STRONG PETROCHEMICAL HOLDINGS LIMITED
Climate Impact & Sustainability Data (2005-04 to 2008-10)
Reporting Period: 2005-04 to 2008-10
Environmental Metrics
Climate Goals & Targets
Medium-term Goals:
- Expand product types and trading volume
- Establish representative office in Shanghai
- Apply for business licenses for wholesale and storage of crude oil (over 8 years)
Short-term Goals:
- Completion of Nantong Project in Q3 2009
- Obtain petroleum products storage operation license in Q4 2009
- Obtain petroleum products wholesale operation license in Q2 2010
Environmental Challenges
- Volatile oil prices
- Slowdown in LSWR sales due to insufficient supply
- Gross loss from three crude oil shipments due to price fluctuations
- Global financial crisis impacting credit facilities and commodity demand
- Potential PRC FEIT liability
- Inventory risk with self-storage of petroleum and petrochemical products
Mitigation Strategies
- Prudent and selective trading
- Hedging activities using derivative financial instruments
- Close monitoring of financial position and credit facilities
- Selective pursuit of trading opportunities
- Broadening customer base
- Increasing types of products traded
- Provision for PRC FEIT
- Inventory management strategies and hedging policies