Transforming through Innovative Advances
Strengthening Core Business & Specialty Chemicals
2013 OUCC Shareholder Meeting was held on June 7, in which meeting 2012 Annual Report and Financial Statement were approved and a dividend distribution of 1.2 per share was passed. As a result from economic decline, the sales revenues of 2012 decreased by 12% to 12.27 billions and profit after taxes was 60% down to 1.15 billions as compared to 2011. EPS is NTD 1.32.
Despite the continuing lag in global economy, OUCC’s sales income of Q1/2013 sustained by 3.18 billions, profit after taxes of 0.23 billions, or EPS of 0.26 NTD, due to the loss of its most rewarding investment in PTA business. To maximize its profit, OUCC is undertaking further adjustments in its product line. With the limited additional new EG capacity, a shortage in supply from major producers in the Middle East along with the foreseeing sag in the price of ethylene and an expected turnaround of PTA market, it is believed OUCC’s outlook for the 2nd half 2013 shall turn bright.
Looking into the future, the demand of MEG shall stay growing as polyester industry remains steady. With only a few additional new capability prior to 2015 and the quality issues of the coal-based chemicals still pending, market for MEG shall look sound. So shall be OUCC’s future growth and profit in Specialty Chemicals, as its EODs have passed, in succession, clients’ product authentications, marketing and strategic alliances with global partners are also progressing.
To enhance its overall competitive advantage, OUCC is focusing on enlarging its core business capacity with collaborative efforts from its Technology and Development by optimizing its processing efficiency and product quality, to reduce the unit cost and increase profit margin, and, simultaneously, to push forward the development of its downstream EODs, a momentous milestone of OUCC’s towards the higher value-added.
Moreover, with full awareness of the advances of shale gas and coal chemistry respectively in North America and China, which introduce yet another uncertainty into the market, OUCC shall stay proactive and well prepare for such likely impact.
In summary, OUCC is persistent in its development into a diversified company with its core strength, to continue creating new added values for its customers, shareholders and employees.