CPC deficit increases
BThe deficit of state-run Chinese Petroleum Corp (CPC, 中油) has been increasing since the beginning of the year as a result of spiraling international crude oil prices, the CPC president said yesterday.
Chen Bao-lang (陳寶郎) said the company suffered a cumulative deficit of NT$13.8 billion (US$424.6 million) in crude oil imports in the first three months of this year, with the deficit totaling NT$3.246 billion in January, NT$6.084 billion in February and NT$4.5 billion last month.
Chen said the CPC has been striving to expand its business operations territory by engaging in various investment projects over the past several years. However, the company's looming deficit due to skyrocketing crude oil prices is putting these investment projects in danger.
CAA promises airport review
Civil Aeronautics Administration's (CAA) deputy director-general Lin Hsin-teh (林信得) promised yesterday that he will review a sharp decline in the number of weekly flights serving the Hengchun airport in southern Taiwan.
The airport was inaugurated in 2004 at a cost of NT$530 million (US$16.3 million). But the number of flights has dropped to just three from a peak of 35 flights per week.
CAA officials said privately that while they could push for an increase in the number of flights, the carriers have been lukewarm to CAA suggestions because there is no market for extra flights, in addition to which there are often windy conditions at the airport, especially in winter.
Taiwan Life rating adjusted
Taiwan Ratings Corp (中華信評), a local arm of Standard & Poor's Ratings Services, yesterday revised down the outlook for Taiwan Life Insurance Co (台灣人壽) from stable to negative.
The financial strength and issuer credit ratings for the nation's eighth-largest life insurer remains unchanged for the time-being at twAA-, the rating firm said in a statement.
The outlook revision follows Taiwan Life's winning bid on Thursday to acquire from the government most of the business of Kuo Hua Insurance Co (國華產險), which is technically insolvent and under regulatory supervision.
The outlook adjustment reflects the rising possibility that the acquisition will pressurize Taiwan Life's overall credit profile and whether the life insurer is equipped with the strategies required to operate property and casualty insurance businesses remains to be seen, the statement read.
Forex reserves are sound
Although Taiwan does not sit on top of the world's highest level of foreign exchange reserves, the size of the country's forex reserves remains sound, said Chu Hao-min (朱浩民), a professor at National Chengchi University.
Despite the fact that Taiwan's forex reserves have been amassing at a slower pace in recent years as a result of a decreasing trade surplus and a steady but not drastic capital outflow due to investment overseas, the country still holds a relatively high amount of forex reserves, Chu said.
Chu opined that forex reserves will remain relatively stable as long as the country's current account and capital account do not show large amounts of capital outflows.
According to statistics made public by the nation's central bank early this week, Taiwan holds the world's third largest amount -- US$257.05 billion -- in forex reserves as of the end of last month, coming after only China and Japan.
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