Thu, Sep 07, 2017 - Page 11 News List

Formosa Plastics revenue jumps due to rising prices

By Kuo Chia-erh  /  Staff reporter

From left, Formosa Plastics Corp chairman Jason Lin, Nan Ya Plastics Corp chairman Wu Chia-chau, Formosa Chemicals & Fibre Corp vice chairman Hong Fu-yuan and Formosa Petrochemical Corp president Tsao Minh hold a news conference in Taipei yesterday.

Photo: Chang Chia-wen, Taipei Times

Formosa Plastics Corp (FPC, 台塑) yesterday reported the largest annual increase in monthly revenue among the Formosa Plastics Group’s (台塑集團) four core units, thanks to rising product prices.

The industrial conglomerate’s flagship company reported that revenue last month totaled NT$18.91 billion (US$628.1 million), an 11.4 percent month-on-month increase and annual growth of 32.9 percent.

FPC chairman and president Jason Lin (林健男) attributed the strong performance to higher prices of the company’s major products, including caustic soda, acrylate and polyvinyl chloride, while prices of ethylene and propylene last month also rose 8 percent and 16 percent respectively from the same period last year.

At a news conference, the firm provided an optimistic outlook for the fourth quarter, as product prices are forecast to hover at relatively high levels compared with the same period last year.

Inventories of polyethylene and ethylene vinyl acetate have remained low in China, which might induce global prices to grow further in the coming months, Lin said.

Hurricane Harvey has had a limited effect on the firm’s Texas plant, despite losses of US$32.5 million because of a 13-day shutdown, Lin said, adding that rising product prices would offset the declining production capacity at the facility.

Formosa Plastics Groups’ three other core units also reported that sales grew last month, as major customers are entering the peak season of their industries.

Nan Ya Plastics Corp (南亞塑膠), the nation’s largest plastics manufacturer, posted monthly revenue of NT$26 billion, a 2.9 percent increase from July and a 12.1 percent increase from the same period last year.

Revenue for this quarter is expected to surpass last quarter due to continuous demand for copper foil and electric material, Nan Ya chairman Wu Chia-chau (吳嘉昭) said.

Formosa Chemicals and Fibre Corp (台灣化學纖維), which produces aromatics and styrenics, reported that revenue rose to NT$29.4 billion, an increase of 0.6 percent from July and 10.7 percent from the same period last year.

Formosa Petrochemical Corp (台塑石化), the nation’s only listed oil refiner, reported that revenue last month totaled NT$53.4 billion, rising 11.5 percent month-on-month and 28.1 percent year-on-year.

The four firms posted a combined revenue of NT$127.7 billion, up 7 percent from July and 20.9 percent from the same period last year.

From January through last month, cumulative sales of the four units totaled NT$968.8 billion, a 12.5 percent annual increase.

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