Sinopec Shanghai Petrochemical Co Ltd Class A

Sinopec Shanghai Petrochemical reported a 19.3% year-on-year rise in net profit for the first half of 2026. Net profit reached 25.63 billion yuan under Chinese accounting standards, up from 21.48 billion yuan a year earlier. The company recorded a 16 billion yuan provision for asset impairment due to oil and fuel price volatility. Crude oil processing fell 5.6% to 113.31 million metric tons, while refining margin rose 44.1% to 453 yuan per metric ton. Operating profit in the refining segment grew 381.5% as the company expanded crude sourcing outside the Middle East and adjusted its product mix.

Shanghai Petrochemical has released its 2026 interim report, with net profit attributable to the parent company of 300 million yuan, an increase of 763 million yuan compared with the same period last year, turning a year-on-year loss into a profit. The company's total operating revenue was 38.992 billion yuan, net cash flow from operating activities was negative 841 million yuan, and the latest asset-liability ratio was 42.91 percent. Gross margin was 18.13 percent, up 1.36 percentage points from the same period last year, marking a third consecutive year of increase. Return on equity was 1.28 percent, up 3.18 percentage points from the same period last year. Diluted earnings per share were 0.03 yuan, an increase of 0.07 yuan compared with the same period last year. The company had 112,200 shareholders, and the top ten shareholders held 8.759 billion shares, accounting for 83.09 percent of the total share capital.

Shanghai Petrochemical disclosed its earnings forecast, expecting net profit attributable to the parent of 234 million to 351 million yuan in the first half of 2026, compared with a loss of 462 million yuan in the same period last year, achieving a turnaround to profit year-on-year. Deducted non-recurring profit is expected to be 245 million to 367 million yuan, compared with a loss of 439 million yuan in the same period last year. The company stated that the profit was mainly due to the surge in international crude oil prices driven by geopolitical conflicts, adjustments in industry supply and demand, an overall rise in petrochemical product prices, and the price increase of major products outpacing the rise in crude oil processing costs, leading to a year-on-year increase in product gross margins.