Profit Attributable to Shareholders Grows 15.96% to RMB1.763
Billion HONG KONG, Aug. 25 /Xinhua-PRNewswire-FirstCall/ -- Sinopec
Shanghai Petrochemical Company Limited ('Shanghai Petrochemical' or
the 'Company') (HKEx:338; SSE: 600688; NYSE: SHI) announced today
the unaudited interim results of the Company and its subsidiaries
(the 'Group') for the six-month periods ended June 30, 2005 (the
'Period'). Under the International Financial Reporting Standards,
turnover for the Period increased by 23.11% over the corresponding
period last year to approximately RMB21.886 billion; profit before
tax was RMB2.158 billion, an increase of 18.57% over the
corresponding period last year; profit attributable to shareholders
was RMB1.763 billion, an increase of 15.96% as compared to the
corresponding period last year; and earnings per share was RMB0.245
(2004 interim: RMB0.211). The Board of Directors did not recommend
any interim dividend for 2005 (2004 interim: Nil). Mr. Rong
Guangdao, Chairman of Shanghai Petrochemical, said, 'With the
overall effect of the State's macro-economic control measures
becoming more visible, the domestic economy has sustained a steady
and rapid growth. In addition, international crude oil prices
continued to increase and then fluctuated at a high level. As a
result of the above factors, the petroleum and petrochemical
industry in China continued to keep the momentum of strong
production and sales in the first half year, resulting in an
overall increase in output, prices and profits. The Group actively
captured the opportunities arising from the sustaining prosperous
cycle of the global petrochemical industry, continued rapid growth
of the domestic economy, and a steady and rapid growth of the
petrochemical industry, and put in efforts to overcome various
adverse factors such as the upsurge in the prices of fuel oil,
electricity, coal and transportation and the decline in the prices
of certain products. As a result, the Group maintained steady
production and operation and improved performance as compared to
the corresponding period last year.' In the first half of 2005, the
Group realized net sales of RMB21.508 billion, an increase of
23.41% as compared to the corresponding period last year. Net sales
and average selling prices of the Group's four major product
categories, namely refined petroleum products, intermediate
petrochemicals, resins and plastics and synthetic fibres, increased
significantly. Compared to the first half of 2004, net sales of
these four major product categories increased by 35.84%, 52.46%,
27.47% and 1.37%, respectively, while their average selling prices
(excluding tax) increased by 21.44%, 36.20%, 22.86% and 14.34%,
respectively. During the Period, the Group processed 4,780,800 tons
of crude oil and produced 1,602,400 tons of diesel and 360,900 tons
of jet fuel, representing increases of 5.52%, 18.23% and 9.24%,
respectively, as compared to the corresponding period last year.
The output of gasoline was 417,700 tons, a decrease of 13.01% as
compared to the corresponding period last year. The output of
ethylene, synthetic fibre feed-stocks and synthetic fibre polymers
in the first half year amounted to 491,200 tons, 370,200 tons and
287,300 tons, respectively, representing increases of 2.10%, 14.16%
and 9.88%, respectively, as compared to the corresponding period
last year. The output of propylene, synthetic resins and plastics
as well as synthetic fibres were 262,900 tons, 529,000 tons and
179,600 tons, respectively, representing decreases of 1.23%, 2.08%
and 2.93%, respectively, over the corresponding period last year.
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% 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% as compared to the corresponding period last year. Cost
of crude oil of the Group accounted for 69.69% 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. Looking ahead, Mr. Rong said, 'In the second
half of 2005, due to limited capabilities in increasing production
by OPEC countries, reduction in production increment by non-OPEC
countries, geo-political risks and rampant speculations by
speculative funds, it is anticipated that prices of crude oil will
continue to rise. At the same time, following the completion and
operation of large ethylene projects such as Shanghai SECCO and
Nanjing Yangba, the imbalance in the supply and demand for
petrochemical products in the PRC will subside, and the industry's
profitability level will significantly decline. Given the upsurge
of crude oil costs and the slowdown of domestic demand for
petrochemical products, in the second half of 2005, the Group will
track closely market changes, make timely adjustments to its sales
strategies, strengthen internal management, improve operation
efficiency, and make efforts to complete its various work targets
for the whole year, so as to lay a good foundation for the
Company's comprehensively coordinated and sustainable development.'
Shanghai Petrochemical is one of the largest petrochemical
companies in 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. 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, including as a result of the PRC government's
macro-economic control measures to curb over-heating; 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; not be able to raise its prices 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. Sinopec Shanghai Petrochemical Company Limited 2005 Interim
Results (Prepared under International Financial Reporting
Standards) Consolidated Income Statement (Unaudited) Six-month
periods ended 30 June 2005 2004 RMB'000 RMB'000 Turnover 21,886,472
17,778,137 Sales taxes and surcharges (378,135) (350,253) Net sales
21,508,337 17,427,884 Cost of sales (18,949,942) (15,097,255) Gross
profit 2,558,395 2,330,629 Selling and administrative expenses
(196,886) (228,604) Other operating income 137,365 100,814 Other
operating expenses: Employee reduction expenses (90,792) (86,713)
Others (43,164) (107,471) Profit from operations 2,364,918
2,008,655 Share of losses of associates (93,723) (17,392) Net
financing costs (113,407) (171,495) Profit before tax 2,157,788
1,819,768 Taxation (359,960) (258,124) Profit after tax 1,797,828
1,561,644 Attributable to: Equity holders of the parent 1,763,442
1,520,725 Minority interests 34,386 40,919 Profit after tax
1,797,828 1,561,644 Basic earnings per share RMB0.245 RMB0.211 For
further information, please contact: Ms. Sally Wong / Ms. Sharon
Wong Rikes Communications Limited Tel: +852-2520-2201 Fax:
+852-2520-2241 DATASOURCE: Sinopec Shanghai Petrochemical Company
Limited CONTACT: Ms. Sally Wong or Ms. Sharon Wong of Rikes
Communications Limited for Sinopec Shanghai Petrochemical Company
Limited, +852-2520-2201, or +852-2520-2241
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