Formosa Plastics: August Revenue Up 6.8% YoY

Formosa Plastics Corp. reported consolidated revenue of NT$13.99 billion for August 2026, up 6.8% year-over-year. The increase followed a 8.5% month-over-month decrease in revenue. The company attributed the year-over-year gain to a NT$3.4 billion increase in sales price differentials stemming from the US-Iran war and resulting spikes in oil, light oil, ethylene, and propylene prices. These higher input costs were partially offset by a NT$2.51 billion decrease in sales volume.

Specifically, the company noted a 6.3-thousand-ton decrease in total sales volume compared to July 2026, due to planned maintenance at the Mailiao plant and the consolidation of its U.S. subsidiary. Compared to August 2025, sales volumes decreased by 9.7-thousand tons, reflecting conservative purchasing by downstream customers and weakening demand in China’s real estate and automotive sectors. The revenue increase occurred despite these declines, driven by average price increases of 27% to 58% across major products year-over-year.

The reported revenue growth reflects the impact of volatile petrochemical feedstock prices and fluctuating demand. The combination of price increases and volume declines highlights a compression in petrochemical spreads, a trend that could challenge future earnings if feedstock prices remain elevated and demand does not recover.