Formosa Petrochemical Corp (台塑石化) -- the nation's second-largest oil refiner -- is scheduled to list on the Taiwan Stock Exchange (TAIEX) on Dec. 26 at NT$43 per share, executive vice president Su Chi-yi (蘇啟邑) said yesterday.
The price is imposed based on an average price/earnings ratio of NT$15.8 among Formosa Petrochemical, Formosa Plastic Corp (
According to Su, Formosa Petrochemical has raised its profit target from this year's NT$223 billion to NT$241 billion next year after reaping NT$188 billion in profits, or 85 percent of this year's profit target, as of October.
"As early as the first quarter next year we may revise upward our profit target," Su said, saying that the company has no problem meeting its profit goal this year.
Su also expects crude oil prices to stabilize at an average US$25 to US$28 a barrel next year, since the Iraqi war has ended and the weak US dollar helps prevent oil prices from climbing.
Formosa Petrochemical, which has the capacity to refine 450,000 barrels of crude oil a day at its plant in Mailiao, launched its oil products in 2000, ending Chinese Petroleum Corp's (
The company's market share of retail gas stations around the island stood at 28.25 percent as of October this year, versus Chinese Petroleum's 71.42 percent, and the company expects to increase the figure to around 33 percent next year.
"We hope to increase the number of gas stations from October's 616 to 715 next year," Su said. "The goal is achievable, because we will open 17 new gas stations [in February] along the North-South Freeway."
Formosa has been successful in fanning flames in the oil war against Chinese Petroleum by oftentimes taking the lead in cutting oil prices and launching promotional giveaways to customers.
In addition to such marketing strategies, the to-be-listed company will put more emphasis on its services and oil quality-control to beef up its competitive edge in the near future, Su said.
For example, Formosa joined with Japan's Idemitsu Petrochemical Co to introduce an auto shop at one of its gas stations in Taoyuan County in April, offering express maintanence services to its customers. The extra auto service has helped bring in NT$1 million in monthly revenue to its Hua Ya (
"The auto shop helps retain some of our very loyal customers," said Formosa Life vice president Chan Kuo-ching (
Hua Ya gas station steadily secures a total of NT$17 million in monthly revenues. After a successful test-run, similar express auto services will soon be attached to some of the company's to-be-opened gas stations along the highway, Chan added.
Formosa Petrochemical also has what it calls several "six-star" gas stations in Yuanlin Township in Changhua County, at which it built wooden pavilions at a cost of between NT$3 million and NT$7 million next to the stations, in an effort to attract customers in the highly competitive fuel market.
In addition to its investment in gas stations, the company said it will continue focusing on its oil refining business to fight rumors that the quality of non-Chinese Petroleum oil is poor. Last year, the company launched the nation's first engine-test laboratory at its Mailiao plant.
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