Formosa Petrochemical, FCFC post unexpected Q2-2012 losses
Units of Formosa Group-Formosa Petrochemical Corp. and Formosa Chemicals & Fibre Corp. have both posted unexpected Q2-2012 losses after a drop in oil and chemical prices drove down their inventory values, as per Bloomberg. A decline in oil prices cut the value of stockpiles held by Formosa Petrochemical, which imports all its crude needs. Crude oil in New York dropped 18% between April and June on concern demand would be hurt by the global economic slowdown and Europe?s debt crisis.
Formosa Petrochemical reported a pretax loss of NT$15.6 bln (US$523 mln) for the three months ended June 30. Formosa Chemicals posted a pretax loss of NT$6.14 bln.
Plastics processor Nan Ya Plastics Corp. reported a loss of NT$2.72 bln. Polyvinyl chloride maker Formosa Plastics Corp. posted a pretax profit of NT$270 mln in the second quarter. Formosa Petrochemical halted its No. 2 and No. 3 naphtha crackers on June 20 because of a power failure. The incident affected 42 of the group?s 66 plants at Mailiao.