Taipower suffers huge loss, other state-run businesses gain

Tai power recorded a loss reaching NT$24 billion (US$785 million) in the first half of the year, making it the only one of four state-run enterprises.

Taipei, July 16 (CNA)-Taiwan Power Co. (Taipower) recorded a loss reaching NT$24 billion (US$785 million) in the first half of the year, making it the only one of four state-run enterprises under the Ministry of Economic Affairs (MOEA), according to data from the MOEA. Economic Affairs.

The loss was a big leap from a deficit of NT$7.1 billion Taipower generated in the same period of last year. Taipower spokesman Hsu Tsao-hua (徐造華) attributed the loss to higher fuel prices compared to last year.

In addition, the company had to increase its costly electricity output from natural gas generators in accordance with the government’s air pollution control and coal-reduction policies, Hsu added.

The other three state-operated companies under the MOEA are Taiwan Sugar Corp., Taiwan Water Corp., and oil refiner CPC Corp., Taiwan.

The data shows that CPC generated NT$29.4 billion in pretax profit in the first six months of the year, higher than the NT$17.26 billion profit the company reported in the same period of last year.

CPC generated NT$29.4 billion in pretax profit in the first six months of the year.

CPC Vice President Huang Jen-hung (黃仁弘) said that although the government activated a fuel price stabilization mechanism in May, under which CPC has to absorb part of a rise in domestic fuel prices, the company saw its profits increase thanks to growth in international  prices for crude oil and other petrochemical materials.

Also since the beginning of the year, the company has been free of accidents leading to production suspesnsion. Output this year has been smooth so far, Huang said.

Benefiting from land disposal, Taiwan Sugar recorded a pretax profit of NT$3.3 billion in the period from January to June. The profit, however, was a decline of NT$268 million compared with the profit the company made in the same six-month period of last year.
As for Taiwan Water, it made a pretax profit of NT$222 million in the first half of the year, down by over 60 percent from NT$576 million in pretax profit in the same period of last year, due to an increase in power, repair and material costs.