Sinopec Shanghai Petrochemical Company Limited (HKEX: 00338; SSE: 600688; NYSE: SHI) announced the annual results for the twelve months ended 31st December 2019.
Net sales of the company in 2019 amounted to RMB88.1 billion ($12.45 billion), a decrease of 7.90% from the previous year’s RMB95.6 million ($13.5 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 ($310 million), a decrease of 58.47% from the previous year’s RMB5.34 billion ($750 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 ($0.029), and the Board proposed to distribute a dividend of RMB0.12 ($0.017) per share (including tax).
Business Plans in 2020
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.