Shanghai Petrochemical posts CNY2.3bn Q3 loss

30 October 2008 10:18  [Source: ICIS news]

SHANGHAI (ICIS news)--Shanghai Petrochemical has posted a net loss of yuan (CNY) 2.3bn ($336.1m) in the third quarter against a loss of CNY81.6m in the same period last year due to the rapid drop in crude oil prices and weak downstream demand, it said on Thursday.

In the first three quarters, the company incurred a loss of CNY2.6bn compared with a profit of CNY1.7bn in the year-earlier period under the China Accounting Standards for Business Enterprises, the Chinese petrochemical major said in a filing statement to Shanghai Stock Exchange on Thursday.

Operating losses for the first three quarters amounted to CNY 5.7bn as opposed to a profit of CNY 2.3bn in the year-ago period.

The company said it received a substantially reduced amount of financial subsidies for its oil refining operation during the third quarter this year.

It also warned that it would incur a significant loss in net profit for the 12-month period ending 31 December 2008 due to uncertainties over financial subsidies for its oil refining operation in the fourth quarter of the year.

($1 = CNY6.84)

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