TAIPEI (Taiwan News) — Chair Fang Jenn-Zen (方振仁) said CPC aims to return to profitability this year, with pre-tax profit projected to reach NT$8 billion (US$258 million), marking the end of six consecutive years of losses.

At a Wednesday press conference, Fang said that CPC recorded a pre-tax loss of NT$9.1 billion last year, bringing its accumulated losses to NT$80.4 billion. He noted that global crude oil and natural gas prices have stabilized this year, easing cost pressures, per CNA.

CPC has covered part of Taipower’s natural gas costs to support the government’s price stabilization efforts, a move that weighed on the company’s operations. Between 2021 and 2024, CPC took on more than NT$430 billion in gas costs and continued to shoulder part of the burden last year.

Looking ahead, Fang estimated that global crude oil production will remain in surplus this year, with an expected oversupply of around three million barrels. Although US–Iran tensions have pushed oil prices higher in the short term, he said the conflict may not have a significant long-term impact on prices. 

To help curb CPC’s long-term losses, the government in December implemented partial increases in oil and natural gas prices, including adjustments to bottled gas. This measure could help the company significantly reduce its deficit, Fang noted. 

The company pays up to NT$14 billion annually in interest on its debt. To address this, the company has proposed a four-year, NT$350 billion capital increase plan to the Ministry of Economic Affairs, which could also fund its natural gas infrastructure projects in Taoyuan and Kaohsiung, as well as investments needed for its net-zero transition measures.

Fang added that the company will continue rolling out projects to improve energy efficiency and develop sustainable aviation fuel. A dedicated SAF production line is scheduled to be set up at CPC’s Taoyuan refinery in June, with annual output expected to reach 12,000 tonnes.

SAF, produced from vegetable oils, waste oils, and algae, can significantly cut carbon emissions. The initiative is designed to help domestic airlines reach a 5% SAF usage target by 2030.

CPC’s facilities emitted more than 7.65 million tonnes of carbon last year, generating carbon fees of NT$670 million. The company is negotiating discounts with the Ministry of Environment and has set a target to cut emissions by 50.4% by 2030.