Formosa Plastics expects profit recovery as stronger petrochemical prices boost margins

Formosa Plastics Group expects to return to profitability this year after reporting a net loss of NT$10.05 billion ($314 million) in 2025, according to local media reports.

Company chairman Kuo Wen-bee said improving petrochemical prices, supported by higher crude oil and naphtha costs, have strengthened both revenue and profit margins across the business.

According to Kuo, the company’s earnings improved significantly during the first quarter as disruptions linked to the Iran conflict pushed global energy and feedstock prices higher. Since petrochemical product prices are closely connected to movements in crude oil and naphtha markets, selling prices also increased during the period.

Formosa Plastics reported a first-quarter net profit of NT$3.29 billion ($105 million), marking a strong recovery compared with the weak performance recorded during the same period last year. Earlier results had been pressured by oversupply conditions and the impact of US tariffs.

The company also expects stronger profitability in the second quarter, as ongoing tensions in the Middle East continue supporting elevated oil and petrochemical prices.

Kuo noted that damage to regional energy infrastructure and petrochemical facilities has significantly disrupted production capacity, while repair and restoration work may take a considerable amount of time before normal operations fully resume.

In addition, the company highlighted growing demand for plastics and petrochemical products from infrastructure development projects in countries such as India and Vietnam, which is expected to further support market conditions.

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