Bloomberg reported that Sinopec Shanghai Petrochemical Co a unit of China largest oil refiner fell the most in two months in US trading after saying that 2011 earnings probably slid as much as 70%.

American depositary receipts of Sinopec Shanghai declined 5.3%, the most since November 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% to 70% from 2010. The forecast was based on preliminary estimates.

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.

Sinopec Shanghai said demand for petrochemical products also weakened in the fourth quarter.

(Sourced from Bloomberg)