Formosa Chemicals & Fibre (1326) Q2 2024 earnings summary

Executive summary

• Operating revenue for the six months ended June 30, 2024 was NT$180.4 billion, up 14% year-over-year, with net income of NT$3.47 billion, a significant increase from NT$524 million in the prior year period.

• Gross margin improved to 5% from 1% year-over-year, reflecting better cost control and higher sales volumes.

• Comprehensive income was negatively impacted by a NT$19.1 billion loss on financial assets at fair value through other comprehensive income.

Financial highlights

• Operating profit for the six months was NT$1.4 billion, compared to a loss of NT$5.5 billion in the prior year period.

• Earnings per share for the six months were NT$0.58, up from NT$0.09 year-over-year.

• Cash and cash equivalents at June 30, 2024 were NT$17.3 billion, down from NT$24.0 billion at June 30, 2023.

• Total assets stood at NT$568.2 billion, with equity attributable to owners at NT$325.9 billion.

Outlook and guidance

• Management expects continued improvement in profitability, supported by stable demand in core petrochemical and fiber markets.

• No significant changes in capital management strategy; focus remains on maintaining a healthy debt-to-capital ratio and liquidity.