Sinopec Shanghai Petrochemical Company (338) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 was RMB 22.46 billion, down 9.87% year-over-year; nine-month revenue was RMB 65.99 billion, down 5.53% year-over-year.

• Net profit attributable to equity shareholders for Q3 was RMB 6.63 million, a 97.53% decrease year-over-year; nine-month net profit was RMB 34.54 million.

• Basic earnings per share for Q3 was RMB 0.001, down 96% year-over-year; nine-month EPS was RMB 0.003.

• Significant decline in profitability attributed to lower sales volumes, decreased average prices, and higher unit costs for petrochemical products.

Financial highlights

• Gross profit of petrochemical products decreased year-over-year in Q3, leading to lower operating results.

• Net cash flows from operating activities for Q3 were RMB 10.08 billion; nine-month net cash flows were RMB 10.43 billion.

• Total assets at September 30, 2024, were RMB 45.19 billion, up 13.95% from year-end 2023.

• Total equity attributable to shareholders was RMB 24.73 billion, a slight decrease of 0.37% from year-end 2023.

• Net profit improved for the nine-month period compared to a loss in the prior year, mainly due to improved gross profit and reduced cash outflows.

Outlook and guidance

• Management notes that lower sales, falling product prices, and increased costs negatively impacted Q3 results; improvement in gross profit seen over the nine-month period.