China's Shanghai Petchem expects swing to Q1 profits

08 April 2009 11:29  [Source: ICIS news]

SHANGHAI (ICIS news)--Sinopec Shanghai Petrochemical Company Limited said on Wednesday it expects to post record profits in the first quarter of 2009 due to better refining margins and improved petrochemical operations, reversing the losses it incurred in the same period last year.

The company posted a loss of yuan (CNY)200.4m ($29.3m) in the first quarter of 2008.

In a filing to the Shanghai Stock Exchange, the company said the expected good performance can also be attributed to improved pricing mechanism for refined oil products from 1 January.

"As a result of the significant decrease in crude oil prices in the international market, the group’s crude oil processing costs dropped gradually in recent months," the statement said.

Shanghai Petrochem, which runs Asia's largest refinery, said petrochemical vales may have bottomed out following sharp falls late last year triggered by the financial crisis. "The values have re-stabilized, with prices of certain products having risen to a certain extent," it said.

The company is due to announce its first-quarter 2009 results on 20 April.

($1 = CNY6.84)

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By: Judith Wang
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