TAIPEI (TVBS News) — CPC Corporation (中油) faces a financial crisis as its chairman announced on Friday (Jan. 17) a pre-tax loss of NT$35.5 billion for 2024, pushing accumulated losses to NT$69.1 billion, exceeding half of its capital. CPC Chairman Fang Chen-jen (方振仁) attributed the losses to volatile Brent crude prices, which fluctuated from US$92 per barrel in the first half of last year to US$68 in the second half.
Despite achieving NT$1.1 trillion in revenue last year, CPC absorbed oil and gas prices in line with government policies to stabilize prices. This led to a pre-tax loss of NT$35.5 billion and a debt ratio nearing 93%. The company absorbed NT$73.6 billion in gas, diesel, and LPG costs, including NT$10 billion from bottled gas alone.
Fang emphasized the need for CPC to cut costs and generate new revenue streams by adjusting 15 investment plans to reduce debt and interest expenses. Current liabilities reach NT$720 billion. Internally, CPC is considering a three-year capital increase plan of NT$350 billion, seeking government support to improve its financial structure.
If oil and gas prices remain misaligned, Fang estimates an additional NT$30 billion loss this year, continuing efforts to adjust prices reasonably. Fang also noted the potential impact of Donald Trump's presidency on tariffs and trade barriers, which could affect global oil and gas supply. Taiwan's chemical industry faces competition from China despite lower raw material costs, necessitating vigilance over regional competitive dynamics.