Shanghai Petrochemical sees profit in first half

HONG KONG, June 10 (Reuters) - Shanghai Petrochemical (0338.HK) (600688.SS) on Wednesday said it expects to return to profit during the first half of 2009 as raw materials prices dropped following a fall in international crude oil prices.

The company said the profitability of its oil refining operation improved following fuel tax reforms in China and its product prices stabilised after sharp declines.

It posted a loss of 372.77 million yuan ($54.54 million) for the first half of 2008, in accordance with mainland China accounting stantards.

"The impact of the financial crisis continues to persist and spread, and there has been no marked sign of a revival in the global economy yet," the company said in a statement. "Industry competition has further intensified and there is an upward trend in crude oil prices."

For statement please click here

Shanghai Petrochemical shares rose 2.35 percent to end at HK$2.61 on Wednesday, compared with a 4.03 percent rise in broader Hong Kong market. .HSI

(US$1=HK$7.8=6.833 yuan)

(Reporting by Donny Kwok; editing by Chris Lewis)