Taiwan’s state-owned enterprises had mixed results last year

台灣國營企業去年的業績喜憂參半。

TAIPEI (Taiwan News) — Two of Taiwan’s four state-owned enterprises posted profits last year, while the others reported losses, according to the Ministry of Economic Affairs.

CPC Corp. posted a pre-tax loss of NT$9.1 billion (US$288 million) last year, bringing its total losses to NT$80.4 billion. Meanwhile, Taiwan Water Corp. recorded a loss of NT$4.97 billion, resulting in a total loss of NT$9.21 billion, per CNA.

In contrast, Taiwan Sugar Corp. reported a record after-tax net profit of NT$7.46 billion, mainly driven by its fuel, hospitality, and retail operations. Chair Wu Ming-chang (吳明昌) said the company will give each of its 3,080 employees a NT$3,600 bonus.

Taipower also posted profits of NT$73.6 billion through November and is expected to report full-year profits of NT$60 billion, ending three consecutive years of losses, the ministry said.

Despite total losses exceeding NT$348 billion, Taipower is expected to turn profitable this year as international energy prices fall and electricity rates rise. The rate adjustments this year target residential and commercial users, while industrial rates remain unchanged.

Hu Wen-chung (胡文中), director of the ministry’s State-owned Enterprises Department, said that CPC has posted losses for six straight years. Last year, the losses were mainly due to oil prices not being significantly adjusted and government measures to keep natural gas prices stable.

CPC has NT$130 billion in capital. To stabilize operations, the company has submitted a capital increase plan to the ministry, which is under review.

CPC said that international crude oil and liquefied natural gas supplies are expected to be sufficient this year, helping to lower import costs. The company also launched a moderate fuel price adjustment mechanism in December, which is expected to help offset losses.

Hu attributed Taiwan Water’s losses mainly to water prices not being adjusted for 31 years. Ongoing pipeline renovation and leak-repair projects also increased operating costs.

The company lost around NT$4.2 billion in 2023 and 2024, with losses showing an upward trend, Hu said. To address this, the company has been in discussions with the Water Resources Agency to set reasonable water rates.

Hu added that employees at these four state-owned enterprises could receive year-end bonuses this year of up to 4.4 months of pay.