Oct. 29, 2012 /PRNewswire/ -- Sinopec Shanghai Petrochemical Company Limited ("Shanghai Petrochemical" or the "Company") (HKEx: 338; SSE: 600688; NYSE: SHI) today announced the unaudited operating results of the Company and its subsidiaries (the "Group") for the nine-month period ended
September 30, 2012 (the "Period").
As according to the China Accounting Standards for Business Enterprises, the Group's operating income for the Period amounted to RMB69.153 billion, representing a decrease of 6.22% over the corresponding period of the previous year. Net loss attributable to equity shareholders of the Company amounted to RMB1.609 billion (corresponding period of 2011: net profit attributable to equity shareholders of the Company of RMB1.652 billion). Basic loss per share was RMB0.224 (corresponding period of 2011: basic earnings per share of RMB0.229).
Mr. Rong Guangdao, Chairman of Shanghai Petrochemical, said, "Overall production was smooth in the first three quarters of 2012. However, the Company's overall economic returns underperformed due to factors in the international and domestic macro-economy and industry situation, as well as the domestic refined oil price not being fully and timely adjusted accordingly. Facing the challenging production and operational environment, by strengthening management, optimizing production and enhancing efficiency, the Group pushed forward the construction of the Phase 6 Project, and at the same time maintained stable production and operations, provided a steady supply of refined oil and reduced inventory levels. The industry currently shows signs of steady recovery. However, uncertainties remain in the domestic and international economic environment as well as weak demand from downstream that will pose challenges for the industry in the fourth quarter."
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. The Company is located in Jinshanwei in southwest Shanghai. It is a highly integrated petrochemical enterprise that 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 such as 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; the risk of 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 the management; the risk of 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.