Formosa Petrochemical Announces 2026 Q2 Consolidated Earnings

Release Date: July 10, 2026 Statement Date: July 9, 2026 Statement Time: 14:30:55 Company Code: 6505 Company Name: Formosa Petrochemical Corporation Subject: Announcement of 2026 Q2 Consolidated Earnings Applicable Clause: Item 51 Event Date: July 9, 2026

Details: 1. Event Date: July 9, 2026 2. Company Name: Formosa Petrochemical Corporation 3. Relationship to Company: Parent Company 4. Cross-shareholding Ratio: Not applicable 5. Reason: Announcement of 2026 Q2 consolidated earnings 6. Response Measures: None 7. Other Matters to Note (This significant information also meets Article 7, Paragraph 9 of the Enforcement Rules of the Securities and Exchange Act, as the subject is a publicly issued company and has material impact on shareholders' equity or securities prices):

I. Comparison of 2026 Q2 Consolidated Earnings with Q1 2026:

(1) 2026 Q2 consolidated revenue reached NT$182.983 billion, an increase of NT$20.993 billion (13.0%) compared to NT$161.989 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 bpd), down 6,765 thousand barrels from 39,438 thousand barrels (438.2 thousand bpd) in Q1. Product sales volume was 33,639 thousand barrels, down 8,491 thousand barrels QoQ, primarily due to heightened U.S.-Iran tensions leading to the closure of the Strait of Hormuz until mid-June, causing crude delivery delays and forcing refineries to reduce Q2 capacity utilization to 66.5% (14.6% lower than Q1). Price: Average product price in Q2 2026 was USD 135.3/barrel, up USD 44.6 from the previous quarter, driven by Dubai crude averaging USD 9.8/barrel higher and sharply reduced Middle East refined product exports during the Strait closure, prompting Asian countries to restrict exports to stabilize domestic supply, 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% from Q1. Product sales volume was 621,000 tons, down 405,000 tons QoQ, mainly due to naphtha delivery delays from the Strait closure and weaker downstream petrochemical demand with cautious customer withdrawals, resulting in only one light cracker unit operating. Price: Average product selling price in Q2 2026 was USD 1,187/ton, up USD 367/ton from the previous quarter (ethylene +USD 390, propylene +USD 337, butadiene +USD 457). This was primarily due to MOPJ naphtha prices rising USD 246/ton QoQ, and multiple Asian crackers reducing output or declaring force majeure due to feedstock shortages, tightening regional supply and pushing up prices.

3. Utility Business Revenue increased by 16.7% QoQ. Mainly due to Q2 2026 including summer electricity billing months and the completion of scheduled maintenance on major power units, leading to higher electricity sales volume and prices compared to the previous quarter.

(2) 2026 Q2 consolidated pre-tax profit was NT$25.969 billion, up NT$352.82 million from NT$25.616 billion in Q1. Consolidated after-tax profit was NT$20.775 billion, up NT$368.65 million from NT$20.407 billion in Q1. After-tax profit attributable to parent was NT$20.778 billion, with EPS of NT$2.18.

Breakdown of consolidated pre-tax profit:

1. Operating Profit: Decreased by NT$1.63 billion QoQ. - Refining: Profit increased QoQ, driven by significantly widened export price spreads due to structural supply reductions, offsetting inventory and procurement losses from falling crude prices. - Olefins: Profit increased QoQ, as sharp price increases from rising naphtha costs and tight regional supply offset procurement and inventory losses from falling naphtha prices. - Utilities: Profit increased QoQ, as higher electricity sales volume and prices offset rising coal fuel costs. - Inventory valuation: In accordance with accounting standards, inventory was revalued at quarter-end, resulting in a NT$3.23 billion loss in Q2 2026, compared to a NT$380 million gain in Q1, a negative impact of NT$3.61 billion.

2. Non-operating Profit: Increased by NT$1.98 billion QoQ, mainly due to: 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 Q2 2026 dividends: NT$60 million from Formosa Plastics, NT$30 million from Formosa Chemicals, NT$20 million from Formosa Teco. No dividend income in Q1 2026.

II. Comparison of 2026 H1 Consolidated Earnings with H1 2025:

(1) 2026 H1 consolidated revenue was NT$344.972 billion, up NT$26.158 billion (8.2%) from NT$318.815 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 refining volume in H1 2026 was 72,111 thousand barrels (398.4 thousand bpd), down 7,507 thousand barrels from 79,618 thousand barrels (439.9 thousand bpd) in H1 2025; product sales volume was 75,769 thousand barrels, down 8,956 thousand barrels YoY, mainly due to delivery delays reducing H1 capacity utilization to 73.8%, down 7.7% YoY. Price: H1 2026 average product price was USD 28.5/barrel higher than H1 2025, driven by Dubai crude prices rising USD 19.3/barrel YoY and significantly stronger 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 naphtha delivery delays and weak downstream market conditions leading to capacity adjustments. Price: H1 2026 average product selling price was USD 958/ton, up USD 167/ton YoY (ethylene +USD 207, propylene +USD 227, butadiene +USD 350, pygas +USD 186).

3. Utility Business Revenue decreased by 10.9% YoY. Mainly due to reduced electricity and steam supply to厂区 compared to H1 2025.

(2) 2026 H1 consolidated pre-tax profit was NT$51.585 billion, a significant improvement from a pre-tax loss of NT$4.761 billion in H1 2025, representing an increase of NT$56.291 billion. Consolidated after-tax profit was NT$41.182 billion, up NT$45.030 billion from an after-tax loss of NT$3.821 billion in H1 2025. After-tax profit attributable to parent was NT$41.186 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 surged YoY, benefiting from the sharp rise and subsequent fall in crude prices in H1 2026, generating procurement and inventory gains compared to H1 2025's steady decline, along with significantly stronger export price spreads. - Olefins: Profit increased YoY, benefiting from the volatile naphtha price trend in H1 2026 and tight regional supply due to multiple crackers reducing output or declaring force majeure, pushing product prices higher.