Taiwan's CPC Corp. Posts First-Half Profit Despite Frozen Prices, Faces Rising Costs

Taiwan's state-owned oil and gas giant, CPC Corp., managed to post a pre-tax profit of NT$13.3 billion ($400 million) in the first half of 2026, a result that might seem counterintuitive given the frozen domestic prices for oil and gas.

The company attributed this interim success to the timing of its crude oil purchases. The oil refined during the first five months was acquired before the escalation of the Middle East conflict, meaning the costs were reflected with a lag of approximately three months. This allowed CPC Corp. to benefit from lower-cost inventory.

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The crude oil for refining in the first half was purchased before the war, and the costs are reflected with a delay.

However, the situation shifted significantly in June. As the impact of the Middle East conflict, which began in February, started to be reflected in procurement costs, CPC Corp. recorded a substantial pre-tax loss of NT$5.8 billion ($175 million) for that single month. The company is now bracing for a challenging second half, with projections indicating that the full-year loss could surpass NT$100 billion ($3 billion), a significant increase from last year's NT$8.4 billion ($250 million) deficit.

Adding to the financial pressure, CPC Corp. also absorbed losses from domestic sales of bottled gas and natural gas for industrial and residential use, totaling NT$2.1 billion ($63 million) and NT$14.2 billion ($425 million) respectively in the first six months. The company's profitability in the first half was partly buoyed by NT$8.5 billion ($255 million) in earnings from oil product exports and overseas oil and gas mining operations, where international market prices were more favorable.

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From June onwards, we started reflecting the cost of crude oil purchased after the war at a relatively high price.