Formosa Petrochemical Corp. will dip into its retained earnings for the first time to maintain dividend payments despite a sharp decline in profits, responding to a significant increase in retail investors.
The Taiwanese refiner announced a cash dividend of NT$0.8 (US$0.025) per share on Tuesday, representing a 126% payout ratio on its 2024 earnings per share of NT$0.63. The dividend delivers a yield of approximately 2% based on the closing share price of NT$38.7.
The company’s board approved its 2024 financial results showing revenue dropped 6.8% to NT$663.82 billion (US$20.9 billion), while net income plummeted 72.7% to NT$5.97 billion (US$188 million) – marking its lowest earnings per share in recent years.
According to Taiwan Depository & Clearing Corporation data, Formosa Petrochemical’s shareholder count surged 48.2% to approximately 103,700 by February 21, 2025, compared to 69,900 in March 2024. Small shareholders holding fewer than 1,000 shares increased by 45.5% to 93,100.
The NT$7.62 billion (US$240 million) total dividend payment includes about NT$1.7 billion (US$53 million) drawn from accumulated retained earnings exceeding NT$80 billion (US$2.5 billion). The company indicated it began reviewing its dividend policy last year when operational performance fell short of expectations.
Looking ahead, Formosa Petrochemical acknowledged continuing uncertainty in the global petrochemical industry while expressing optimism about its refining business.
The announcement marks the first of the four major Formosa Plastics Group companies to disclose dividend policies, with Formosa Plastics Corp., Nan Ya Plastics Corp., and Formosa Chemicals & Fibre Corp. expected to follow in March.
