Formosa Petrochemical Announces 2026 Q2 Consolidated Financial Results

1. Date of Event: July 9, 2026

2. Company Name: Formosa Petrochemical Corporation

3. Relationship with Company: Parent Company

4. Cross-shareholding Ratio: Not applicable

5. Reason for Announcement: Announcement of the Company's 2026 Q2 Consolidated Financial Results

6. Response Measures: None

7. Other Matters to be Disclosed (If the subject of the event or resolution is a publicly issued company or above, this significant information also qualifies as a matter under Article 7, Paragraph 9 of the Enforcement Rules of the Securities and Exchange Act that significantly affects shareholders' rights or securities prices):

I. Comparison of 2026 Q2 Consolidated Financial Results with Q1 2026:

(1) 2026 Q2 consolidated revenue was NT$182.98 billion, an increase of NT$20.99 billion (13.0%) compared to NT$161.99 billion in Q1 2026. Breakdown:

- Sales volume difference: -NT$34.64 billion - Sales price difference: +NT$55.63 billion

1. Refining Business Revenue increased by 17.4% QoQ.

Volume: Crude oil refining volume in Q2 2026 was 32,673 thousand barrels (359.0 thousand barrels/day), down 6,765 thousand barrels from 39,438 thousand barrels (438.2 thousand barrels/day) in Q1. Product sales volume was 33,639 thousand barrels, down 8,491 thousand barrels QoQ, primarily due to delays in crude oil deliveries caused by the Strait of Hormuz blockade amid escalating U.S.-Iran tensions until mid-June, leading refineries to reduce capacity utilization to 66.5%, down 14.6% QoQ.

Price: Average product price in Q2 2026 was USD 135.3/barrel, up USD 44.6/barrel from the previous quarter, driven by a USD 9.8/barrel increase in Dubai crude average price and a sharp reduction in Middle East refined product exports during the blockade, prompting Asian countries to restrict exports to stabilize domestic supply, thereby significantly widening export price spreads.

2. Olefins Business Revenue decreased by 15.1% QoQ.

Volume: Average capacity utilization in Q2 2026 was 33.1%, down 19.8% QoQ. Product sales volume was 621,000 tons, down 405,000 tons QoQ, mainly due to delayed naphtha deliveries caused by the Strait of Hormuz blockade, coupled with slowing downstream petrochemical demand and cautious customer withdrawals, resulting in only one naphtha cracker operating.

Price: Average product selling price in Q2 2026 was USD 1,187/ton, up USD 367/ton QoQ (ethylene +USD 390, propylene +USD 337, butadiene +USD 457). This was driven by a USD 246/ton increase in MOPJ naphtha average price QoQ and tightening regional supply as Asian crackers successively reduced output or declared force majeure due to feedstock shortages.

3. Utility Business Revenue increased by 16.7% QoQ.

Mainly due to Q2 2026 covering summer electricity billing months and the completion of scheduled maintenance on large power generation units, leading to higher electricity sales volume and price compared to the previous quarter.

(2) 2026 Q2 consolidated pre-tax profit was NT$25.97 billion, up NT$352.82 million from NT$25.62 billion in Q1 2026.

2026 Q2 consolidated after-tax profit was NT$20.78 billion, up NT$368.65 million from NT$20.41 billion in Q1 2026.

After-tax profit attributable to parent company shareholders was NT$20.78 billion, with earnings per share (EPS) of NT$2.18.

Breakdown of consolidated pre-tax profit into 'Operating Profit' and 'Non-operating Profit':

1. Operating Profit: Decreased by NT$1.63 billion.

- Refining: Profit increased QoQ, primarily due to significantly widened export product price spreads from structural supply reductions, offsetting inventory and procurement losses from monthly declining crude prices. - Olefins: Profit increased QoQ, driven by sharp product price increases due to rising naphtha prices and tight regional supply, offsetting inventory and procurement losses from monthly declining naphtha prices. - Utilities: Profit increased QoQ, as higher electricity sales volume and price offset rising fuel coal costs. - In accordance with accounting standards, inventory valuation at the end of the quarter resulted in a NT$3.23 billion inventory valuation loss in Q2 2026, compared to a NT$380 million valuation gain in Q1 2026, resulting in a negative impact of NT$3.61 billion.

2. Non-operating Profit: Increased by NT$1.98 billion.

a. Equity-method gains: +NT$1.50 billion, including +NT$1.10 billion from FPCC DILIGENCE and +NT$310 million from Mailiao Power. b. Dividend income: +NT$120 million, including NT$60 million from Formosa Plastics, NT$30 million from Formosa Chemicals, and NT$20 million from Formosa e-Commerce. No dividend income in Q1 2026.

II. Comparison of 2026 H1 Consolidated Financial Results with H1 2025:

(1) 2026 H1 consolidated revenue was NT$344.97 billion, up NT$26.16 billion (8.2%) from NT$318.81 billion in H1 2025. Breakdown:

- Sales volume difference: -NT$48.63 billion - Sales price difference: +NT$74.79 billion

1. Refining Business Revenue increased by 16.1% YoY.

Volume: Crude oil refining volume in H1 2026 was 72,111 thousand barrels (398.4 thousand barrels/day), down 7,507 thousand barrels from 79,618 thousand barrels (439.9 thousand barrels/day) in H1 2025, primarily due to delayed crude deliveries, resulting in a capacity utilization rate of 73.8%, down 7.7% YoY.

Price: Average product price in H1 2026 was USD 28.5/barrel higher than H1 2025, driven by a USD 19.3/barrel increase in Dubai crude price and significantly strengthened export price spreads.

2. Olefins Business Revenue decreased by 18.5% YoY.

Volume: Average capacity utilization in H1 2026 was 42.9%, down 15.6% YoY; product sales volume was 1.647 million tons, down 703,000 tons YoY, mainly due to delayed naphtha deliveries and weak downstream petrochemical market conditions.

Price: Average product selling price in H1 2026 was USD 958/ton, up USD 167/ton YoY (ethylene +USD 207, propylene +USD 227, butadiene +USD 350, pyrolysis gasoline +USD 186).

3. Utility Business Revenue decreased by 10.9% YoY.

Mainly due to reduced electricity and steam supply to the industrial park compared to H1 2025.

(2) 2026 H1 consolidated pre-tax profit was NT$51.59 billion, a significant improvement from a pre-tax loss of NT$4.76 billion in H1 2025, representing an increase of NT$56.29 billion.

2026 H1 consolidated after-tax profit was NT$41.18 billion, up NT$45.03 billion from an after-tax loss of NT$3.82 billion in H1 2025.

After-tax profit attributable to parent company shareholders was NT$41.19 billion, with EPS of NT$4.32.

Breakdown of consolidated pre-tax profit:

1. Operating Profit: Increased by NT$51.06 billion YoY.

- Refining: Profit increased significantly YoY, benefiting from inventory and procurement gains due to the sharp rise and subsequent fall in crude prices in H1 2026, compared to the steady decline in H1 2025, along with strengthened export price spreads. - Olefins: Profit increased YoY, benefiting from inventory and procurement gains due to the sharp rise and subsequent fall in naphtha prices in H1 2026. - Utilities: Profit decreased YoY, due to lower electricity and steam sales volume and rising fuel coal costs from geopolitical tensions.