Petrochemical company Sinopec Shanghai Petrochemical Company Limited announced the unaudited operating results of the Company and its subsidiaries for the nine-month period ended September 30, 2006 (the 'Period').
In accordance with PRC Accounting Standards, during the Period, the Group's income from principal operations amounted to RMB37,142 million, an increase of 10.40% as compared to the corresponding period of the previous year. Net loss amounted to RMB60.27 million (2005: Net profit RMB1,749 million).
Mr. Rong Guangdao, Chairman of Shanghai Petrochemical, said, "During January to September 2006, although the Group's income from principal operations increased as compared to the corresponding period of the previous year, due to continued upsurge of international crude oil prices, the Group's production costs also increased significantly."
In addition, there was limited room for increasing product selling prices, in particular for refined oil products, as prices were controlled by the State, and consequently there was a great discrepancy between selling prices on the domestic and international markets.
As a result, the Group's refinery business suffered a serious loss. However, following the two-times price increase on refined oil products, the loss situation for July to September of the Group has been improved.
During the Period, the Group's sales of synthetic fibres, resins and plastics, intermediate petrochemicals and petroleum products amounted to RMB3,547 million, RMB11,736 million, RMB4,865 million and RMB15,022 million, respectively. The consolidated average selling prices of the above-mentioned products increased by 2.70%, 7.33%, 0.69% and 16.94%, respectively.
marketing@alchempro.com
