|By PR Newswire||
|August 28, 2014 12:18 PM EDT||
HONG KONG, Aug. 28, 2014 /PRNewswire/ -- Sinopec Shanghai Petrochemical Company Limited ("Shanghai Petrochemical" or the "Company") (HKEx: 00338; SSE: 600688; NYSE: SHI) today announced the unaudited operating results of the Company and its subsidiaries (the "Group") prepared under International Financial Reporting Standards ("IFRS") for the six months ended 30 June, 2014 (the "Period").
According to IFRS, turnover for the Group for the Period reached RMB51,345 million, representing a decrease of 10.06% year-on-year. The Group recorded loss after income tax and non-controlling interests of RMB123.6 million (2013 interim: profit after tax and profit attributable to non-controlling interests of RMB473.2 million). Basic loss per share was RMB0.011 (2013 interim: basic earnings per share amounted to RMB0.044, based on a total number of 10.8 billion shares). The Board of Directors did not recommend the distribution of 2014 interim dividend (2013 interim: issuing 3.36 shares for every 10 shares to all shareholders by the premium of capital fund, and 1.64 shares for every 10 shares by surplus fund, as well as distributing cash dividend of RMB0.50 (VAT inclusive) for every 10 shares to all shareholders).
Mr. Wang Zhiqing, Chairman of Shanghai Petrochemical, said, "In the first half of 2014, the PRC economy gradually stabilised despite of a slowdown, maintaining stable growth within a reasonable range and signaling a further slowdown in economic growth. The PRC petrochemical market was impacted by weakened growth of market demand and a relatively rapid increase in production capacity. The petrochemical product market remained sluggish with further intensifying competition in the industry. Facing the challenging operating environment, the Group tackled the challenges head-on to maintain smooth operations of its plants. It thoroughly implemented system optimisation. The Group also continued its efforts in technological advancement and digitisation of information, further strengthening internal corporate management and cutting its losses by optimising production efficiency."
In the first half of 2014, the Group's net sales reached RMB46,690.8 million, representing a decrease of 10.49% year-on-year. Of this, net sales of synthetic fibres, resins and plastics, intermediate petrochemicals and petroleum products declined by 11.84%, 13.23%, 29.97% and 9.00% respectively. Net sales of trading of petrochemical products rose by 18.21%.
Under challenging economic conditions during the Period, the Group lowered crude oil processing volume in view of the market conditions, upstream and downstream material balance and plant maintenance, which reduced the total volume of goods produced by 12.84% year-on-year. During the Period, the Group processed 7,225,700 tons of crude oil (including 730,900 tons of crude oil processed on a sub-contract basis), representing a decrease of 6.25% year-on-year. Total production of refined oil products reached 4,251,200 tons, representing a decrease of 4.45% year-on-year. Of this, the output of gasoline was 1,514,700 tons, representing an increase of 9.63% year-on-year; output of diesel was 2,033,300 tons, representing a decrease of 19.15% year-on-year; and output of jet fuel was 703,200 tons, representing an increase of 27.16% year-on-year. The Group produced 404,700 tons of ethylene and 364,600 tons of paraxylene, representing a decrease of 15.46% and 20.20% year-on-year respectively. The Group also produced 487,900 tons of synthetic resins and plastic (excluding polyesters and polyvinyl alcohol), representing a decrease of 11.31% year-on-year; 361,700 tons of synthetic fibre monomers, representing a decrease of 19.34% year-on-year; 204,700 tons of synthetic fibre polymers, representing a decrease 22.70% year-on-year; and 116,900 tons of synthetic fibres, representing a decrease of 8.39% year-on-year. The Group's output-to-sales ratio and receivable recovery ratio were 100.54% and 100.00% respectively for the Period.
In the first half of 2014, global crude oil maintained the balance between supply and demand. International crude oil prices were volatile in an upward trend mainly due to the impact of the geopolitical situation. The average unit cost of crude oil (for the Group's own account) was RMB4,866.94 per ton, representing an increase of 0.28% year-on-year. The Group's cost of crude oil accounted for 68.38% of the total cost of sales.
During the Period, the Group continually enhanced its management of process technology for its plants while improving technical and economic indicators. The first phase of production plant maintenance for the year, with a focus on residual oil hydrogenation plants, was completed. The Group continued to tighten its management of specialised equipment, key units and gear transmission equipment, as well as anti-corrosion for equipment and management of heaters. The Group continued to leverage its competitive strengths in the integration of its refinery and petrochemical segments. Tapping fully on the high flexibility of its refinery plants, the Group increased the procurement and refining volume of low-grade crude oil and increased its focus on crude oil procurement, which contributed to lower crude oil cost. Refinery and petrochemical production were also optimised. The Group further strengthened refined oil product structure by lowering production of several lower-margin petrochemical products and boosting production of high-end gasoline. The Group enhanced the contribution margin tracing of the plants, and suspended production at some plants in phases while prioritising the production of more profitable and marketable products in line with market conditions. Through various innovative financing methods, the Group successfully implemented various offshore financing measures such as overseas agency payments and risk participation, lowering its capital costs. During the Period, China Jinshan Associated Trading Corporation, the Group's holding subsidiary, has established the Shanghai Jinshan Trading Corporation. in the Shanghai Free Trade Pilot Zone to further expand the Group's trading segment, increase its trading volume, expand its financing channels, and lower financing costs.
Looking ahead, Mr. Wang Zhiqing said, "In the second half of 2014, the global economy is expected to be slightly improved over the first half. With reforms and policy adjustments, the PRC economy is expected to be relatively stable. Given the stable economy and the rebound in demand in the PRC, the petrochemical industry is expected to undergo steady and moderate growth. International oil prices are expected to continue to fluctuate at a prevailing high level. Facing a challenging market environment, we will focus on improving the quality and efficiency of our development, and will continue to focus on safety and environmental protection as well as stable production. The Group will continue to consolidate its system optimisation, cost reductions and strict management, as it strives to seize the opportunities arising from the favorable market environment and to achieve a turnaround in its efficiency."
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 in southwest Shanghai, the Group is a highly-integrated petrochemicals 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 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, due to the PRC government's implementation of macro-economic control measures to curb over-heating of the PRC 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 Company may not be able to raise the prices of its products as appropriate, thus adversely affecting 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 the 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 laws.
For the financial tables that accompany this release, please refer to the following PDF: http://photos.prnasia.com/prnk/20140828/8521404871
SOURCE Sinopec Shanghai Petrochemical Company Limited
SYS-CON Events announced today that JFrog, maker of Artifactory, the popular Binary Repository Manager, will exhibit at SYS-CON's @DevOpsSummit Silicon Valley, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Based in California, Israel and France, founded by longtime field-experts, JFrog, creator of Artifactory and Bintray, has provided the market with the first Binary Repository solution and a software distribution social platform.
Oct. 4, 2015 03:30 PM EDT Reads: 428
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical...
Oct. 4, 2015 03:15 PM EDT Reads: 191
As enterprises capture more and more data of all types – structured, semi-structured, and unstructured – data discovery requirements for business intelligence (BI), Big Data, and predictive analytics initiatives grow more complex. A company’s ability to become data-driven and compete on analytics depends on the speed with which it can provision their analytics applications with all relevant information. The task of finding data has traditionally resided with IT, but now organizations increasingl...
Oct. 4, 2015 03:00 PM EDT Reads: 353
“The Internet of Things transforms the way organizations leverage machine data and gain insights from it,” noted Splunk’s CTO Snehal Antani, as Splunk announced accelerated momentum in Industrial Data and the IoT. The trend is driven by Splunk’s continued investment in its products and partner ecosystem as well as the creativity of customers and the flexibility to deploy Splunk IoT solutions as software, cloud services or in a hybrid environment. Customers are using Splunk® solutions to collect ...
Oct. 4, 2015 02:45 PM EDT Reads: 549
SYS-CON Events announced today that Interface Masters Technologies, provider of leading network visibility and monitoring solutions, will exhibit at the 17th International CloudExpo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Interface Masters Technologies is a leading provider of high speed networking solutions focused on Gigabit, 10 Gigabit, 40 Gigabit and 100 Gigabit Ethernet network access and connectivity products. For over 20 ye...
Oct. 4, 2015 02:45 PM EDT Reads: 620
SYS-CON Events announced today that Secure Infrastructure & Services will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Secure Infrastructure & Services (SIAS) is a managed services provider of cloud computing solutions for the IBM Power Systems market. The company helps mid-market firms built on IBM hardware platforms to deploy new levels of reliable and cost-effective computing and hig...
Oct. 4, 2015 02:30 PM EDT Reads: 665
In recent years, at least 40% of companies using cloud applications have experienced data loss. One of the best prevention against cloud data loss is backing up your cloud data. In his General Session at 17th Cloud Expo, Bryan Forrester, Senior Vice President of Sales at eFolder, will present how organizations can use eFolder Cloudfinder to automate backups of cloud application data. He will also demonstrate how easy it is to search and restore cloud application data using Cloudfinder.
Oct. 4, 2015 02:30 PM EDT Reads: 342
SYS-CON Events announced today that Agema Systems will exhibit at the 17th International Cloud Expo®, which will take place on November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Agema Systems is the leading provider of critical white-box rack solutions to data centers through the major integrators and value added distribution channels.
Oct. 4, 2015 02:30 PM EDT Reads: 610
Clearly the way forward is to move to cloud be it bare metal, VMs or containers. One aspect of the current public clouds that is slowing this cloud migration is cloud lock-in. Every cloud vendor is trying to make it very difficult to move out once a customer has chosen their cloud. In his session at 17th Cloud Expo, Naveen Nimmu, CEO of Clouber, Inc., will advocate that making the inter-cloud migration as simple as changing airlines would help the entire industry to quickly adopt the cloud wit...
Oct. 4, 2015 02:30 PM EDT Reads: 369
SYS-CON Events announced today that Harbinger Systems will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Harbinger Systems is a global company providing software technology services. Since 1990, Harbinger has developed a strong customer base worldwide. Its customers include software product companies ranging from hi-tech start-ups in Silicon Valley to leading product companies in the US a...
Oct. 4, 2015 02:00 PM EDT Reads: 714
Organizations already struggle with the simple collection of data resulting from the proliferation of IoT, lacking the right infrastructure to manage it. They can't only rely on the cloud to collect and utilize this data because many applications still require dedicated infrastructure for security, redundancy, performance, etc. In his session at 17th Cloud Expo, Emil Sayegh, CEO of Codero Hosting, will discuss how in order to resolve the inherent issues, companies need to combine dedicated a...
Oct. 4, 2015 02:00 PM EDT Reads: 386
Interested in leveraging automation technologies and a cloud architecture to make developers more productive? Learn how PaaS can benefit your organization to help you streamline your application development, allow you to use existing infrastructure and improve operational efficiencies. Begin charting your path to PaaS with OpenShift Enterprise.
Oct. 4, 2015 02:00 PM EDT Reads: 305
SYS-CON Events announced today that Machkey International Company will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Machkey provides advanced connectivity solutions for just about everyone. Businesses or individuals, Machkey is dedicated to provide high-quality and cost-effective products to meet all your needs.
Oct. 4, 2015 01:45 PM EDT Reads: 250
Clutch is now a Docker Authorized Consulting Partner, having completed Docker's certification course on the "Docker Accelerator for CI Engagements." More info about Clutch's success implementing Docker can be found here. Docker is an open platform for developers and system administrators to build, ship and run distributed applications. With Docker, IT organizations shrink application delivery from months to minutes, frictionlessly move workloads between data centers and the cloud and achieve 2...
Oct. 4, 2015 01:45 PM EDT Reads: 372
SYS-CON Events announced today that ProfitBricks, the provider of painless cloud infrastructure, will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. ProfitBricks is the IaaS provider that offers a painless cloud experience for all IT users, with no learning curve. ProfitBricks boasts flexible cloud servers and networking, an integrated Data Center Designer tool for visual control over the...
Oct. 4, 2015 01:00 PM EDT Reads: 693