State-run firms’ total losses reach almost NT$2 billion

By Alfred Lee, The China Post

The Commission of National Corp. (CNC) reported yesterday that the losses of state-run firms totaled NT$1.82 billion in April.

Taiwan Power Company (Taipower), traditionally one of the most profitable among the state-run firms, registered a pretax loss of NT$1.612 billion in April. Operating results of the company in May are also pessimistic, according to the CNC. Taipower’s loss was due to its failure to pass the increasing costs of oil and natural gas onto the consumers, according to company officials. The increased costs of oil and gas were estimated at NT$11 billion. The added cost of NT$3.1 billion owing to the suspended construction of the fourth nuclear power plant would be another heavy financial burden for Taipower. The other money-losing state-run companies are Taiwan Sugar Company, NT$336 million; China Shipbuilding Corp., NT$240 million; Taiwan Machinery Manufacturing Corp., NT$67 million; Aerospace Industrial Development Corp., NT$13 million; Tang-Eng Iron Works Co., Ltd., NT$240 million; and ChungHsing Paper Corp. Kaohsiung Ammomiun Sulfate Co., Ltd. (KASC), Taiwan Agricultural & Industrial Development Corporation (TAIDC), with losses ranging from several millions to less than hundred of million.

The three profitable state-run companies are Chinese Petroleum Corp. (CPC), Taiwan Salt Industrial Corporation (TSIC), and Taiwan Water Supply Corporation (TWSC). The CPC recorded a profit of NT$1.36 billion in April.