Formosa Plastics Reports NT$19.7B Profit Despite Operating Loss

Formosa Plastics Corp. (1301 TW) reported a net income of NT$19.7 billion for the third quarter of 2026, a result significantly bolstered by NT$22.2 billion in non-operating income, even as its core operations experienced a loss.

The Q3 results, released November 13, reveal an operating loss of NT$2.6 billion, stemming from revenue of NT$133.5 billion and an operating expense burden of NT$9.2 billion. This contrasts sharply with the substantial non-operating income, which effectively masked the weakness in the company’s primary business. While the filing does not detail the sources of this non-operating income, its magnitude suggests potential gains from investment activities or asset sales.

The balance sheet shows total assets of NT$859.2 billion, with total liabilities at NT$178.5 billion and total equity at NT$680.7 billion. Book value per share stands at NT$106.93. The substantial equity position provides a buffer against the operating loss, but the reliance on non-operating income to drive profitability raises questions about the sustainability of current earnings.

The divergence between Formosa Plastics’ operating performance and overall net income underscores the influence of factors beyond its core petrochemical operations. The Indian chemical sector, where Formosa Plastics has been expanding, is currently experiencing robust revenue growth, yet companies face margin compression from rising raw material costs. This dynamic may be impacting Formosa Plastics’ operating margins, while investment gains provide a temporary offset. The reliance on non-operating income to achieve a positive bottom line suggests the firm’s core business faces headwinds that are not yet fully mitigated.