Formosa Chemicals & Fibre (1326) Q1 2024 earnings summary

Executive summary

• Operating revenue for Q1 2024 was NT$83.94 billion, nearly flat year-over-year, with a net profit of NT$1.48 billion, reversing a net loss of NT$1.17 billion in Q1 2023.

• Total comprehensive loss for the period was NT$8.37 billion, mainly due to significant unrealized losses on financial assets measured at fair value through other comprehensive income.

• Earnings per share improved to NT$0.26 from a loss of NT$0.13 in Q1 2023.

Financial highlights

• Operating costs remained high at NT$80.31 billion, resulting in a slim operating margin of 4%.

• Non-operating income contributed NT$1.73 billion, driven by share of profit from associates and joint ventures.

• Cash and cash equivalents at quarter-end were NT$22.75 billion, down from NT$30.14 billion a year earlier.

• Net cash used in operating activities was NT$2.81 billion, compared to NT$5.86 billion used in Q1 2023.

Outlook and guidance

• The company continues to focus on maintaining liquidity and optimizing its capital structure, with a debt-to-capital ratio of 26% as of March 31, 2024.