Sinostar Pec expects Q2 net loss due to lower selling prices

MAINBOARD-LISTED Sinostar Pec Holdings on Sunday announced it expects to report a net loss for the second quarter ended June 30.

The company revealed this in a profit guidance. 

The loss is anticipated mainly due to the decrease in the overall market selling price of petrochemical products, the firm said in the filing. 

Sinostar is a producer and supplier of downstream petrochemical products in China, with production facilities in the Dongming County of Shandong province.

In Q1 of this year, Sinostar's earnings had surged 52.4 per cent year-on-year to 32.4 million yuan (S$6.4 million), boosted by contributions from its newly-acquired subsidiary Dongming Qianhai, as well as higher product margins. 

Details of Sinostar's latest financial performance will be disclosed when it releases its unaudited consolidated Q2 financial results on or before Aug 14.

Sinostar shares closed at S$0.185 on Friday.