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Provided by: Formosa Plastics Corporation | |||||
SEQ_NO | 2 | Date of announcement | 2022/07/11 | Time of announcement | 13:37:47 |
Subject | Announcement of FPC unaudited consolidated results in Q2 2022 | ||||
Date of events | 2022/07/11 | To which item it meets | paragraph 51 | ||
Statement | 1.Date of occurrence of the event:2022/07/11 2.Company name:Formosa Plastics Corporation 3.Relationship to the Company (please enter "head office" or "subsidiaries"):head office 4.Reciprocal shareholding ratios:N/A 5.Cause of occurrence: Announcement of FPC unaudited consolidated results in Q2 2022 6.Countermeasures:None 7.Any other matters that need to be specified: 1. Compared unaudited consolidated sales in Q2 and Q1 2022: (1). The consolidated sales of NTD 73.9bn in Q2 2022 increased by NTD 2.9bn and was up 4.1% from Q1 2022. The reasons were as follows: A. The sales spread of price increased by NTD 6.45bn. The price of each product of the Company in Q2 2022 was up 3~32% from Q1 2022, given (1) the sharply increased crude oil price impacted by the war between Russia and Ukraine, and (2) the traditional peak demand season in Q2 pushed up the price of petrochemical products. B. The sales spread of volume decreased by NTD 3.53bn. The total sales volume of EVA, PE and PP of the Company in Q2 2022 decreased by 86,000 MT from Q1 2022, given (1) the Company lowered down PE and PP operation rate, because the increased price of ethylene and propylene overwhelmed against the which of products, (2) Linyuan PP plant in turnaround made the sales and production volume decline, and (3) the off-season demand of China EVA shoes industry. (2). The operating income of NTD 15.2bn in Q2 2022 increased by NTD 1.9bn and was up 14.8% from Q1 2022. The consolidated pre-tax income of NTD 25.3bn in Q2 2022 increased by NTD 5.5bn and was up 28.3% from Q1 2022 and the pre-tax EPS was NTD 3.97. The consolidated income after tax of NTD 2.12bn in Q2 2022 increased by NTD 4.6bn and was up 27.9% from Q1 2022 and the after-tax EPS was NTD 3.33. The reasons were as follows: A. The operating income in Q2 2022 increased from Q1 2022, given (1) the caustic soda producers in Europe cut production because of the high energy cost affected by the war between Russia and Ukraine, and (2) the strong demand on the EVA solar cell encapsulation film, made the price increase and enlarge the spread. B. Investment income of NTD 6.6bn in Q2 2022 increased by NTD 1.1bn from Q1 2022, given: a. Investment income from Formosa Petrochemical Corporation was NTD 4.8bn increased by NTD 0.89bn. b. Investment income from Formosa Plastics Corporation, U.S.A. was NTD 2.67bn increased by NTD 0.9bn, given (1) the reduced productions from peers because of the delivery difficulty made the market supply decrease, and (2) the increased demand pushed up each product price. c. Investment income from Mailiao Power Corporation was NTD -0.74bn decreased by NTD 0.44bn. C. Cash dividends were NTD 2.2bn in Q2 2022. D. The FX gain of NTD 0.88bn in Q2 2022 increased by NTD 0.01bn from NTD 0.87bn in Q1 2022. 2. Compared unaudited consolidated sales in H1 2022 and 2021: (1). The consolidated sales of NTD 144.9bn in H1 2022, which reached the historical high amount during the same period, increased by NTD 12.6bn and was up 9.6% from H1 2021. The reasons were as follows A. The sales spread of price increased by NTD 18.3bn. The price of each product of the Company in H1 2022 was up 8~125% from H1 2021, because the war between Russia and Ukraine affected the average prices of Dubai crude oil, ethylene and propylene to increase 60.6%, 24.7% and 16% in H1 2022, respectively, which pushed up the petrochemical product price. B. The sales spread of volume decreased by NTD 5.7bn. The total sales volume of HDPE and PP of the Company decreased by 177,000 MT from H1 2021, given (1) the Company lowered down the operation rate because the high cost of ethylene and propylene made the variable cost of HDPE and PP overwhelm their prices, and (2) Linyuan PP plant in turnaround made the sales and production volume decline. (2). The operating income of NTD 28.6bn in H1 2022 decreased by NTD 2.6bn and was down 8.5% from H1 2021. The consolidated pre-tax income of NTD 45bn in H1 2022 increased by NTD 2.3bn and was up 5.6% from H1 2021. The pre-tax EPS was NTD 7.07. The consolidated after-tax income of NTD 37.7bn in H1 2022 increased by NTD 2.5bn and was up 7.3%. The after-tax EPS was NTD 5.93. The reasons were as follows: A. The operating income in H1 2022 decreased 8.5% from H1 2021, given (1) the war between Russia and Ukraine pushed up the crude oil price, but the demand in China was week, and (2) the increased price of ethylene and propylene overwhelmed against the which of products, and narrowed down the spread. B. Investment income was NTD 12bn in H1 2022 increased by NTD 0.1bn from H1 2021, given: a. Investment income from Formosa Petrochemical Corporation decreased by NTD 0.1bn. b. Investment income from Formosa Plastics Corporation, U.S.A. increased by NTD 2.8bn, because the increased prices of each main product enlarged the spread. c. Investment income from Formosa Olefins, L.L.C. decreased by NTD 0.8bn. d. Investment income from Mailiao Power Corporation decreased by NTD 1.1bn. C. Cash dividends were NTD 2.2bn in H1 2022. D. The FX gain of NTD 1.75bn in H1 2022 increased by NTD 2.29bn from the FX loss of NTD 0.54bn in H1 2021. |
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Formosa Plastics Corporation published this content on 11 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 July 2022 05:53:07 UTC.