OREANDA-NEWS. February 01, 2012. Sinopec Shanghai Petrochemical Co. (338), a unit of China’s largest oil refiner, fell the most in two months in U.S. trading after saying that 2011 earnings probably slid as much as 70 percent.

American depositary receipts of Sinopec Shanghai declined 5.3 percent, the most since Nov. 9, to a 1 1/2-week low of USD 36.84 in New York. Each ADR represents 100 common shares in the company.

The Shanghai-based subsidiary of China Petroleum and Chemical Corp., known as Sinopec, said net income for 2011 probably fell 50 percent to 70 percent from 2010, according to a statement yesterday to the Hong Kong Stock Exchange. The forecast was based on preliminary estimates, the company said.

Sinopec Shanghai’s operational costs increased in 2011 due to higher international crude prices while “domestic prices for refined oil products weren’t adjusted in an adequate and timely manner,” the company said in the statement. Demand for petrochemical products also weakened in the fourth quarter, Sinopec Shanghai said.