Formosa Plastics Corporation's self-consolidated revenue for 2025 is expected to reach NT$626.148 billion, supported by refining margins, pushing EPS to NT$1.04

Formosa Plastics Corp. (6505) today announced its self-assessed profit and loss for the year 2025. In the fourth quarter of last year, consolidated revenue was NT$ 143.846 billion, a decrease of approximately 12.1% quarter-on-quarter; net profit after tax for the quarter was NT$ 5.177 billion, a decline from the previous quarter, with earnings per share (EPS) of NT$ 0.54. For the entire year of 2025, the self-assessed consolidated revenue was NT$ 626.148 billion, a slight decline of 5.7% compared to 2024, but profitability significantly improved. The annual net profit after tax reached NT$ 9.941 billion, a substantial increase from NT$ 5.810 billion the previous year; the cumulative EPS for the year was NT$ 1.04, successfully returning to the NT$ 1 earnings per share mark, a significant increase from NT$ 0.63 in 2024. From an operational perspective, Formosa Plastics Corp. saw an average refinery capacity utilization rate of 82.8% in 2025, higher than 78% in 2024. In terms of sales, with the completion of scheduled maintenance and resumption of production for the two major heavy oil units, RDS#2 and RFCC, in December, the refinery output reached 14.667 million barrels (approximately 473,000 barrels per day), showing a significant rebound in sales. However, affected by the decline in international oil prices, the average price of all products in December decreased by USD 4.2 per barrel compared to November, indicating that product pricing still faces pressure. Analysis reveals that the significant profit increase for Formosa Plastics Corp. in 2025 was primarily supported by two key factors: "improvement in refining margins" and "reduction in the burden of domestic sales stabilization mechanisms," rather than a comprehensive recovery in overall demand. Firstly, the stability of refining margins is a major factor. In the fourth quarter of last year, despite fluctuations in Dubai crude oil prices, the margins for exported oil products (such as diesel and aviation fuel) remained at reasonable levels. With the gradual exit of old refineries in Europe and the U.S., coupled with increased demand for heating oil in winter, Formosa Plastics Corp. leveraged its economies of scale to achieve a good profit margin between cost control and export profitability. Additionally, the reduction in the amount absorbed by the government's price stabilization mechanism directly alleviated the burden on the core business, allowing for an improvement in operating profit margins. Secondly, the increase in capacity utilization also improved unit costs. Raising the capacity utilization rate to 82.8% means the company is spreading fixed depreciation over a higher operating rate. The utility sector, benefiting from relatively stable coal prices and optimized internal energy scheduling, also contributed to stable cash flow, serving as a good profit buffer. However, the performance of the olefins business was relatively weak, which was the main drag on overall performance. Due to the continuous expansion of petrochemical capacity in mainland China and the slow recovery of global plastic demand, the margins for products such as ethylene and propylene have remained low. The capacity utilization rate of Formosa Plastics Corp.'s olefins plant was only maintained at a low level of 55% to 60%, effectively adopting a conservative strategy of production cuts to maintain prices, avoiding a situation where producing more leads to greater losses. In addition to operational aspects, fluctuations in exchange rates also had a significant impact. The appreciation of the New Taiwan Dollar resulted in Formosa Plastics Corp. recognizing an exchange loss of approximately NT$ 1.16 billion last year; in contrast, the previous year had an exchange gain of about NT$ 600 million. The difference in the impact on profit and loss amounts to approximately NT$ 1.76 billion Overall, Formosa Plastics Group in 2025 will clearly show a strong refining and weak petrochemical pattern. The company, leveraging its integrated refining advantages, can maintain profitability even during a downturn in the petrochemical market. The next focus of the market will be on the production increase dynamics of Middle Eastern oil-producing countries, whether global economic recovery can drive oil product demand, and whether China's "anti-involution" policy will slow down its expansion pace