[Formosa Petrochemical] Announcement: Derivative Financial Product Transactions Reached Loss Limit
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.
📋 Article Processing Timeline
- 📰 Published: April 8, 2026 at 09:00
- 🔍 Collected: April 9, 2026 at 08:00 (23h 0m after Published)
- 🤖 AI Analyzed: April 19, 2026 at 02:58 (234h 58m after Collected)
1. Contract Type: Forward Contract
2. Date of Fact Occurrence: 2026/4/8
3. Contract Amount: USD 124,049,300
4. Deposit or Premium Amount: None
5. Total or Individual Contract Loss Limit Set by Handling Procedures: Individual contract losses for energy futures and derivative products are limited to USD 5 million; total contract losses are limited to USD 11 million.
6. Reason for Engaging in Derivative Transactions: For hedging purposes
7. Hedged Items: Crude oil and refined oil
8. Amount of Hedged Positions: USD 122,430,900
9. Profit and Loss Status of Hedged Items: Realized and unrealized losses USD 48,180,500
10. Loss Amount Assessed at Fair Value (Including Realized and Unrealized): USD 48,180,500
11. Cause of Loss and Impact on the Company: Our company's derivative energy product transactions are purely for hedging. Due to the significant increase in spot prices of crude oil and refined oil caused by the US-Iran war, unrealized losses on forward contracts reached the loss limit. As this is a hedging transaction, it has no significant impact on the company.
12. Contract Period: January 2026 - December 2027
13. Contractual Restrictions: None
14. Other Important Agreements: None
15. Other Matters to Note: None
2. Date of Fact Occurrence: 2026/4/8
3. Contract Amount: USD 124,049,300
4. Deposit or Premium Amount: None
5. Total or Individual Contract Loss Limit Set by Handling Procedures: Individual contract losses for energy futures and derivative products are limited to USD 5 million; total contract losses are limited to USD 11 million.
6. Reason for Engaging in Derivative Transactions: For hedging purposes
7. Hedged Items: Crude oil and refined oil
8. Amount of Hedged Positions: USD 122,430,900
9. Profit and Loss Status of Hedged Items: Realized and unrealized losses USD 48,180,500
10. Loss Amount Assessed at Fair Value (Including Realized and Unrealized): USD 48,180,500
11. Cause of Loss and Impact on the Company: Our company's derivative energy product transactions are purely for hedging. Due to the significant increase in spot prices of crude oil and refined oil caused by the US-Iran war, unrealized losses on forward contracts reached the loss limit. As this is a hedging transaction, it has no significant impact on the company.
12. Contract Period: January 2026 - December 2027
13. Contractual Restrictions: None
14. Other Important Agreements: None
15. Other Matters to Note: None