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Statement
| 1.Date of occurrence of the event:2022/06/08
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 consolidated results
in May 2022
6.Countermeasures:None
7.Any other matters that need to be specified:
1. Compared consolidated sales in May and April 2022:
The consolidated sales of NTD 24.84bn in May 2022 decreased by
NTD 0.29bn and was down by 1.2% from April 2022. The reasons were as
follows:
(1). The sales spread of volume decreased by NTD 0.99bn.
The total sales volume of caustic soda, EDC and AE of the Company in
May 2022 decreased by 54,000 MT from April 2022, given (1) the part of
caustic soda and EDC orders delivery was postponed to June to match the
customers'shipping arrangement, and (2) the turnaround of Mailiao AE
plant made the sale and production volume decrease.
(2). The sales spread of price increased by NTD 0.69bn.
The price of caustic soda, EVA and SAP of the Company in May 2022 was
up by 5~12% from April 2022, given (1) the sharply increased energy price
in Europe pushed up the cost of the local chlor-alkali producers and made
them decrease the production, (2) demand of EVA solar cell encapsulation
film increased continuously, and (3) the price of SAP was pushed up because
the turnaround of the part of AA plants of Asia producers made supply
decrease, and the price of caustic soda increased continuously.
2. Compared consolidated sales in May 2022 and May 2021:
The consolidated sales of NTD 24.84bn in May 2022, which reached the
historical high amount during the same period, increased by NTD 0.49bn
and was up by 2% from May 2021. The reasons were as follows:
(1). The sales spread of price increased by NTD 2.78bn.
The price of each main product of the Company in May 2022 was up by
14~126% from May 2021, because the contract price of ethylene and
propylene was up by 21% and 11% respectively from May 2021, due to the
increased price of energy and commodity affected by the growth of global
economic and the war between Russia and Ukraine.
(2). The sales spread of volume decreased by NTD 2.28bn.
The sales volume of PE and PP of the Company in May 2022 decreased by
51,000 MT from May 2021, and the sales decreased by NTD 2.01bn, given
(1) Linyuan PP plant was in turnaround in May 2022, (2) the Company
lowered down the operation rate as well as the sale and production volume
of PE and PP, because the high cost of crude oil, ethylene and propylene
and the decreased demand due to the lockdown in China made the variable
cost of PE and PP overwhelm their prices.
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