AboutFPCCCompany Profile

Company Profile


Being caressed by warm breeze that burgeoned into an “astonishing performance” should be the best footnote for FPCC in year 2015.

Commencing from 2nd half of 2014, the collapse of crude oil prices has been jeopardizing the global economics, financial market, especially those export-oriented countries that highly rely on crude, are dipped into recession; currencies depreciation has further worsened the volatility of exchange rate among these countries. Japan, Europe, and China are applying a series of monetary policies such as lower interest rate, QE, etc., to strive against this quagmire while U.S., the only exception, is firmly on the track of recovery, initiating higher interest rate resulting in a strong dollar that further impact on general commodities.

Reviewing 2015, the global politics, economics, terrorism, environmental issues, etc., have caused uneasiness on people’s mind and tough challenges to our company’s operation. Yet, cheaper raw material prices have triggered more demand on petroleum products, widened the profit margins of petrochemical derivatives, with our solid competitiveness and sharp awareness on market situation, we have dodged the downturn impact on our overall operation, and successfully converted crisis into another prosperous and steadily growing year.

Financial Performance

FPCC generated US$ 19 billion in sales revenue in 2015, a 31% decline compared to US$ 27.6 billion in 2014. However, thanks to the cheap petroleum prices that triggered more demand, our margins were highly raised. Income before tax increased almost fivefold to US$ 1.5 billion compared to US$ 0.3 billion in 2014.

Business Management

Petroleum refining – advanced processing with flexible logistic

Equipment safety check

Our refining business has a solid foundation on the integration of logistic planning. To maximize our profit, we have been optimizing our operations by adjusting production models, shifting the yields of products from time to time based on the dynamic changes in the market. Hence, despite the regular maintenance in the first half of 2015, refining throughput climbed 4% year on year from 459,000 bpd to 477,000 bpd, resulting in a 2% growth of total sales volume to 21 million KL.

Regarding export, since the petroleum market in Northeast Asia has been oversupplied for years, we, targeting the emerging countries on their fast growing demand of petroleum products, have cooperated with oil majors and trading houses to jointly explore and expand markets in these areas. In 2015, as the low oil price propelled a surge in demand for gasoline in emerging countries, gasoline export has grown 3% year on year to 3.4 million KL. In contrast, gasoil export declined 3% year on year to 9.9 million KL due to the slowdown in global economic growth. Overall export sales slightly grew 0.3% year on year to 17.5 million KL.

In domestic market: By observing the consumers preference and to meet market requirements, as of June 2015, we have launched a sales campaign on our new product, the 95+ unleaded gasoline, highlighted by improving gasoline octane value without raising price, contributing C/P ratio to feedback our consumers. It has been proved to be a successful strategy after 6 months of promotion, created a new momentum to our sales activities.

In addition to this, we are also applying more flexible marketing policies to promote our sales volume as well as market share, that includes:

  • Enhance brand image:By way of presenting our new products, we have launched serial sales campaigns through the media and our gas stations, offering in place services to enhance our brand image, products characteristics, and consumers’ confidence.
  • Develop and expand new sources of customers:Since 2015, we have successively acquired the cooperation from the government sections, and expanding new business customers such as logistics companies by using Corporate Card; moreover, we have been consistently deploying Taxi Card gas stations to favor and attract taxi drivers. Thus, through these various marketing channels simultaneously, we have successfully increased the sales volume of gasoil and gasoline.
  • Environmental gas stations:To improve the competitiveness of our gas stations, we have set up operation servers as a platform that our franchiser can easily access for self-serving system, sharing common resources to save cost and improve the environment of gas stations, creating a bright and clean image to attract consumers, developing an all-win situation among gas stations, consumers and FPCC as well.
  • Flexible pricing:We have been applying the policy of “lower price earlier, raise price later” than our competitors, successfully created the time/price difference during weekend to attract the truck fleets and weekend drivers to our gas stations for refilling.

Petrochemical feedstock business- Thorough Vertical Integration

Our petrochemical business, deemed as the upstream plants in petrochemical industry, provides a steady feedstock supply to downstream units in our group. Taking full advantage on economic scale, flexible production and marketing strategies, we optimized production to make our vertical integration more effective so as to bring mutual benefit to both upstream and downstream companies. In 2015, our crackers were efficiently operated, enhanced the running rate and increased ethylene production to 3.061 million MT in 2015, 1% growth compared with 2014.

With regard to the market, price spread of petrochemical product remained widen, showing a tight supply due to maintenance of Asian Crackers in the first half of 2015. Although the margin narrowed in Q3 as the turnaround nearly completed and supply is back to normal. However, spread rebounded shortly due to unexpected sequential accidents of Crackers in Asian market. We were quickly responding with flexible maneuvering, contributing to the higher margin for Crackers than year 2014.

Utility business- smooth operation on co-generation units

With a total installed capacity of 2,820 MW, the primary mission of our Co-generation units is to offer a stable and sufficient power to all units within Mailiao complex. We have generated 21.44 million MT of steam and 14.6 billion KWH of electricity in 2015 which is 5% and 7% lower than last year respectively due to longer duration of planned maintenance.

Investment and expansion

The complex continues to expand new projects and improve process to increase the products added-value for performance advancement. We keep cooperating with well-known overseas companies and devoting to exploiting the downstream of C4 and C5 from olefin crackers. The annual capacity of 40,000 MT HSBC project, a J/V plant with Kraton, is now under construction and expected to be fully operational in 2016. The fruitful results of the high-valued investments will generate maximum profit by then. Another J/V project with Idemitsu Kosan, HHCR plant with the annual capacity of 36,000 MT, is about to be constructed and expected to be completed commissioning in 2018. Besides, the construction of Formosa Vietnam Ha-Tinh Steel plant, which FPCC holds 11.43% of its shares, was completed last year and expected to start up in mid-2016.

Community Service

Conducting Drill and enhance ability of contingency management

While pursuing the growth, we are also taking various social responsibilities. The environmental protection, social welfare, and local community development, etc., are what we care the most. The first edition of our “Corporate Social Responsibility Report” was released last year to show our relentless efforts, and it will be published annually.

In addition, for a closer relationship with local residents, we have joined several welfare activities such as developing local industries, sponsoring related constructions, offering scholarships and improving hardware facilities for schools. We also endeavor to brighten the native beauty by funding many local culture activities. Making contributions to feedback the local community is not only a part of our responsibilities but also a commitment that we will continuously strive harder.

Sales Target

Warmest caring for elders

In 2016, the petroleum prices are expected to remain at a low level and the demand for oil and petrochemical products may be increased accordingly. Consequently, in 2016, despite the regular maintenance, our estimated sales volume for gasoline and gasoil are 5.913 million KL and 11.051 million KL respectively while gasoline and gasoil sales are going up 4% and 2% compared with 2015.

For petrochemical products, we expect the production volume for ethylene and propylene are 3.058 million MT and 2.427 million MT. As for the Utility division, the key role is to provide consistent electricity and steam to meet the demand of all units in Mailiao Complex.

2016 Prospects

Looking into the upcoming year, although the global economic growth is predicted to be better than 2015 by several international institutions, we still have to consider the risks folded in these positive forecasts. The differences on each nation’s economic condition may lead to the contradictory monetary policies that could have caused more chaotic to global financial market. Geopolitical conflicts are continuously posing crisis while the slowdown of Chinese economy as well as the transformation of industrial development are also the uncertainty to the world.

Facing with such a turbulent year, we are ready at all times, making the right decisions against all challenges, gaining on the momentum for the future development, and once the global economics is back to recovery, our operation performances will surely be expected to a higher level of achievement.