The four major subsidiaries of Formosa Plastics Group (FPG, 台塑集團), Taiwan’s largest industrial conglomerate, on Friday posted combined losses of NT$6 billion (US$202.61 million) for the second quarter, down substantially from combined losses of NT$13.99 billion in the first quarter, due to rising market demand as the spread of COVID-19 slowed.
Formosa Chemicals & Fibre Corp (FCFC, 台灣化纖), which manufactures integrated plastic and nylon products, turned profitable last quarter with net income of NT$1.12 billion, or earnings per share of NT$0.19, although revenue decreased 13.1 percent from the previous quarter to NT$55.99 billion, FCFC said in a regulatory filing.
“Because the epidemic slowed in the second quarter and an economic recovery was under way, the amount of acrylonitrile butadiene styrene, polystyrene, purified terephthalic acid and phenol sold increased,” FCFC said.
In the first half of the year, the company posted net losses of NT$3.48 billion, or losses per share of NT$0.6, compared with earnings per share of NT$3.65 a year earlier.
Formosa Petrochemical Corp (FPCC, 台塑石化), the group’s oil refining subsidiary, reported net losses of NT$8.66 billion for last quarter, improving from losses of NT$9.99 billion the previous quarter. It reported losses per share of NT$0.91 for last quarter.
It said that revenue decreased by 41.9 percent quarter-on-quarter to NT$79.93 billion, compared with NT$137.53 billion in the first quarter, as sales for its refining business dropped 48.4 percent and sales for its naphtha cracking business fell 35.8 percent, while revenue for its utility business rose 5.3 percent, its regulatory filing showed.
Overall, FPCC reported net losses of NT$18.65 billion in the first half, compared with net income of NT$17.2 billion a year earlier, or a net loss of NT$1.96 per share. Revenue contracted by 35.1 percent year-on-year to NT$217.46 billion, from NT$335.2 billion.
Nan Ya Plastics Corp (南亞塑膠) was the only one of the group’s four main units to register a profit last quarter, thanks to gains from printed circuit boards, electronic materials and plastic products, as well as investment income from DRAM chipmaker Nanya Technology Corp (南亞科技).
Net income grew 114.8 percent from the previous quarter to NT$2.16 billion, or earnings per share of NT$0.27, despite revenue dropping 7.52 percent to NT$60.62 billion.
In the first six months, Nan Ya’s net income fell 71 percent year-on-year to NT$3.17 billion, or earnings per share of NT$0.4, while revenue dropped 11.6 percent to NT$126.18 billion as the pandemic affected sales of polyester, chemicals and plastic products, as well as investment losses from FPCC.
Formosa Plastics Corp (FPC, 台塑), the group’s flagship firm, remained in the red last quarter due to more investment and foreign exchange losses.
Its net losses widened to NT$631 million, compared with NT$394 million in the first quarter, while revenue expanded 2.3 percent to NT$42.98 billion.
In the first half, the company reported net losses of NT$1.02 billion, or losses of NT$0.16 per share, as revenue decreased 22.4 percent to NT$85 billion.
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