. Located in Jinshan District in the southwest of
it is a highly integrated petrochemical complex which processes crude oil into
a broad range of products in synthetic fibres, resins and plastics,
intermediate petrochemicals and refined oil products.
This press release contains statements of a forward-looking nature. These
statements are made under the “safe harbor” provisions of the U.S. Private
Securities Litigation Reform Act of 1995. You can identify these forward-
looking statements by terminology such as “will,” “expects,” “anticipates,”
“future,” “intends,” “plans,” “believes,” “estimates” and similar statements.
The accuracy of these statements may be impacted by a number of business risks
and uncertainties that could cause actual results to differ materially from
those projected or anticipated, including risks related to: the risk that the
PRC economy may not grow at the same rate in future periods as it has in the
last several years, or at all, including as a result of the PRC government’s
macro-economic control measures to curb over-heating of the economy;
uncertainty as to global economic growth in future periods; the risk that
prices of the Company’s raw materials, particularly crude oil, will continue
to increase; the risk that the Company may not be able to raise its product
prices (particularly refined oil products) accordingly which would adversely
affect the Company’s profitability; the risk that new marketing and sales
strategies may not be effective; the risk that fluctuations in demand for the
Company’s products may cause the Company to either over-invest or under-invest
in production capacity in one or more of its four major product categories;
the risk that investments in new technologies and development cycles may not
produce the benefits anticipated by management; the risk that the trading
price of the Company’s shares may decrease for a variety of reasons, some of
which may be beyond the control of management; competition in the Company’s
existing and potential markets; and other risks outlined in the Company’s
filings with the U.S. Securities and Exchange Commission. The Company does not
undertake any obligation to update this forward-looking information, except as
required under applicable law.
Encl: Consolidated Income Statement (Unaudited)
http://www.prnasia.com/sa/attachment/2009/10/20091028513932.pdf
For further information, please contact:
Ms. Janet Lai / Ms. Christy Lai
Rikes Hill & Knowlton Limited
Tel: +852-2520-2201
Fax: +852-2520-2241
SOURCE Sinopec Shanghai Petrochemical Company Limited