The four major subsidiaries of Formosa Plastics Group (FPG, 台塑集團), the nation’s largest industrial conglomerate, yesterday posted combined losses of NT$13.99 billion (US$464.74 million) for last quarter, marking the group’s worst financial performance in five years.
Formosa Petrochemical Corp (台塑石化), the largest of the group’s four listed companies, reported a loss of NT$9.99 billion for last quarter, or losses per share of NT$1.05.
The company blamed plummeting crude oil prices and weakening demand amid the COVID-19 pandemic, as prices of its naphtha and alkene products fell, dealing a heavy blow to its oil refining business.
An inventory loss of NT$5.26 billion also added to last quarter’s poor performance.
Formosa Petrochemical posted revenue of NT$137.53 billion for last quarter, an 8.8 percent decline from NT$150.77 billion in the fourth quarter of last year.
Nan Ya Plastics Corp (南亞塑膠), the nation’s biggest plastics maker, was the only one of the group’s four main units to register a profit last quarter, despite also suffering a downturn in business due to the pandemic.
The company posted a net profit of NT$1.01 billion for last quarter, or earnings per share of NT$0.13, a 75.82 percent decline quarter-on-quarter.
Revenue last quarter contracted 8.5 percent to NT$65.56 billion as the company registered poor sales during and after the Lunar New Year holiday as the coronavirus outbreak started to accelerate.
However, the performance of the company’s electronic components business improved, with the circuit board business turning a profit thanks to growing demand from the deployment of 5G technologies.
Aromatics and styrenics manufacturer Formosa Chemicals and Fibre Corp (台灣化學纖維) posted the group’s second-heaviest loss of NT$4.61 billion, or losses per share of NT$0.79.
Revenue fell 9.8 percent quarter-on-quarter to NT$64.44 billion last quarter.
Formosa Plastics Corp (台灣塑膠) posted a loss of NT$394 million, or losses per share of NT$0.06, while its revenue contracted 13.5 percent quarter-on-quarter to NT$42.02 billion.
The company also blamed the COVID-19 pandemic, which had dragged down demand and prices.
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