Formosa Chemicals & Fibre Corp (台灣化纖) yesterday said its after-tax profit in the first six months of the year expanded nearly 26 percent from a year ago, despite a negative outlook for the second half because of the shutdown of Formosa Plastics Group (FPG, 台塑集團) plants at the Mailiao (麥寮) petrochemical complex in Yunlin County.
Formosa Chemicals, one of FPG’s four largest units, said in a stock exchange filing that it made a profit of NT$28.16 billion (US$970.3 million), or NT$4.96 in earnings per share (EPS), in the first half.
The company made a net profit of NT$22.44 billion, or EPS of NT$3.95, during the same period last year, company data showed.
Formosa Chemicals produces aromatics and styrenics to be used in the manufacturing of nylon, housewares, construction materials, food packaging and electronic parts.
The company is likely to see reduced factory utilization in the second half as it will face difficulty in buying a large volume of heavy naphtha from Formosa Petrochemical Corp (台塑石化) following the recent shutdowns of all refining units in the Mailiao complex because of a number of fires over the past year.
Last week, the Ministry of Economic Affairs asked Formosa Chemicals and Formosa Petrochemical Corp (台塑) to suspend usage of four more pressure tanks in Mailiao by early next month for safety inspections because they are prone to explosion.