Despite earning a profit of 2.8 bln yuan for 2007 and having received a 247 mln yuan subsidy from government for the quarter, Sinopec Shanghai Petrochemical Co Ltd. is slated face a refining loss of over 700 mln yuan in Q2 owing to soaring cruse prices. The company announced that the interim results will be released by 28 August and a net refining loss is expected for H1 2008- the blame for which has been pegged on surging oil prices and mounting raw material cost. The Chinese government grants subsidies to refiners to help offset the impact of losses incurred as a result of domestic fuel price caps.
Rising feedstock costs have squeezed petrochemical profit margins. The petrochemical business posted a net profit of 340 mln yuan in Q1, with a 2007 profit of 2.8 bln. The company expects to see profits for the upcoming period as the 9 bln yuan ethylene expansion project has been given green signal increasing capacity to 600,000 tpa against the original 150,000 tpa.
23-Jul-08 
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