Taiwan Power Co (Taipower, 台電) on Thursday reported a pretax loss of NT$67.2 billion (US$2.26 billion) for the first five months of the year, widening from a pretax loss of NT$46.9 billion in the first four months and compared with a pretax profit of NT$14.1 billion for the same period last year.
The state-run utility’s aggregate losses climbed to NT$105.7 billion as of the end of May, compared with accumulated losses of NT$38.4 billion as of May 31 last year, the company said on its Web site, citing soaring international energy prices.
The implementation of summer electricity rates, which took effect on June 1 and are to run until Sept. 30, is expected to make a slight contribution to the company’s bottom line for last month.
Photo: Tu Chien-jung, Taipei Times
Moreover, electricity rate increases of 8.4 percent on average, which took effect on Friday, would further help Taipower ease its financial pressure.
Taipower is expected to pay an extra NT$300 billion for fuel imports this year, the Ministry of Economic Affairs said on Monday last week, as it announced the new electricity rates, including a 15 percent increase for large industrial users, such as 22,000 firms that consume high-voltage or ultra-high-voltage electricity.
However, about 97 percent of users, including households, small businesses and several service sectors, would be spared the increases in view of inflationary pressure, the ministry said.
Taipower’s cost of power generation this year increased significantly compared with last year, as Russia in February started an invasion of Ukraine and the COVID-19 pandemic continued to disrupt supply chains, boosting international coal and natural gas prices, acting chairman Tseng Wen-sheng (曾文生) said.
Asked whether Taipower’s pretax losses would this year exceed NT$100 billion, Tseng was quoted by the Chinese-language Commercial Times as saying on June 25 that it would depend on two factors: the increased electricity rates and the development of international fuel prices in the second half of the year.
SEE AEC ON PAGE 3
Delivery Hero SE is closing tech hubs in Taiwan and Turkey, and is to cut jobs at its Berlin headquarters, the German food delivery company said in a statement yesterday. The job cuts mean the company has reduced its workforce by about 13 percent during the course of this year, including a round of layoffs next month, the company said. The hub closures and cuts are part of the company’s strategy to increase the efficiency and quality of Delivery Hero’s main platform and Quick Commerce businesses, CEO Niklas Oestberg said in the statement. “While we believe that this is a necessary step as
EVA Airways Corp (長榮航空) on Tuesday said it would spend more than US$600 million upgrading 14 Boeing Co 777-300ER aircraft and buying engines with the aim of securing a competitive edge in the global market. EVA aims to spend up to US$354 million on the upgrade, which is expected to begin in 2026 and involve making improvements to 14 Boeing 777-300ER passenger planes that are less than 10 years old, the airline said in a regulatory filing. The work would include improving cabin seats, in-flight entertainment systems and the wider cabin environment, while adding seats for the airline’s “Royal Laurel” business class
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) chairman Mark Liu (劉德音) is to step down from his position in June next year and the company’s board of directors has nominated chief executive officer C.C. Wei (魏哲家) as his successor, the world’s largest contract chipmaker said yesterday. Liu has decided not to seek a nomination for a seat on the board and would retire from the company after the annual shareholders’ meeting, TSMC said in a statement. The board’s nomination, corporate governance and sustainability committee has recommended vice chairman and CEO Wei as the new chairman, it said. The unexpected announcement came as TSMC is
Arm Holdings PLC has laid off more than 70 software engineers in China, although it plans to relocate some of the roles outside of China, people with knowledge of the move said. The British firm’s actions mirror those of major chip companies, including Qualcomm Inc that have cut back on the global staffing level earlier this year as the semiconductor industry faces a downturn due to lackluster electronics demand. Last month, Arm gave a disappointing sales forecast amid a slump in smartphone sales. About 15 of the staff whose positions are being eliminated are to be offered different roles working on China-related