Sinopec Shanghai Petrochemical (HKG:0338) says that its net profit attributable to equity shareholders for the year of 2011 is expected to decline by 50-70% as compared to the previous year. The company expects the 2011 net profit to be RMB2.704 million under the China accounting standards and system, or RMB2.772 million under the International Financial Reporting Standards.

In 2011, the company's operation costs increased due to higher international crude oil price which fluctuated at high level, while the domestic prices for refined oil products were not adjusted in an adequate and timely manner. Particularly, since the fourth quarter of 2011, the weaker demand for petrochemical products, decline in their prices and intensified competition resulted in a significant decline in the 2011 annual results of the group as compared to the corresponding period of the previous year.