Formosa Group Performance: Nan Ya and NYPC 'Both Thriving' in 2026; Formosa Q3 Utilization Rate Higher Than Q2

Formosa Plastics (1301-TW) Group announced today (9th) its June 2026 revenue, first-half consolidated profits, and future outlook. As the third quarter enters the traditional peak season for petrochemical products, Formosa stated that with the U.S.-Iran ceasefire and the reopening of the Strait of Hormuz, raw material supply from the Middle East is gradually returning to normal. The company forecasts its Q3 utilization rate at 73%, higher than Q2’s 62%. However, due to falling raw material prices dragging down petrochemical product prices, Q3 performance is expected to be lower than Q2.

Nan Ya expects strong growth momentum in the electronics industry to continue in the second half, making its full-year operational performance highly promising.

Nan Ya noted that electronic materials now account for over half of its total revenue, serving as the primary growth driver. The company has established a complete vertical integration from upstream to downstream, with substantial production capacity capable of meeting market demand for a full range of products including circuit boards, copper-clad laminates, and copper foil. Currently, production lines for all products are operating at nearly full capacity, indicating a positive operational outlook.

Nan Ya reported that its first-half performance has already reached a record high, and the second half remains promising. With continued strong growth expected in the electronics sector, and ongoing contributions from core operations and its investment in subsidiary Nan Ya Plastics (2408-TW), the company is experiencing a 'both thriving' scenario, making 2026 a particularly bright year.

Formosa stated that eight plants are scheduled for maintenance in Q3, two more than in Q2. However, with raw material supply gradually normalizing, Q3 utilization is expected to exceed Q2 levels.

Formosa also noted that crude oil prices have fallen back to pre-U.S.-Iran war levels due to easing conflict, and prices for ethylene and propylene have declined in tandem. This has deepened customer concerns about falling petrochemical prices, leading to more conservative procurement behavior. As a result, Q3 revenue is expected to be lower than Q2. However, Q3 is traditionally the peak season for petrochemical products such as PVC used in Christmas decorations, which will support sales. Additionally, Formosa will benefit from a cash dividend of NT$1.1 billion and a stock swap gain of approximately NT$1 billion from its U.S. subsidiary, which will boost profitability.

Regarding oil price trends, Formosa Chemicals & Fibers (6505-TW) stated that after the U.S. and Iran reached a memorandum agreement, Brent crude futures dropped from a high of around $95 per barrel in early June to $70–75. With Middle Eastern oil producers actively restoring output, and global demand unable to rise quickly in the short term, oversupply is difficult to absorb. Moreover, Iran attacked merchant ships again in the Strait of Hormuz in early July, reigniting geopolitical risks. As a result, oil prices are expected to remain highly volatile.