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CPC bleeds NT$2 billion in January on depreciation

TAIPEI, Taiwan -- Due to depreciation of the local currency, CPC Corporation (中油), a state-owned petroleum, natural gas and gasoline company, lost almost NT$2 billion in January.

CPC's revenues totaled NT$1.187 trillion last year, netting NT$3.9 billion. The company set a goal to rake in NT$1.28 trillion in revenue this year and net NT$17.4 billion. CPC chairman Lin Sheng-chung (林聖忠) said that he would “try his best” to achieve those targets by means of “asset revitalization” and “high-value investment.”

Regarding asset revitalization, CPC will cooperate with other parties to develop real estate in its portfolio for higher profits. CPC has applied to the Taipei City Government for commercial land re-zoning, in an effort to increase land leasing opportunities.

In regard to high-value investment, CPC has teamed up with TSRC Corporation (台橡) and Fubon Financial Holding (富邦金控) to form a petrochemical company, which is expected to break even in 2016. CPC is also cooperating with a Japanese enzyme company to form a joint venture that is expected to produce 180,000 tons of product output. The new company is expected to take shape this year, improving CPC's profit structure.

CPC general manager Paul Chen (陳綠蔚) said 80 percent of CPC's products are sold domestically, using the local currency. However, the company makes its purchases from overseas using the U.S. dollar. Although the company underperformed in January, Chen said that he is optimistic about the company's overall bottom line in 2014.

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