MOSCOW (MRC) -- Sinopec Shanghai Petrochemical Company Limited, part of Sinopec Group, has announced the annual results for the twelve months ended 31st December 2019, reported Kemicalinfo.
Net sales of the company in 2019 amounted to RMB88.1 billion (USD12.45 billion), a decrease of 7.90% from the previous year’s RMB95.6 million (USD13.5 billion).
The decrease in sales was attributed to frequent security accidents, industrial zone closures and enterprises’ suspension and rectification. The performance of enterprises declined significantly as the market continued to be weak.
Net profit amounted to RMB2.2 billion (USD310 million), a decrease of 58.47% from the previous year’s RMB5.34 billion (USD750 million).
Fall in profit was due to decreasing margins under severe and complicated domestic and international economic situations. Price of petrochemical products fell under the sluggish market. As the demand for refined oil products slowed down and supplies increased, product competition became increasingly fierce.
Basic earnings per share amounted to RMB0.205 (USD0.029), and the Board proposed to distribute a dividend of RMB0.12 (USD0.017) per share (including tax).
In 2020, the company said it will continue to adhere to the market-oriented and efficiency-centered strategy, constantly improve the level of safety and environmental protection, further strengthen system optimization and cost reduction and promote industrial restructuring, reform and innovation.
The company will also establish leader teams to strive to overcome the impact caused by COVID-19, the pressure of the sharp decline of crude oil prices on the Company’s short-term performance and maintain stable production and operation.
The company plans to process a total of 15.30 million tons of crude oil and produce a total of 9.27 million tons of refined oil, 0.82 million tons of ethylene, 0.66 million tons of paraxylene, 0.92 million tons of plastic resin, 0.65 million tons of raw materials of synthetic fibers, 0.44 million tons of synthetic fiber polymers and 0.20 million tons of synthetic fibers.
As MRC informed before, Sinopec Qilu Petrochemical, another subsidiary of Sinopec, plans to shut the cracker unit in Tianjin in northeast China for scheduled repairs on 15 June, 2020. This cracking unit with a capacity of 900,000 tonnes of ethylene per year and 480,000 tonnes of propylene tons per year will be closed for scheduled repairs until 24 June, 2020.
Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 383,760 tonnes in the first two month of 2020, up by 14% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased due to the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market were 192,760 tonnes in January-February 2020, down by 6% year on year. Homopolymer PP accounted for the main decrease in imports.
Sinopec corp. is one of the world's largest integrated energy and chemical companies. Business Sinopec Corp. includes oil and gas exploration, production and transportation of oil and gas, oil refining, petrochemical production, production of mineral fertilizers and other chemical products. In terms of refining capacity, Sinopec Corp. ranks second in the world, in terms of ethylene capacity - fourth.
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