Page 4 - CPC 2018 Annual Report

2 CPC Corporation, Taiwan 2018
INNOVATION AND
TRASFORMATION: A WINNING
VISION FOR THE FUTURE
Although international political developments in 2017 were characterized by uncertainty, overall the global economy has continued its moderate recovery. Cooperation on production cuts between the major producers in the Organization of Petroleum Exporting Countries (OPEC) and Russia resulted in a slow increase in oil prices to around US$65 per barrel in the second half of the year. In that situation, CPC has maintained a stable supply of oil and natural gas and petrochemicals for the domestic market as part of its commitment to accomplishing the missions assigned to it by the government. Thanks to the hard work and support of all of my colleagues, in 2017 we achieved the best earnings before tax performance since 1989.
CPC's business units made many significant achievements in 2017. These included:
- in exploration and production, obtaining the production license for the Oryx Oilfield in Chad; development plans are progressing on schedule.
- in the refining business, completing the update of the distillation and related processes in our Dalin Plant; and also finalizing the plan for investment that will enable improvements at the Third Heavy Oil Hydrodesulfurization Plant aimed at raising the quality of its products so as to meet future national standards.
- In our marketing business, completing the renovation of the public toilets in more than 200 gas stations in order to enhance the quality of service and hence also customer satisfaction.
- developments in our natural gas business saw the Yongan Plant unloading LNG from a Q-Flex class LNG carrier - second largest in the world - in November 2017 and the creation of more flexible shipping arrangements that will improve our overall capability in receiving LNG cargoes.
- launching a public green bond under our CSR program. This is the first such issued by a Taiwanese enterprise and evidences our support for the development of green energy financing on a national basis.
- sponsoring the "2017 Taipei Summer Universiade" international games by providing both the fuel for the vehicles transporting the athletes and CPC's own brand of eco- friendly detergent for their laundry service. This was in the context of our ongoing support for athletic pursuits and national sports development.
- relocating the Hsinchu tank farm in compliance with Hsinchu City Government's urban planning and regional prosperity development schemes.
- EPA approval on August 22, 2017 of the site for Taiwan’s Oil Production Environmental Education Exhibition - the first oil-related resource for education in environmental and sustainable development issues.
Chairman