Formosa Plastics Group reported widespread losses in the third quarter as plunging oil prices hampered the recovery of its plasticizing operations. Only the group’s South Asia unit managed to stay profitable, buoyed by its electronic materials division.
Formosa Plastics Corp. posted the largest loss, with an after-tax deficit of NT$3.08 billion (US$96.7 million) and a loss per share of NT$0.32. Nan Ya Plastics and Formosa Chemicals & Fibre also suffered operating losses due to industry slowdowns, reporting losses per share of NT$0.33 and NT$0.49 respectively.
Despite the challenging quarter, Formosa Plastics Corp. maintained its lead in year-to-date profits with NT$4.68 billion (US$146.9 million) in after-tax earnings for the first nine months. Nan Ya Plastics followed with NT$3.04 billion (US$95.5 million) in after-tax profit for the same period.
The group’s performance was further impacted by annual maintenance schedules and weak downstream demand for certain products. Formosa Plastics Corp.’s third-quarter revenue fell 1.2% quarter-on-quarter to NT$50.4 billion (US$1.58 billion), reflecting these operational challenges.
As the industry grapples with persistent headwinds, Formosa Plastics Group faces pressure to adapt its strategies in a volatile market environment.
