Revenue Increases by 18.13% to RMB91,962 Million
Continuously Tamping the Foundation of Production and Operation
Continuous Optimization of Operation and Cost Reduction
HONG KONG, March 21, 2018 /PRNewswire/ -- Sinopec Shanghai
Petrochemical Company Limited ("Shanghai Petrochemical" or the "Company") (HKEX: 00338; SSE: 600688; NYSE: SHI) today announced
the audited operating results of the Company and its subsidiaries (the "Group") prepared under International Financial Reporting
Standards ("IFRS") for the year ended 31 December 2017 (the "Year").
According to IFRS, revenue of the Group for the Year increased by 18.13% to RMB91,962 million.
The net profit attributable to owners of the Company was RMB6,143.2 million, representing an
increase of 2.93% compared to last year. Basic earnings per share amounted to RMB0.569 (2016:
RMB0.553). The Board of Directors proposed the distribution of final dividend in respect of the
year ended 31 December 2017 of RMB0.30 per share (including tax) for
the Year (2016: RMB0.25 per share).
Mr. Wu Haijun, Chairman of Shanghai Petrochemical, said, "In 2017, the world economy had shown strong recovery with
accelerated growth of developed economies and overall growth rally of emerging and developing economies. China had pushed forward supply-side structural reform to continue to release economic vitality, power and
potential, which achieved national economy in stable state with good momentum and annual GDP (gross domestic product) growth of
6.9% that was better than expectation. China's petrochemical industry was operated in stable
trend with good momentum with basically steady production, overall stable market demands, risen product price and improved
industrial efficiency. During the year, centered on overall efficiency and profits, the Group made great efforts to seize the
favorable market situation and actively carried out safety and environmental protection, optimizing operation, market development
and cost reduction, which achieved good results in production and operation and created a high level of economic benefits in
history."
In 2017, the Group's net sales amounted to RMB79,218.3 million, representing an increase of
20.14% year-on-year. Benefited from the increase in the costs of raw materials, the sales price grew generally compared to the
last year. Net sales of synthetic fibres, resins and plastics, intermediate petrochemicals, petroleum products and trading of
petrochemical products increased by 8.07%, 4.30%, 14.08%, 34.99% and 15.12%, respectively.
The Group operated facilities smoothly during the Year. Basically flat processing volume of crude oil and less processing
business made increasing amount of product and commodity of the Group with total volume of commodities of 13,717,500 tons,
increasing 6.91% than in last year. Compared with last year, the Group processed 14,352,800 tons of crude oil in 2017 (including
1,605,600 tons of processing on given materials) with slight increase of 0.35%. The Group produced 3,166,100 tons of gasoline, up
by 9.98%; 3,863,800 tons of diesel, down by 0.47%, and 1,574,100 tons of jet fuel, down by 1.51%. The Group produced 766,900 tons
of ethylene, down by 7.11%; 632,900 paraxylene, down by 5.62%. The product sales rate was 99.80% and the loan return rate was
100%. The product continued to keep high quality.
In 2017, international crude oil prices showed a V-shaped trend. The average unit cost of crude oil processed by the Group
(for its own account) was RMB2,581.35 per ton, up by 30.40% over the previous year. The Group's
cost of processing crude oil in 2017 accounted for 45.45% of the total cost of sales.
For the Year under review, the Group continuously tamped the foundation of production and operation. It continued to
strengthen Health, Safety and Environment management, made clear responsibilities of production safety for correspondent parties,
carried out risk identification and control, as well as continuously developed hidden danger troubleshooting activities in
different ways and made rectification. In addition, it intensified the source control of environmental protection and paid
special attention to the equipment maintenance, so as to enhance process management and smoothly complete overhaul and realized
normal establishment and stable operation. On the other hand, the Group continued to optimize its production and operation, and
costs reduction to strive to expand its margin. The Group accurately grasped the pace of crude oil procurement, controlled
reasonable crude oil inventory, strengthened storage and transportation management of crude oil and reduced the cost of crude
oil. Also, it actively strived for the optimal allocation of refined oil, optimized gasoline blending by measures of optimization
and adjustment of catalytic device operation and outsourcing processing of low octane components to try to improve the gasoline
production and high-grade gasoline ratio.
Looking forward, Mr. Wu Haijun said, "In 2018, the world economy is expected to continue its recovery momentum. China will continue to maintain the general keynote of work which is to make progress while ensuring
stability; continue with the supply-side structural reform as the main direction; and make overall plans for carrying out various
tasks to maintain growth, boost reforms, readjust the structure, improve people's livelihood and prevent risks. China's economy is anticipated to remain stable with good development momentum. As the escalating global
economy will fuel an increasing demand for petrochemical products, the global petrochemical industry is expected to remain stable
with a rise trend in 2018. Since the supply-side reform is proceeding and the growth in downstream demand remains stable in
China, the petrochemical industry is expected to continue to see structural improvement to the
supply and demand. However, since there is no fundamental change in the imbalance between the supply-side structural surplus and
the structural shortage in the domestic refined oil market and petrochemicals market, the expansion of the scale of domestic
large private refining and petrochemical enterprises and the recovery of coal chemical production capacity will further intensify
market competition in the future. In 2018, the Group will continue to adopt a market-oriented and benefit-centred approach, step
up safe and green development as well as the management of production and operation, optimize resources allocation and tone up
structural adjustment, striving to maximize the overall value."
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 at Jinshanwei 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; 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 Company may not be able to raise the prices of its products as appropriate, 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 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.
Encl: Consolidated Income Statement
Sinopec Shanghai Petrochemical Company Limited
|
201 7 Annual Results
|
(Prepared under International Financial Reporting
Standards)
|
Consolidated Income Statement
|
|
|
For the year ended 3
1 December
|
|
2017
|
|
2016
|
|
RMB'000
|
|
RMB'000
|
Revenue
|
91,962,415
|
|
77,842,906
|
Sales taxes and surcharges
|
(12,744,088)
|
|
(11,906,438)
|
Net sales
|
79,218,327
|
|
65,936,468
|
Cost of sales
|
(72,398,288)
|
|
(58,731,674)
|
Gross profit
|
6,820,039
|
|
7,204,794
|
|
|
|
|
Selling and administrative expenses
|
(535,259)
|
|
(546,087)
|
Other operating income
|
119,010
|
|
197,306
|
Other operating expenses
|
(21,379)
|
|
(24,275)
|
Other gains/ (losses) - net
|
19,462
|
|
(53,882)
|
Operating profit
|
6,401,873
|
|
6,777,856
|
|
268,379
|
|
137,302
|
Finance income
|
|
Finance expenses
|
(61,047)
|
|
(53,617)
|
Finance income - net
|
207,332
|
|
83,685
|
|
|
|
|
Share of profit of investments
accounted for using the equity method
|
1,243,693
|
|
916,754
|
Profit before income tax
|
7,852,898
|
|
7,778,295
|
Income tax expense
|
(1,698,739)
|
|
(1,796,822)
|
Profit for the year
|
6,154,159
|
|
5,981,473
|
Profit attributable to:
|
|
|
|
- Owners of the Company
|
6,143,222
|
|
5,968,466
|
- Non-controlling interests
|
10,937
|
|
13,007
|
|
6,154,159
|
|
5,981,473
|
Earnings per share attributable to
owners of the Company for the year
(expressed in RMB per share)
|
|
|
|
Basic earnings per share
|
RMB0.569
|
|
RMB0.553
|
Diluted earnings per share
|
RMB0.568
|
|
RMB0.552
|
SOURCE Sinopec Shanghai Petrochemical Company Limited