High crude oil prices and government caps on refined oil product prices have taken their toll on performance of Chinese oil and petrochem majors. Sinopec Shanghai Petrochemical Co. Ltd. has booked a net loss of US$54.56 mln in H1 under Chinese accounting standards. Price of major feedstock crude oil has breached the US$100 mark since February, peaking at about US$140.
The company processed 5.0665 mln tons of crude oil in the 6 months, up 12.27% yoy, including 4.8933 mln tons of imported oil and 173,200 tons of offshore oil. The company produced 480,900 tons of ethylene and 265,000 tons of propylene in the first half, up 0.92% and 6.85% respectively, while output of synthetic resins and plastics fell 3.99% to 536,100 tons. Net sales from petroleum products, intermediate petrochemicals and resins and plastics increased by 43.88%, 44.30% and 5.51% yoy respectively after average selling prices for the three products rose 16.67%, 20.4% and 9.23%.
Operating revenue in the six months rose 22.41% yoy to 32.91 bln yuan, while operating costs were up 40.65% at 33.3 bln yuan. Weighted average cost of crude oil was 5,068.88 yuan/ton, up 42.88% yoy, while the total cost of processing crude oil stood at 25.68 bln yuan, up 60.5%. Capital expenditure in the first six months was 416 million yuan.
During the period, the company received a total of 1.6277 billion yuan in government subsidies as compensation for losses incurred due to the caps on domestic prices and measures taken to stabilize the supply of petroleum products. The central government started to provide subsidies to its largest shareholder China Petroleum & Chemical Corp (Sinopec) for losses suffered from processing imported crude oil from April 1, as well as value-added tax refunds.
The company does not have upstream oil and gas operations, and as a result, it is more sensitive to rising crude oil prices. Under international accounting standards, the company booked operating revenue of 32.87 billion yuan, up from 26.82 billion a year earlier, with a net loss of 358.08 million, compared to a net profit of 1.79 billion a year earlier. The company said downstream petrochemical prices declined in line with a recent dip in international crude oil prices, and it has yet to fully dispose of expensive crude oil in transit or in stock.
The company processed 5.0665 mln tons of crude oil in the 6 months, up 12.27% yoy, including 4.8933 mln tons of imported oil and 173,200 tons of offshore oil. The company produced 480,900 tons of ethylene and 265,000 tons of propylene in the first half, up 0.92% and 6.85% respectively, while output of synthetic resins and plastics fell 3.99% to 536,100 tons. Net sales from petroleum products, intermediate petrochemicals and resins and plastics increased by 43.88%, 44.30% and 5.51% yoy respectively after average selling prices for the three products rose 16.67%, 20.4% and 9.23%.
Operating revenue in the six months rose 22.41% yoy to 32.91 bln yuan, while operating costs were up 40.65% at 33.3 bln yuan. Weighted average cost of crude oil was 5,068.88 yuan/ton, up 42.88% yoy, while the total cost of processing crude oil stood at 25.68 bln yuan, up 60.5%. Capital expenditure in the first six months was 416 million yuan.
During the period, the company received a total of 1.6277 billion yuan in government subsidies as compensation for losses incurred due to the caps on domestic prices and measures taken to stabilize the supply of petroleum products. The central government started to provide subsidies to its largest shareholder China Petroleum & Chemical Corp (Sinopec) for losses suffered from processing imported crude oil from April 1, as well as value-added tax refunds.
The company does not have upstream oil and gas operations, and as a result, it is more sensitive to rising crude oil prices. Under international accounting standards, the company booked operating revenue of 32.87 billion yuan, up from 26.82 billion a year earlier, with a net loss of 358.08 million, compared to a net profit of 1.79 billion a year earlier. The company said downstream petrochemical prices declined in line with a recent dip in international crude oil prices, and it has yet to fully dispose of expensive crude oil in transit or in stock.
