TAIPEI (TVBS News) — The chairman of CPC Corporation (中油) announced on Monday (Nov. 4) that the company faces a cumulative loss of NT$62.7 billion. He urged the government to provide more financial support and ensure oil and gas prices reflect market realities.
The announcement came during the inauguration of newly appointed Chairman Fang Chen-jen (方振仁) and General Manager Chang Min (張敏). Fang identified four major challenges for CPC: net-zero transformation, gas supply resilience, petrochemical supply-demand imbalance, and poor financial health.
He emphasized that the pandemic, war, and global monetary tightening have caused international energy prices to fluctuate wildly. Fang stated that CPC, like Taiwan Power Company (台電), acts as a buffer against domestic price hikes, absorbing NT$400 billion in policy costs, which has strained its finances.
As of October, CPC reported a pre-tax loss of NT$30.4 billion and proposed a four-year capital increase plan of NT$350 billion. Fang hopes the government will compensate through budget allocations or capital injections. On the outlook for international oil prices, Fang mentioned that, despite predictions of a decline next year, the rapidly changing global situation makes forecasts difficult.
Taiwan Petroleum Workers' Union (台灣石油工會) Chairman Chen Chia-lin (陳嘉麟) criticized the Ministry of Economic Affairs (MOEA, 經濟部) for prioritizing electricity over other state-owned enterprises. He noted that CPC's high debt ratio of 92% affected its international credit rating and oil and gas procurement. Chen urged the ministry to lead the CPC in a stable energy transition.
