Formosa Plastics Group (FPG, 台塑集團), the nation’s largest industrial conglomerate, yesterday reported that combined sales at its four main subsidiaries last month increased 4.1 percent annually to NT$119.52 billion (US$3.97 billion), primarily due to rising customer demand.
The figure also translated into an 8 percent increase from NT$110.7 billion in April, filings with the Taiwan Stock Exchange showed.
Among the four units, Formosa Petrochemical Corp (台塑石化), the nation’s only listed oil refiner, led the increase with revenue of NT$50.39 billion last month, a 1.9 percent increase from a year earlier and a 19.2 percent increase from a month earlier.
“The performance was supported by higher production volume and rising oil prices last month,” Formosa Petrochemical president Tsao Minh (曹明) said at an earnings conference in Taipei.
Formosa Plastics Corp (台塑公司), the nation’s largest producer of polyvinyl chloride (PVC), reported sales of NT$17.87 billion, an increase of 20 percent year-on-year and 8 percent month-on-month.
Revenue at Nan Ya Plastics Corp (南亞塑膠), the nation’s largest plastics maker, grew 5.5 percent annually and 1.4 percent month-on-month to NT$24.61 billion, company data showed.
Formosa Chemicals & Fibre Corp (台灣化學纖維), which produces aromatics and styrenics, was the only company to report a monthly decline in revenue.
Formosa Chemicals & Fibre Corp reported revenue of NT$26.66 billion for last month, a decrease of 1.7 percent from the same period last year and 3.5 percent from the previous month.
The company attributed the sluggish performance to lower production capacity due to regular maintenance, as well as falling prices of its major products.
The four subsidiaries gave generally positive business outlooks for the rest of the year in light of sustained demand for petrochemical products worldwide, despite recent fluctuations in international crude oil prices.
“Better-than-expected demand for PVC in India is likely to boost the company’s sales further,” Formosa Plastics president Jason Lin (林健男) told reporters.
Nan Ya Plastics chairman Wu Chia-chau (吳嘉昭) said the company expects sales to grow next quarter amid rising demand for electric material, as its major customers are entering the peak season of the industry.
Commenting on a dramatic breakdown between Qatar and Arab states, Tsao said that oil price swings might be a short-term phenomenon.
Crude oil prices are expected to reach about US$55 per barrel this year, based on actual supply and demand in the global petrochemical industry, he added.
The group’s revenue totaled NT$604.44 billion in the first five months of this year, up 13.7 percent year-on-year, company data showed.
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