Formosa Plastics’ Four Treasures believes Q4 is better than Q3, Nanya shouts “next year will be better”

Formosa Plastics' four treasures think Q4 is better than Q3, and Nanya says "next year will be better." (File photo)

[Reporter Zhang Huiwen/Taipei Report] Formosa Plastics Sibao delivered good results in the third quarter. As for the outlook for the fourth quarter of this year, Sibao almost all stated that it was "better than the third quarter." Nanya (1303) even stated that "the performance this year is very good, but next year will be even better."

Formosa Plastics pointed out that the fourth quarter is the traditional peak season for demand for PE, EVA, PP and AE, and China continues to introduce economic stimulus measures to boost domestic demand, which will help the real estate, automobile and home appliance industries recover. In addition, the end of the rainy season in India will drive the overall demand for petrochemical products to increase. In addition, the war between the United States and Iran has continued, and the prices of crude oil and raw materials ethylene and propylene have fluctuated at high levels, which has supported recent petrochemical product prices. Coupled with the increase in operating rates and production and sales compared with the third quarter, the revenue in the fourth quarter is expected to increase compared with the third quarter.

Nanya said that its performance in the first three quarters of this year has reached a record high. With the support of the electronic materials business, it is expected that the fourth quarter will be better than the third quarter. This year will be a bright year. Nanya is also confident that next year, the layout of high-end advanced materials will gradually be certified and entered into mass production. The operation of electronic materials products will be significantly improved, pointing out that "the performance this year is very good, but next year will be even better."

Taipei Chemical said that the operating conditions of each product are expected to improve in the fourth quarter compared with the third quarter. However, oil prices are still the biggest variable, but equity method investment income is expected to continue to pour in. The fourth quarter and full-year revenue and profits will be significantly improved compared to last year. As for new businesses, including the construction of electronic-grade hydrogen equipment, investment in computing centers, and the development of 12-inch silicon carbide crystal growth technology, it is expected to add operational momentum in 2027.

Formosa Plastics believes that the fourth quarter has entered the intensive autumn maintenance period of global refineries. As refineries in the Middle East and Russia find it difficult to resume operation, Atlantic diesel fundamentals remain strong. European countries continue to import diesel from Indian and Asian refineries, which will help Asian diesel price differentials maintain a high level. It is expected that the diesel price gap from the fourth quarter to the end of the year will be significantly better than the same period in previous years. period; in addition, the continued impact of the war has led to a decline in gasoline exports in the Middle East and Russia. The excess gasoline from India, Western Europe, and Asia will fill the gap in the Mediterranean and Africa, and the Asian gasoline price difference will be significantly higher than the past winter levels; Formosa Plastics estimates that under the support of the dual interest rate differentials of diesel and gasoline, it will help to maintain strong refining gross profit in the fourth quarter.