Overall GIF profit drops 10% in third quarter
By Kao Shih-ching / Journalist
The four main subsidiaries of Formosa Plastics Group (FPG, 台塑 集團), Taiwan’s largest industrial conglomerate, posted a combined profit of NT $ 62.26 billion (US $ 2.22 billion) on Friday for the third quarter, down 10.1% from the previous quarter due to annual maintenance and a decrease in product variances – the difference between raw material costs and product prices.
However, profits for the quarter were up 24.99% year-over-year due to higher oil prices, increased market demand – as many economies began to recover from the fallout. COVID-19 – and investment gains.
Nan Ya Plastics Corp (南亞 塑膠), the only FPG unit to report a quarterly increase in third-quarter net income, posted a profit of NT $ 23.14 billion – the second highest in its history – in up 0.43% from the previous quarter and a jump of 123% from a year earlier, according to a company regulatory filing.
Earnings per share in the last quarter was NT $ 0.4, he said.
Nan Ya Plastics, whose portfolio includes printed circuit boards, electronic materials, and plastic products, attributed the growth to strong demand for electronic materials used in the development of new energy vehicles, 5G applications, artificial intelligence and high-performance computing technology, he said.
Electronic materials revenue increased 6.8% to NT $ 49.3 billion and accounted for 45% of the company’s third-quarter sales, while chemical materials revenue increased 10.3% to 32 billion NT dollars and accounted for 29% of quarterly sales, he said.
Nan Ya Plastic said its quarterly revenue grew 5.7% to NT $ 109.93 billion from the previous quarter – a record for the company – with revenue up 4.5% from operations in Taiwan, 6.4% in China and 10.6% in the United States.
Formosa Plastics Corp (FPC, 台塑), the group’s flagship company, said its revenue fell 6.6% to NT $ 66.9 billion from the previous quarter, the price of its products in polyvinyl chloride having fallen 14% due to declining demand in Asia amid the COVID-19 pandemic, according to a company regulatory filing.
In the last quarter, 11 of its factories were also closed for maintenance, against seven factories in the second quarter, he said.
FPC reported that net profit fell 4.5% to NT $ 19.32 billion, despite NT $ 6.8 billion in investment income, NT $ 3 billion in cash dividend income and 100 million NT dollars in foreign exchange income.
Earnings per share in the last quarter was NT $ 3.03, he said.
Formosa Petrochemical Corp (FPCC, 台塑 石化), the group’s petroleum refining subsidiary, said revenue rose 13.1 percent to NT $ 164 billion from the previous quarter as a price increase Dubai’s crude oil has pushed up the average price of the company’s product through the United States. $ 4.1 per barrel.
Revenues from its utility operations rose 12.6% due to rising electricity prices over the summer, the company said.
However, the company said its net profit fell 24.4% to NT $ 10.29 billion as its refining business had lower inventory gains, its naphtha cracker was affected by lower spreads. of products and higher coal prices impacted the bottom line of its utilities business.
Earnings per share in the last quarter was NT $ 1.08, Formosa Petrochemical said.
Formosa Chemicals & Fiber Corp (FCFC,), which manufactures integrated plastic and nylon products, reported that its net profit fell 23.2% to NT $ 9.52 billion from the previous quarter, due of lower income, while earnings per share were NT $ 1.63.
In the first three quarters, the four subsidiaries recorded a combined net profit of NT $ 194.93 billion, an increase of 553.3% over the same period last year, led by 63.83 billion NT $ from Nan Ya Plastics and NT $ 54.51 billion from FPC.
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