The four major subsidiaries of Formosa Plastics Group (FPG, 台塑集團), Taiwan’s largest industrial conglomerate, on Friday posted combined profits of NT$42.82 billion (US$1.5 billion) for the fourth quarter of last year, down 14 percent from a quarter earlier.
The decline was led by Formosa Petrochemical Corp (台塑石化), the group’s oil refining subsidiary, which reported net profit of NT$10.29 billion, down 34 percent from NT$15.81 billion in the previous quarter. Earnings per share (EPS) were NT$1.08.
However, revenue increased 10.6 percent quarter-on-quarter to NT$103.86 billion, as a 49 percent gain in sales in its naphtha cracking business offset a 1.5 percent decrease in sales in its refining business and an 18.5 percent drop in revenue in its utility business.
Photo: Chang Hui-wen, Taipei Times
Formosa Chemicals & Fibre Corp (FCFC, 台灣化纖), which makes integrated plastic and nylon products, posted NT$9.7 billion in net profit, a decline of 26 percent quarter-on-quarter, due to lower investment gains, its regulatory filing showed.
Net profits at Formosa Plastics Corp (FPC, 台塑), the group’s flagship firm, rose 2.8 percent quarterly to NT$10.6 billion, as prices of its main products rose by 7 to 44 percent quarter-on-quarter amid rising demand in Asia, disrupted production in US petrochemical plants due to Hurricane Laura and falling supply due to an incident at LG Chem Ltd’s naphtha cracker in South Korea.
Having fewer plants closed last quarter for regular maintenance also contributed to profit growth, it said.
The company’s EPS reached NT$1.67 last quarter, it added.
Nan Ya Plastics Corp’s (南亞塑膠) profit continued to increase to NT$12.17 billion last quarter, with operating income reaching a record-high NT$10.5 billion, thanks to higher demand for electronic materials.
The company’s portfolio includes printed circuit boards, electronic materials and plastic products, as well as a stake in DRAM maker Nanya Technology Corp (南亞科技).
Nan Ya Plastics said that sales of electronic materials increased 14.26 percent last quarter, thanks to growing demand for high-end products, wireless communication and Internet devices, adding that sales of polyester products increased 9.09 percent following price hikes in crude oil and raw materials.
Revenue from plastics products also increased 11 percent as market demand recovered, with sales of chemical products expanding 35 percent, company data showed.
Overall, the subsidiaries reported a 42.7 percent year-on-year decline to NT$72.69 billion in combined profit for last year, as the COVID-19 pandemic affected market demand, while declining crude oil prices undercut product prices.
FCFC, FPC and Nan Ya Plastics posted EPS of NT$3.14, NT$3.34 and NT$3.24 respectively, compared with Formosa Petrochemical’s NT$0.79, their regulatory filings showed.
Due to the declining profit, FPG announced that it would issue year-end bonuses equivalent to 3.66 months of salary ahead of the Lunar New Year holiday that starts on Feb. 11, down from bonuses equivalent to 4.94 months of salary it distributed in 2019.
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