Formosa Petrochemical forecasts better sales in H2-2013 as demand surges

12-Jun-13

Formosa Petrochemical Corp., Taiwan’s only listed oil refiner, announced that sales in Q3 and Q4 of the year would be higher than the current quarter because of rising global demand, as per Taipeitimes. The company, which generated about 44.42 percent of its revenue last year from overseas sales, said it is aiming to produce more intermediate petrochemical products and look for more business opportunities abroad this year as the global economy continues its gradual recovery. “Stronger demand starting next quarter will increase the company’s profit margin,” Formosa Petrochemical chairman Chen Bao-lang said on the sidelines of a shareholders’ meeting. The company plans to increase its oil production by 15%. However, the prospects for the petrochemical products market remain murky, Chen said, citing uncertain demand from downstream companies. The company has set a production target of 2.8 mln tpa of ethylene this year, an increase of 8.7% from the 2.6 mln tons it made last year, although it expects ethylene prices to remain low due to increasing supplies from the US, the Middle East and China. Formosa Petrochemical also plans to produce 2.2 mln tons of propylene this year, up 7.6% from last year’s 2 mln tons.