What is the contract type for the derivative financial product transaction?

The contract type for the derivative financial product transaction is a Forward Contract.

What was the reason for Formosa Petrochemical engaging in these derivative transactions?

Formosa Petrochemical engaged in these derivative transactions purely for hedging purposes.

What is the total contract amount specified in the announcement?

The total contract amount specified in the announcement is USD 124,049,300.

What caused the unrealized losses on forward contracts to reach the loss limit?

The losses were caused by the significant increase in spot prices of crude oil and refined oil due to the US-Iran war.

What is the contract period for these forward contracts?

The contract period for these forward contracts is from January 2026 to December 2027.

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[Formosa Petrochemical] Announcement: Derivative Financial Product Transactions Reached Loss Limit

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AI Summary (NQ-processed)

Formosa Petrochemical announced that its derivative financial product transactions have reached the loss limit. The company incurred USD 48,180,500 in realized and unrealized losses due to hedging crude oil and refined oil prices, influenced by the US-Iran conflict. Despite exceeding the limit, the impact is deemed not significant due to the hedging purpose.

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Frequently Asked Questions

Q: What is the contract type for the derivative financial product transaction?: A: The contract type for the derivative financial product transaction is a Forward Contract.
Q: What was the reason for Formosa Petrochemical engaging in these derivative transactions?: A: Formosa Petrochemical engaged in these derivative transactions purely for hedging purposes.
Q: What is the total contract amount specified in the announcement?: A: The total contract amount specified in the announcement is USD 124,049,300.
Q: What caused the unrealized losses on forward contracts to reach the loss limit?: A: The losses were caused by the significant increase in spot prices of crude oil and refined oil due to the US-Iran war.
Q: What is the contract period for these forward contracts?: A: The contract period for these forward contracts is from January 2026 to December 2027.