Taipower swings to loss amid higher costs

2017/05/16 19:44:34 fontsize-small fontsize-default fontsize-big
(CNA file photo)

(CNA file photo)

Taipei, May 16 (CNA) Taiwan Power Co. (Taipower, 台電), one of four state-owned companies run by the Ministry of Economic Affairs (MOEA), said Tuesday that due to a spike in the cost of power generation, it had slipped to a loss in the first four months of the year.

The company posted NT$5.4 billion (US$179 million) in losses for the January-April period after recording NT$39.61 billion in annual pretax profit last year.

The losses in the first four months of the year were due to higher costs for fuel and natural gas to generate electricity amid increased demand and a shortfall in nuclear power supply, Taipower said, adding that its bottom line was also squeezed by a more than 26 percent increase in coal prices.

Attributing the high electricity demand to relatively warm temperatures so far this year, the company noted that it had recorded NT$17.8 billion in pretax profit in the first four months of 2016 and had remained profitable from 2014-2016.

Taipower was the only one of the four MOEA-run enterprises to report a loss for the January to April period this year.

CPC Corp., Taiwan (中油) benefited from higher international crude oil prices, raking in more than NT$10 billion in pretax profit in the four-month period, the highest among the three profitable companies.

It reported a pretax profit of NT$10.89 billion for four-month period, a sharp rise from NT$4.2 billion a year earlier, as an increase in international crude oil prices boosted its product prices.

In 2016, CPC posted NT$35.4 billion in pretax profit after reporting a loss of NT$1.4 billion the previous year.

Meanwhile, Taiwan Sugar Corp. (Taisugar, 台糖) posted NT$1.46 billion in pretax profit for the January to April period, down from NT$2.32 billion a year earlier, citing a decline in revenue from property development.

The fourth MOEA-run company, Taiwan Water Corp. (TWC, 台水), saw a year-on-year increase in pretax profit for the four-month period, from NT$195 million to NT$525 million, amid higher water consumption in the industrial sector.

(By Huang Li-yun and Frances Huang)

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