Formosa Petrochemical reports revenue up 19.38%

By Camaron Kao  /  Staff reporter

Fri, Mar 08, 2013 - Page 14

Formosa Petrochemical Corp (台塑石化) saw revenue in the first two months of the year grow 19.38 percent from a year earlier, the highest among all four units of Formosa Petrochemical Group (台塑集團, FPG), because of higher production levels and rising product prices.

Consolidated revenue stood at NT$174.54 billion (US$5.89 billion) in the January-to-February period, up from NT$142.85 billion the previous year, Formosa Petrochemical, the nation’s only listed oil refiner, said in filing to the Taiwan Stock Exchange on Wednesday.

“Production at our factories is at a high level after our oil refinery and ethylene plant resumed production in January,” company spokesman Lin Keh-yen (林克彥) said by telephone yesterday.

Prices of petrochemical products rose last month on limited supply following regular maintenance at factories in the US and Europe, while rising global oil prices also pushed up prices, Lin said.

Formosa Petrochemical said oil prices for this month may not stay high, which could cause its revenue to drop slightly compared with last month, but said the overall outlook for this quarter is very positive compared with last quarter.

The firm said production levels could drop in the second quarter because some of its factories are set to undergo maintenance.

Formosa Chemicals & Fibre Corp (台灣化學纖維), which produces aromatics and styrenics, reported revenue of NT$70.16 billion from January through last month, up 2.78 percent from NT$68.26 billion in the same period of last year, according to its filing.

General manager Hong Fu-yuan (洪福源) said prices of purified terephthalic acid, the company’s major product, began to drop after the Lunar New Year as orders also fell. Hong attributed the fall in orders to customers waiting for prices to drop further.

Formosa Plastics Corp (台塑), the nation’s largest maker of polyvinyl chloride reported revenue of NT$32.69 billion in the first two months of the year, down 0.47 percent from a year earlier.

Formosa Plastics said its production level is higher than last year’s because its factory in Mailiao (麥寮) is now fully functioning, and expects revenues to increase if global oil prices fall.

Nan Ya Plastics Corp (南亞塑膠), the nation’s largest plastics maker, saw its revenue for January through last month drop 0.53 percent year-on-year to NT$50.29 billion, but forecast sales to increase from this month as the company enters its peak season from this month through the second quarter, Nan Ya general manager Wu Chia-chau (吳嘉昭) said yesterday.