MOEA announces mixed results for state-owned firms

CONTRAST: There was disappointing news from CPC and Taipower, but five other companies reported profits in the first six months of the year


Mon, Jul 24, 2006 - Page 12

Two of seven state-owned enterprises under the Ministry of Economic Affairs reported losses in the first half of this year, with deficits totalling NT$30.64 billion (US$935.6 million), according to the ministry's State-owned Enterprise Commission.

The commission's tally showed that both Chinese Petroleum Corp (CPC, 中油) and Taiwan Power Co (Taipower, 台電) reported a total of NT$33.21 billion in losses during the first six months of this year, although the five other state companies all made profits.

With rising fuel costs, Taipower saw a deficit of NT$467 million last month and a total of NT$13.56 billion in losses for the first six months of this year, according to the commission.

CPC posted profits of NT$405 million last month derived from its cost control measures and overseas investments, but the company remained NT$19.65 billion in the red for the first half of the year due to skyrocketing oil prices, the company said.

The state-run oil refiner has raised gasoline prices three times this year: once in February by NT$1 per liter, a second time by NT$2 per liter in April, and, most recently, earlier this month by NT$1 per liter. But the company said it still faces an estimated loss of NT$50 billion for the full year and may have to raise prices again to cover its import costs.

According to the commission, the five state-run companies that made profits are Taiwan Sugar Corp (台糖), which posted a pre-tax surplus of NT$1.296 billion; Taiwan Water Corp (台灣自來水), which reported a pre-tax surplus of NT$245 million; China Shipbuilding Corp (中船), which posted a pre-tax surplus of NT$483 million; Aerospace Industrial Development Corp (漢翔), which posted a pre-tax surplus of NT$79 million; and Tang Eng Iron Works Co (唐榮), which posted a pre-tax surplus of NT$465 million.