Page 20 - 2022 CPC Corporation,Taiwan

Downstream Operations Marketing CPC Petroleum Products CPC’s marketing of refined petroleum products in its domestic market is primarily focused on the transportation sector—specifically the gasoline, diesel, fuel oil and aviation fuel. In 2021, its sales of those products in Taiwan totaled 16.74 million kiloliters in volume and generated revenue of approximately NT$ 351.8 billion. Automotive gasoline accounted for the largest share at approximately 53.6%, followed by diesel at about 27.9%, fuel oil at about 12.7% and aviation fuel at around 5.8%. Taiwan’s internal market for refined petroleum products is divided chiefly between CPC and the Formosa Plastics Group and competition between the two continues to grow increasingly intense. CPC has worked hard at leveraging the advantage of its marketing network, and to protect its market share, by consolidating its gas station network. Of the 2,512 sites operating in Taiwan at the end of 2021, 623 were directly run by CPC and other parties, and 1,292 were privately-owned by CPC franchisees, adding up to a total of 1,915 sites. Their sales as a part of the total market volume breaks down as 79.4% gasoline, 77.2% diesel, 95.7% fuel oil and 59.1% aviation fuel, with the overall market share being 78.8%. Storage and transportation network meets the requirements of all areas In terms of storage and transportation, CPC not only runs its own gas stations, but also operates aviation fueling stations at all of Taiwan’s airports: Songshan, Taoyuan, Kaohsiung, Taichung, Hualien, Taitung, Kinmen, and Penghu. Around the coast, it has marine bunkering stations for international vessels at Keelung, Suao, Taichung, Kaohsiung, and Hualien ports. As of the end of 2021, CPC operated 14 product distribution centers located country-wide at Keelung, Shimen, Hsinchu, Taichung, Taichung Harbor, Wangtian, Minxiong, Tainan, Fengde, Qiaotou, Suao, Hualien, Huxi, Kinmen and Matsu. They supplied products to gas stations in their surrounding areas with a total of 17,716,000 kiloliters of product over the course of the year. CPC has three chemical analysis centers/petroleum laboratories in Keelung, Taichung and Kaohsiung, plus six testing laboratories, which are in charge of testing products for quality control, and altogether these handled 28,994 samples in 2021. The transportation department transported 11,566,000 kiloliters of oil in 2021, and the total distance covered was 39,783,000 kilometers. Proportion of each oil product/sales revenue Automotive gasoline 53.6 % Aviation fuel Fuel oil 5.8 % 12.7 % Diesel 27.9 %