HONG KONG, Oct. 27 /PRNewswire-Asia/ -- Sinopec Shanghai Petrochemical 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 September 30, 2010 (the "Period").
Under the China Accounting Standards for Business Enterprises, the Group's operating income for the Period amounted to RMB55.180 billion, representing an increase of 61.04% over the corresponding period of the previous year. Operating profit amounted to RMB2.271 billion (same period of 2009: RMB2.013 billion). Net profit attributable to equity shareholders of the Company amounted to RMB1.792 billion, representing an increase of 16.50% over the corresponding period of the previous year. Basic earnings per share was RMB0.249 (same period of 2009: RMB0.214).
Mr. Rong Guangdao, Chairman of Shanghai Petrochemical, said, "In the first three quarters of 2010, the overall domestic and international macro-economic environment was better than that of the previous year, with China's petrochemical industry having maintained a positive trend. However, on the other hand, international crude oil prices continued to rise, and market competition was further intensified due to newly added production capacities. Faced with the aforesaid production and operation conditions, the Group further strengthened management, focused on safe, steady, long-term, fully loaded and optimized plant operation, and continued to make progress in technological advancement, product mix adjustment, and energy saving and unit feedstock consumption reduction. As a result, sales volumes increased significantly as compared to the corresponding period of the previous year, and technical and economic indices continued to improve, which in turn led to an improved performance in operating results for the first three quarters."
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 Shanghai, 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, 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.
Please visit the following link for the Consolidated Income Statement (Unaudited): http://www.prnasia.com/sa/attachment/2010/10/20101027768738.pdf
For further information, please contact: Ms. Leona Zeng / Ms. Christy Lai Rikes Hill & Knowlton Limited Tel: +852-2520-2201 Fax: +852-2520-2241
SOURCE Sinopec Shanghai Petrochemical Company Limited