Sinopec Shanghai operating earnings drop in 1st three quarters

29 October 2012 22:06  [Source: ICIS news]

HOUSTON (ICIS)--Sinopec Shanghai Petrochemical saw a year-on-year drop of 6.2% in operating income for the first three quarters of 2012 as a result of macroeconomic factors and domestic oil prices, the producer said on Monday.

The company reported an operating income of yuan (CNY) 69.2bn ($11.1bn, €8.5bn) for the nine-month period ended 30 September.

Despite smooth overall production, the company’s returns “underperformed due to factors in the international and domestic macroeconomy and industry situation, as well as the domestic refined oil price not being fully and timely adjusted accordingly,” said Shanghai Petrochemical chairman Rong Guangdao.

“The industry currently shows signs of steady recovery,” he continued. “However, uncertainties remain in the domestic and international economic environment as well as weak demand from downstream that will pose challenges for the industry in the fourth quarter."

Located in Jinshanwei in southwest Shanghai, Shanghai Petrochemical processes crude oil into products such as synthetic fibres, resins and plastics, intermediate petrochemicals and petroleum products.

($1 = CNY6.26) ($1 = €0.77)

By: Brian Ford
+1 713 525 2653

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