Formosa Petro stock: S&P cites lower leverage and stable outlook

Published on 10/30/2026 at 02:08 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Formosa Petro stock is included in S&P Global's upgrade of four Formosa companies. The outlook is stable as stronger cash flow supports lower leverage.

Rating hebt Finanzprofil hervor

S&P Global Ratings erwartet für die vier Unternehmen 2026 ein EBITDA von TWD 190 bis 210 Milliarden.
Für Formosa Petrochemical werden Raffinerieauslastungen von 75 bis 80 Prozent im Jahr 2026 und 80 bis 85 Prozent im Jahr 2027 erwartet.
Überkapazitäten bei Basischemikalien bleiben ein wesentliches Risiko für die Ertragsentwicklung.

Formosa Petro, TW0006505001, Illustration mit AI erstellt.

Formosa Petrochemical is included in S&P Global Ratings' upgrade of four Formosa companies, according to a research update dated October 19, 2026, and updated October 28. The agency raised the long-term issue credit ratings to BBB+ from BBB and kept a stable outlook. The S&P Global Ratings report assesses the four Formosa group companies on a combined proxy group credit profile that includes Formosa Petrochemical.

Lower leverage supports the upgrade

S&P said stronger operating cash flow, proceeds from equity stake disposals and higher values of short-term investments should improve the group's financial flexibility. The stable outlook reflects the agency's expectation that debt to EBITDA will remain below 0.5 times over the next one to two years.

The assessment also points to a more diversified earnings base. Electronic materials and components could contribute 40 to 50 percent of the group's consolidated EBITDA in 2027 and 2028, compared with less than 30 percent in 2024 and 2025. The agency expects refining margins to remain comparatively resilient, while chemical spreads could moderate as temporary supply disruptions fade.

Refining resilience meets chemical risk

For Formosa Petrochemical, S&P projects refinery utilization of 75 to 80 percent in 2026 and 80 to 85 percent in 2027. Olefin utilization could fall to around 45 percent in 2026 because of feedstock constraints and weak downstream demand before recovering to between 51 and 56 percent in 2027.

That outlook leaves the company exposed to the uneven performance of refining and petrochemical markets. S&P expects persistent capacity additions in China, competition from gas-based producers and soft downstream demand to constrain commodity chemical utilization and spreads. Its analysis therefore treats the shift toward differentiated polymers, specialty chemicals and semiconductor-grade materials as important to longer-term competitiveness, but not as an immediate solution.