Formosa Plastics Corp (FPC, 台塑) and Formosa Petrochemical Corp (台塑石化) yesterday reported month-on-month revenue increases last month as their factories completed annual maintenance and market sentiment improved.
Formosa Plastics Corp, the nation’s largest producer of polyvinyl chloride, saw its revenue rise 5.4 percent to NT$18.51 billion (US$625.91 million) last month from NT$17.56 billion a month ago, according to a filing to the Taiwan Stock Exchange. The figure was up 7.3 percent from NT$17.26 billion a year ago, the filing showed.
Formosa Plastics president Jason Lin (林健男) said at a press conference that sales of polyvinyl chloride increased last month after two of the company’s factories that process the raw materials resumed production.
Demand for ethylene vinyl acetate from the Chinese shoemaking industry also rose last month compared with a month ago as the shoemaking industry entered its peak season, Lin said, adding that the company started producing low-density polyethylene last month, eyeing its rising prices.
As for year-on-year revenue growth, Lin said that this year demand from the Chinese shoemaking industry was stronger and prices for polyethylene-related products were higher.
He said the company is likely to report sequential revenue increase this month as the global supply for polyvinyl chloride declines and prices for ethylene vinyl acetate and polyethylene-related products continue to rise.
The affiliated Formosa Petrochemical Corp (台塑石化), which is the nation’s only listed oil refiner, also reported revenue increase of 5.1 percent to NT$80.79 billion last month from NT$76.86 billion the previous month, according to a separate stock exchange filing.
“One of the company’s naphtha crackers resumed production last month, pushing the production of ethylene to 263,000 tonnes from 177,000 tonnes a month ago,” Formosa Petrochemical president Tsao Mihn (曹明) said.
However, last month’s revenue was 2.8 percent lower than the NT$83.12 billion the company posted a year ago, which Tsao attributed to the 7.3 percent annual decline in oil production last month to 478,000 barrels a day and the 0.6 percent annual fall in oil price.
The company remains optimistic about its near-term outlook as demand for its oil and petrochemical products remains strong and product prices stay high, Tsao said.
Two other Formosa affiliates also released their sales figures yesterday, with Nan Ya Plastics Corp (南亞塑膠), the nation’s largest plastics maker, seeing revenue fall 0.5 percent month-on-month to NT$26.4 billion last month, while Formosa Chemicals & Fibre Corp (台灣化學纖維), which produces aromatics and styrenics, posted revenue of NT$37.35 billion last month, down 0.2 percent from October.