HONG KONG, Oct. 27. 2011 /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 (the "Group") for the nine-month period ended September 30, 2011 (the "Period").
Under the China Accounting Standards for Business Enterprises, the Group's operating income for the Period amounted to RMB73.743 billion, representing an increase of 33.64% over the corresponding period of the previous year. Operating profit amounted to RMB2.192 billion (corresponding period of 2010: RMB2.271 billion). Net profit attributable to equity shareholders of the Company amounted to RMB1.652 billion (corresponding period of 2010: RMB1.792 billion). Basic earnings per share was RMB0.229 (corresponding period of 2010: RMB0.249).
Mr. Rong Guangdao, Chairman of Shanghai Petrochemical, said, "In the first three quarters of 2011, the economic operation of the domestic petrochemical industry maintained a steady trend in general. The Group proceeded actively with various tasks, leading to increases in sales volumes and unit prices of products of the Company. As a result, operating income of the Company increased. However, international crude oil prices fluctuated at high levels, resulting in an increase in operating costs; the prices of domestic refined oil products were not adjusted adequately and timely enough; and the competition was further intensified for petrochemicals. Faced with various uncertainties both at home and abroad and operation pressure, the Company will continue to focus on the operation of its plants, further enhance production and operation, push forward in full scale the construction of the Phase 6 Project, constantly enhance its development potential and strive to improve profitability."
Shanghai Petrochemical is one of the largest petrochemical companies in China in terms of sales revenue and was one of the first Chinese companies to complete a global securities offering. Located in the Jinshan District which is at the southwest of Shanghai, it is a highly integrated petrochemical enterprise which processes crude oil into a broad range of products such as synthetic fibres, resins and plastics, intermediate petrochemicals and petroleum 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.