Wed, Aug 07, 2019 - Page 12 News List

FPG units report lower sales for July

MIXED REPORT:FPCC, Nan Ya Plastics, FPC and Formosa Chemicals & Fibre said revenue fell when compared with July last year, yet all but FPC saw it rise over June

By Kwan Shin-han  /  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 take part in an investors’ conference in Taipei yesterday.

Photo: Chang Hui-wen, Taipei Times

Formosa Plastics Group’s (FPG, 台塑集團) four major subsidiaries yesterday reported lower sales for last month as a result of falling prices and declining demand.

Formosa Petrochemical Corp (FPCC, 台塑石化) saw shipments of refined petroleum products increase 1,135 barrels from a year earlier, but its revenue still declined 9.02 percent annually to NT$57.07 billion (US$1.81 billion) although it was up 3.11 percent from June, as crude oil prices remained low, FPCC president Tsao Minh (曹明) told a media briefing in Taipei.

Revenue for this quarter is expected to be better than last quarter on the back of increasing demand for both oil and olefin products ahead of holiday seasons and the steady spreads of oil products, Tsao said.

Nan Ya Plastics Corp’s (南亞塑膠) revenue dropped 13.6 percent year-on-year to NT$24.56 billion, as the prices of two of its main chemical products plunged, with ethylene glycol down 40.5 percent and bisphenol-A down 38 percent, Nan Ya chairman Wu Chia-chau (吳嘉昭) said.

However, revenue increased 11.7 percent over June’s, he said.

“Sales for this month are expected to be slightly higher than last month on the back of higher demand for electronic materials as China speeds up the construction of 5G base stations,” Wu said.

Revenue for this quarter would be flat from last quarter, as most customers remain conservative about their business, he said.

The company’s electronics materials business is expected to benefit from a growing trade spat between Japan and South Korea, despite uncertainties in market demand, he added.

Formosa Plastics Corp (FPC, 台塑), the group’s flagship unit, reported that revenue dropped 10.18 percent annually to NT$17.51 billion, due to falling spreads of its plastic products and sliding prices of its products, FPC president and chairman Jason Lin (林健男) said.

That is 4.59 percent lower than June’s total.

FPC expects revenue for this quarter to be lower than last quarter as its utilization rate would decline 4 percentage points to 89 percent, but product prices would bounce back thanks to annual maintenance at competitors’ manufacturing sites.

Formosa Chemicals & Fibre Corp (FCFC, 台灣化學纖維) saw its revenue fall 19.94 percent to NT$27.46 billion, mainly due to annual maintenance at its plants in Yunlin County’s Mailiao Township (麥寮), but that was 6.53 percent more than June’s figure, FCFC vice chairman Hong Fu-yuan (洪福源) said.

The company expects low demand for polyester products, as its utilization rate for its polyester business remains at 62.63 percent this month, compared with about 80 percent last year, he said.

Revenue for this quarter is expected to be slightly lower than last quarter, as the US’ new tariffs on Chinese imports would lower clients’ demand during the peak season and product prices would remain low, he said.

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