High speed rail operator sees first ever profit after five years
The China Post news staff
March 31, 2012, 12:05 am TWN
The China Post news staff --Taiwan High Speed Railway Corp. (THSRC), which runs the bullet train service in Taiwan, reported yesterday its first ever annual profit in five years of operations. But the company also acknowledged that there has been a large operating deficit accumulated over the years.
THSRC launched the high-speed rail service five years ago with a combined operating loss of NT$73.5 billion, caused mainly by heavy construction costs and interest burden.
But THSRC announced on its corporate website that the company generated a profit of NT$5.78 billion in 2011 due to increasing customers and improvement in administration to slash the total loss to NT$67.7 billion.
The financial performance represented the first banner year for the corporation with significant improvement over 2010 which still saw an annual operating deficit of NT$1.2 billion.
An executive of THSRC said the healthy corporate financial trend shows that THSRC possesses the potential to continue to improve operations for greater earnings in the years ahead in spite of the obligation of heavy interest repayments.
He said that THSRC is required to repay about NT$8.8 billion annually over the coming years as interest on its bank loans.