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Sinopec Shanghai net soars 689pc

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Sinopec Shanghai Petrochemical - China's largest maker of ethylene, a key plastics raw material - last year boosted net profit to 916.36 million yuan (about HK$860.28 million).

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It was 689 per cent better than the 116.04 million yuan in 2001.

After 2001's weak demand, high crude costs and keen competition from its domestic and foreign rivals, the H share last year capitalised on increased demand and cheaper crude costs. The sharp year-on-year contrast was due to higher refining margins - the difference between crude costs and product prices.

The operating profit margin rose to 6.4 per cent last year, from 1.9 per cent in 2001.

The diversified petrochemicals producer - a subsidiary of Asia's largest crude oil refiner China Petrochemical & Chemical (Sinopec) - also makes acrylic fibres, resins, plastics, petrol and diesel.

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The profit was still a far cry from the record 2.12 billion yuan in 1995, and the 1.49 billion yuan in 1994.

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