Two main units of the Formosa Plastics Group (FPG, 台塑集團), the nation’s largest industrial group, yesterday posted profit growth last quarter from a year ago because they sold shares in Formosa Petrochemical Corp (台塑石化).
Formosa Plastics Corp (台塑), the nation’s largest producer of polyvinyl chloride, reported first-quarter profit of NT$7.21 billion (US$240.35 million), or NT$1.13 per share, after it booked income of NT$2.63 billion from selling 49.35 million shares in Formosa Petrochemical.
The figure was up 28.2 percent from NT$5.63 billion a quarter ago and 31.2 percent higher than NT$5.5 billion a year ago, according to the company’s filing to the Taiwan Stock Exchange.
Nan Ya Plastics Corp (南亞塑膠), the nation’s largest plastics maker, registered profit of NT$9.29 billion last quarter, or NT$1.17 per share, an increase of 45.2 percent from NT$6.4 billion a quarter ago and a rise of 32.2 percent from NT$7.03 billion a year ago after it sold 47.7 million shares of Formosa Petrochemical and generated profit of NT$2.54 billion.
However, Formosa Chemicals & Fibre Corp (台灣化學纖維), which produces aromatics and styrenics, still reported 30 percent profit decline to NT$5.67 billion last quarter, or NT$0.97 per share, from NT$8.1 billion a year ago, despite booking non-operating income of NT$2.6 billion by selling 48.91 million Formosa Petrochemical shares.
“The decline was because many factories of our peers increased production, while downstream firms in China shut down earlier than previous years for the Lunar New Year Holidays and afterward started working later than before,” president Hong Fu-yuan (洪福源) said.
According to Hong, prices of purified terephthalic acid and paraxylene declined by 13.02 percent and 9.2 percent respectively, from the end of last year to the end of last month.
The company’s profit was up 74.9 percent from NT$3.21 billion a quarter ago.
Formosa Petrochemical, the nation’s only listed oil refiner, posted profit of NT$8.76 billion, or NT$0.92 per share, last quarter, up 30.1 percent from NT$6.73 billion the previous quarter and down 8.7 percent from NT$9.89 billion the previous year.
Formosa Plastics was optimistic about this quarter as India decided not to impose an antidumping tariff upon the imports of the company’s polyvinyl chloride (PVC), while it will demand Chinese companies pay US$91 per tonne to US$123 per tonne for the product sold in India, according to company president Jason Lin (林健男).
The company ships 300,000 tonnes of PVC to India a year, accounting for 23.1 percent of the product it made a year, Lin said.
According to Lin, the utilization rate of the company will rise to 90.3 percent this quarter from 87.3 percent last quarter.
Formosa Plastics, Nan Ya Plastics and Formosa Chemicals & Fibre said their revenue would post sequential growth this quarter, while Formosa Petrochemical would post quarter-on-quarter decline this quarter because of annual maintenance.