The weighted average cost of crude oil was RMB 2,875.79 per ton in the first half of the year, representing an increase of 34.95 percent as compared to the corresponding period last year, causing the total cost of crude oil processed to reach RMB13.205 billion, an increase of 48.55 percent as compared to the corresponding period last year. Cost of crude oil of the Group accounted for 69.69 percent of cost of sales.
In the first half of 2005, the Group's capital expenditures amounted to RMB687.4 million, which included the renovation of No. 1 atmosphere and vacuum distillation facility, the 12,000 ton/year polyester filament expansion project, the expansion of 400,000 ton/year PTA facility, the newly built feedstock mutual supply pipeline between Shanghai Petrochemical and SECCO, and the 380,000 ton/year ethylene glycol plant.
The Sino-foreign equity joint venture established between the Group, Sinopec Corp. and BP Chemicals East China Investments Limited was completed and commenced commercial operation. As at June 30, 2005, the Group had invested RMB1.349 billion in the joint venture.
In the second half of the year, other than the aforesaid projects, the Group will also push forward the diesel hydrogenation plant, the renovation of the crude oil refining and other technological renovation projects and investment projects.
Shanghai Petrochemical is one of the largest petrochemical companiesin the PRC and was one of the first Chinese companies to make 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 petroleum categories.
Shanghai Petrochemical Company Limited
marketing@alchempro.com
