Formosa Petrochemical disclosed its financial results for March, revealing a modest monthly revenue increase of 0.91%, reaching NT$57.635 billion, despite a 4.8% decline year-over-year. The first quarter of the year saw revenues amounting to NT$171.196 billion, marking a 7.2% decrease from the previous year. These figures come amid fluctuating oil prices, with Dubai crude oil reaching $84.2 per barrel in March 2024, up by $3.3 from February.
The slight uptick in March revenue, compared to February, is attributed primarily to the olefins business segment, which saw both an increase in sales volume and selling prices. However, the refining business witnessed a downturn due to a narrower price differential between exported oil products and crude oil. This resulted in a marginal $0.6 increase in the average selling price per barrel of products in March, leading to reduced revenue from the refining sector.
Year-over-year comparisons paint a mixed picture, influenced by the global oil market dynamics and currency fluctuations. March 2024’s average price per barrel of Dubai crude oil was up by $5.7 from the same period in the previous year. Although the price gap between exported oil products and crude oil shrank, the depreciation of the Taiwan dollar against the US dollar led to a NT$587 increase in the average sales price per barrel compared to last year. Consequently, the refining business experienced a 3.7% revenue growth compared to March 2023.
However, the olefins business faced a significant 18.5% revenue drop year-over-year, and the public utilities segment saw a stark 38.1% decrease in revenue compared to March 2023. These factors contributed to the overall 4.8% decline in revenue when compared to the same month last year.
Formosa Petrochemical’ latest financial snapshot reflects the challenges and volatilities inherent in the petrochemical industry, impacted by global oil price fluctuations and exchange rate movements. The company’s ability to navigate these complex dynamics will be crucial in shaping its financial trajectory in the coming months.
