Formosa Chemicals & Fibre : Explanation of FCFC’s Consolidated Operating Revenue in June 2022

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Provided by: FORMOSA CHEMICALS & FIBRE CORPORATION
SEQ_NO	1	Date of announcement	2022/07/11	Time of announcement	13:32:56
Subject	Explanation of FCFC's Consolidated Operating Revenue in June 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 CHEMICALS & FIBRE CORPORATION 3.Relationship to the Company (please enter "head office" or "subsidiaries"):head office 4.Reciprocal shareholding ratios:N/A 5.Cause of occurrence:Explanation of FCFC's Consolidated Operating Revenue in June 2022 6.Countermeasures:none 7.Any other matters that need to be specified: I.Comparison of consolidated operating revenue in June 2022 and in May 2022. 1.Consolidated operating revenue in June increased by 1.58 billion on a monthly basis, with a growth rate of 4.5%. Among the difference, the sales amount increased by 1.14 billion, and the price raise supported the rest 0.44 billion. 2.Aspect of sales volume (1)FCFC：+0.93 billion In response to the PTA overhaul, PX was put more into sales than the PTA production. Along with the raffinate oil, the above jointly contributed an extra 1.43 billion in total. Also, process margin of OX was improved, bringing an increased sales of 0.17 billion. The demand for low-melting point fiber has increased, resulting in an increase of 0.09 billion. In addition, overhaul scheduled for plant PP affected 0.35 billion in total. Low demand for SM and PS led to sales decrease by 0.26 billion. Phenol was affected by 0.15 billion as its downstream plant BPA had undergone its overhaul. (2)FCNB：+0.95 billion Resuming from overhaul, sales volume of PTA increased by 1.28 billion in total. PIA adopted the reconciliation by increasing 0.17 billion. As for PS and phenol, a decrease of 0.41 billion could be ascribed to the weak demand. (3)Other Subsidiaries： Downstream demand for FIPC products weakened, decreasing the sales by 0.29 billion. In FTC, filament fabric orders shift from A/W to S/S, decreasing the sales volume by 0.19 billion. FIC in Vietnam decreased the operating hours of electricity grid and the demand for plastic film and polyester cotton decreased, together affecting 0.15 billion in total. Besides, equipment renewal in FICC resulted in production and marketing decrease by NTD 0.11 billion. 3.Aspect of Selling Price： Driven by the consumption of the Russia-Ukraine war, the EU embargo of Russian oil, and the traditional gasoline peak season in the US, prices of PX, PTA, SM, phenol and acetone increased, whereas the demand for PS, ABS, and PP weakened due to the pandemic lockdown and the new productivity in China. II.Comparison of consolidated operating revenue of June in 2022 and in 2021： 1.Consolidated operating revenue in June 2022 increased by 5.78 billion, with a growth rate of 18.8% on a YOY basis Among the difference, the sales amount decreased by 0.22 billion, while the selling price supported 6 billion instead. 2.Aspect of sales volume (1)FCFC：+0.05 billion In response to the PTA overhaul, the distrubution of PX was adjusted, increasing the ratio of export against internal use and along with raffinate oil resold to FPPC, totally increasing 1.02 billion. Overhaul of plant SM in the previous year accounted for the increased production and marketing volume by 0.75 billion this year. As well, OX price rose, increasing sales in 0.16 billion. Yet, demand for ABS, PTA, PIA, phenol and acetone weakened, decreasing 1.15 billion in total. Overhaul of plant PP decreased production and marketing volume by 0.65 billion. (2)FCNB：+0.04 billion The new production line of the PIA plant was put into operation, increasing the total sales of 0.57 billion. In addition to that, plant ABS resumed from overhaul and equipment renewal this year, increasing the sales volume by 0.26 billion. Plant PTA had resumed from its overhaul this month, thus contributing an extra 0.77 billion in sales on a YOY basis. (3)FIC in Vietnam：-0.23 billion Operating hours of electricity grid decreased, affecting 0.21 billion. Weak demand for nylon chips and cotton yarn resulted in a sales decreased of 0.14 billion. Yet, demand for SPP chips strengthened brought an increase of 0.11 billion . (4)FIPC: -0.16 billion Decrease in sales volume resulted from the weak demand and price-cutting competitors 3.Impact of selling price variance： Oil quotation rose sharply compared with last year due to economic recovery and the Russia-Ukraine war, driving the prices of petrochemical and textile products higher. The price of ABS, PC and acetic acid dropped as the result of the increasing market supply and weak downstream demand compared with the previous year.