Net profit of petrochemical specialist Sinostar surges to $15.36m in Q1 2021
The company has bounced back after a net profit loss in the same period last year.
SGX-listed Sinostar PEC Holdings Limited, a producer and supplier of downstream petrochemical products within the Shandong Dongming Petrochemical Industrial Zone recovered from a net profit loss of $58k (CNY2.8m) in 2020 to a surging profit of $15.36m (CNY74.4m) in Q1 2021.
Revenue rose by 22.5% to $198.2m (CNY960.4m) in Q1 2021 from $161.88m (CNY784.2m) in the same period last year.
The group attributed the positive return of revenue to increase in production of most of the company’s products.
“The new polypropylene plant, which is currently undergoing trial productions, registered its maiden revenue contribution to the Group. Gross profit surged more than seven times to $22.67m (CNY109.8m) due to the expansion of gross margins, as average selling prices of petrochemicals such as propylene, polypropylene and MTBE rose during the quarter,” Sinostar said.
The group said it is optimistic with its FY2021 financial performance and will continue to manage its cash flow closely and focus on operational efficiency, optimise production and explore the international market for the group's high-quality polypropylene.