Formosa Plastics Corp. will pay a cash dividend despite posting its first annual loss in years, as the Taiwanese petrochemical manufacturer pushes into higher-margin sectors amid industry headwinds.
The company’s board approved a NT$0.5 ($0.016) per share cash dividend despite reporting a loss of NT$0.19 per share for 2023, tapping into its undistributed earnings reserve for the first time.
Formosa Plastics expects improved second-quarter performance as 14 Asian naphtha crackers undergo scheduled maintenance, reducing ethylene supply by 1.31 million tons. This supply constraint coincides with seasonal demand increases from construction, automotive, home appliances, coatings, and food packaging sectors.
The company is repositioning itself amid U.S.-China tensions and shifting global industrial trends. Its strategy focuses on developing new products and businesses in electronics, semiconductors, green energy, and healthcare while increasing sales of differentiated products and leveraging AI to improve operational efficiency.
Formosa has formed joint ventures with Japanese firms SUMCO TECHXIV, Daikin Industries, and Mitsui Chemicals to expand into silicon wafers, electronic-grade hydrofluoric acid, and lithium battery electrolytes. It’s also building a 30,000-ton electronic-grade IPA plant in Kaohsiung with Japan’s Tokuyama to support Taiwan’s advanced semiconductor manufacturing.
