HONG KONG, Aug. 27, 2015 /PRNewswire/ -- Sinopec Shanghai
Petrochemical Company Limited ("Shanghai Petrochemical" or the
"Company") (HKEx: 00338; SSE: 600688; NYSE: SHI) today announced
the unaudited operating results of the Company and its subsidiaries
(the "Group"), prepared under International Financial Reporting
Standards ("IFRS"), for the six months ended 30 June, 2015 (the "Period").
According to IFRS, turnover for the Group for the Period reached
RMB42,125.5million, representing a
decrease of 17.96% year-on-year. The Group recorded profit after
income tax and non-controlling shareholder interests of
RMB1,770.9 million (2014 interim:
loss after income tax and non-controlling shareholder interests of
RMB123.6 million). Basic earnings per
share amounted to RMB0.164 (2014
interim: basic loss per share of RMB0.011). The Board of Directors did not
recommend the distribution of 2015 interim dividend (2014 interim:
Nil).
Mr. Wang Zhiqing, Chairman of Shanghai Petrochemical, said, "The
global economy experienced a tortuous and slow recovery. Amidst
such a complicated domestic and foreign economic environment and
facing growing downward pressure, the PRC economy managed to show a
slow-yet-steady development trend with growth within a reasonable
range as a result of macroeconomic regulation and control and
innovative reforms, signaling a further slowdown in economic
growth. In the first half of the year, the PRC petrochemical sector
generally remained stable. The performance of the refining sector
continued to improve, and the petrochemicals sector even witnessed
relatively rapid profit growth. Nonetheless, the market demand was
still rather weak, with an overall slowdown in petroleum and
petrochemical consumption growth. Overcapacity in the industry was
overwhelming, market competition intensified further. Amidst
complicated and severe market conditions in the first half of 2015,
the Group strived to maintain steady operation in terms of safety,
environmental protection and production, while ramping up efforts
in structure optimization, cost-saving and profit-increasing."
In the first half of 2015, the Group's net sales reached
RMB35,064.6 million, representing a
decrease of 24.90% year-on-year. Of this, net sales of synthetic
fibres, resins and plastics, intermediate petrochemicals and
petroleum products declined by 13.46%, 11.35%, 27.54% and 35.33%,
respectively. Net sales from the trading of petrochemical products
increased by 2.20%.
In the first half of 2015, the total volume of goods produced by
the Group amounted to 7,117,700 tons, representing an increase of
6.85% year-on-year. From January to June, the Group processed
7,348,700 tons of crude oil (including 687,400 tons of crude oil
processed on a sub-contract basis), representing an increase of
1.70% year-on-year. Total production of refined oil products
reached 4,412,300 tons, representing an increase of 3.79%
year-on-year. Of this, the output of gasoline was 1,491,200 tons,
representing a decrease of 1.55% year-on-year; the output of diesel
was 2,141,400 tons, representing an increase of 5.32% year-on-year;
and the output of jet fuel was 779,700 tons, representing an
increase of 10.88% year-on-year. The Group produced 423,500 tons of
ethylene and 340,900 tons of paraxylene, representing an increase
of 4.65% and a decrease of 6.50% year-on-year, respectively. The
Group also produced 531,900 tons of synthetic resins and plastic
(excluding polyesters and polyvinyl alcohol), representing an
increase of 9.02% year-on-year; 424,700 tons of synthetic fibre
monomers, representing an increase of 17.42% year-on-year; 217,700
tons of synthetic fibre polymers, representing an increase of 6.35%
year-on-year; and 115,800 tons of synthetic fibres, representing a
decrease of 0.94% year-on-year. During the Reporting Period, the
Group's output-to-sales ratio and receivable recovery ratio were
99.03% and 100.01%, respectively.
In the first half of 2015, the global supply of crude oil
remained high, and due to a potential rebound in demand and a
pending slowdown in oil production, global crude oil prices
experienced a decline before showing a fluctuating rising trend,
then leveling off. The average unit cost of crude oil processed
(for the Group's own account) was RMB2,652.96 per ton, representing a decrease of
RMB2,213.98 per ton, or 45.49%
year-on-year. The Group's cost of crude oil accounted for 54.06% of
the total cost of sales.
During the Period, the Group ramped up inspection efforts for
the sake of safety and environmental protection, and successfully
passed the Clean production check and acceptance conducted by the
Shanghai Clean Production Center. The Group further advanced
quantitative patrols and checks on equipment, thereby eliminating
facilities hazards and realizing the stable and long-term operation
of production devices. Meanwhile, the Group integrated its
optimization model for the full process flow of oil refining,
placed emphasis on estimating the cost-performance of different
kinds of crude oil and optimized its crude oil structure. It also
reinforced the tracking of marginal contribution from petrochemical
facilities and adherence to dynamic optimization mechanisms with
the aim of boosting efforts in further optimization to its
integrated refining and petrochemical system. In respect of the
implementation of key scientific research projects, the Group
continued to make progress and facilitated industrial development
and market exploration for its new products. The Group developed
and produced 150,900 tons of new products, and submitted 22 patent
applications, with nine patent authorizations granted. With the
in-depth development of an e-commerce sales model for its products,
the Group gradually increased the types and quantities of
petrochemical products traded online on its e-commerce platform.
The Group worked hard to promote its integrated management system
and to optimize business flow. In April, the Group was duly
recognized by the Ministry of Industry and Information Technology
as one of the very first batch of enterprises to meet the national
standards for management systems in regard to the integration of
informatization and industrialization.
Looking ahead, Mr. Wang Zhiqing said, "In the second half of
2015, the global economy will continue to be in a stage of deep
adjustments. The environment is less optimistic, with the sluggish
economy struggling to recover and the major economies demonstrating
diverse development trends. The Chinese economy realized a
slow-yet-stable performance within a reasonable range in the first
half of the year. However, as the economy is still under great
pressure to maintain steady growth, to adjust structure, to
continue its reforms and to be innovative, it will continue to face
downward pressure in the second half of the year. The prospects for
the petrochemical industry will remain complicated. Overcapacity
persists, along with weakening innovation abilities and relatively
low product grades, resulting in internal pressure on the operation
of the industry. Meanwhile, with the government continuing to
strengthen its policies to support steady growth, market demand has
increased steadily and the prices of petroleum and petrochemical
products have continued to stabilize. The petrochemical industry in
China is expected to continue to
undergo steady development in the second half of the year. Facing a
challenging market environment, we will focus on enhancing the
quality and efficiency of its development and will continue to step
up efforts in safety and environmental protection, production and
operations, system optimization, cost-saving and expenses reduction
as well as intensification of its management. The Group will also
enhance its efficiency."
Shanghai Petrochemical is one of the largest petrochemical
companies in China in terms of
sales revenue, and was one of the first Chinese companies to
complete a global securities offering. Located in the Jinshan
District in southwest Shanghai,
the Group is a highly-integrated petrochemicals enterprise which
processes crude oil into a broad range of products such as
synthetic fibres, resins and plastics, intermediate petrochemicals
and petroleum products.
Encl: Condensed Consolidated Income
Statement (Unaudited): http://photos.prnasia.com/prnk/20150827/8521505585
***
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 such as 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, due to the PRC government's implementation of
macro-economic control measures to curb over-heating of the PRC
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 Company may
not be able to raise the prices of its products as appropriate,
thus adversely affecting 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 the 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 the management; the risk of 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
laws.
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SOURCE Sinopec Shanghai Petrochemical Company Limited