Chairperson
In marketing our petroleum products we have continued to aim high: we have upgraded our gas
stations and other hardware facilities, not only through design improvements that incorporate
local characteristics but also through raising the level of quality in customer service, cleanliness
of facilities and landscaping. Gas station channels are now operated more effectively, so as to
maximize the sales achieved for each unit of floor space. CPC won numerous customer service
awards in 2012, including First Place for gas stations in
Management
magazine’s Consumer’s Ideal
Brand and the
Reader’s Digest
Trusted Brand Platinum Award, for the 12th year in a row. After
many years’ stable supply of high-quality petroleum products and regard for consumer’s rights in
a clean, hygienic, and healthy service environment, we have established a superior brand image in
the public mind.
In the supply of natural gas, we imported 206 shiploads in 2012 and our sales volume amounted
to 16 billion cubic meters. This made Taiwan the world’s 16th largest importer of LNG. On the
supply side, we have signed long-term supply contracts with Qatar, Shell, and Australia’s Inpex
to ensure continuing stability. On the infrastructure side, the harbor serving the Yong An plant has
been improved by dredging and adding to and improving docking facilities; our LNG-carrying fleet
has been enlarged and brought up to world standard; and we have carried out second-stage
expansion of the Taichung plant. All of this work was undertaken to ensure that Taiwan’s supply of
natural gas is worry-free.
In the context of strengthening its competitiveness, CPC is looking to develop various businesses
in cooperation with external partners. By way of example, the Kuokuang Petrochemical
Technology Co. is currently evaluating the feasibility of, firstly, investing in a joint-venture project for
the production of high-value petrochemical products at Taichung Harbor; and, secondly, investing
in another joint-venture refining center in Malaysia.
In the area of trade, CPC has established its first overseas-based petroleum products trading
enterprise—CPC International Trading Pte. Ltd.—in Singapore. This will serve as the base for an
Asia-Pacific trading network for petroleum products, expanding CPC’s competitive participation in
the international crude oil market and expanding its export business. We have also used diverse
trading methods, such as multilateral trade and the carry trade, in pursuit of better performance in
our commercial operations.
CPC’s corporate governance system has been made more effective in its implementation with
the aim of enhancing the company’s competitiveness and risk-control capability, and thereby
strengthening its operations: the professionalism of our directors and supervisors was deployed
to reinforce the board of directors’ collective competence; board supervisors’ functions have
been fully realized; the internal control and auditing systems were strengthened; and disclosure of
important information has been brought up to international standards.
For many years CPC has shouldered the responsibility for carrying out national energy policy and
in that respect fulfilling its mission of achieving energy conservation, heightening energy efficiency
and assuring the energy supply. In the light of both our autonomy in corporate operations and
our mission as a state-owned enterprise, we will espouse the principle of “boldly facing challenge
and seeking renewal and change” in vigorous implementation of management reform, continuous
improvement of our operating structure and expansion of our operating territory. We will also work
actively to develop new businesses, invigorate our operating model and enhance our corporatized
operating capabilities. Additionally, we will allow our various business units greater operational
self-authorization and autonomy, reinforce their decision-making capabilities and participate
competitively in the international energy market.
Now in its 66th year of operation, CPC is Taiwan’s most important energy supplier. It is our hope
that all at CPC will work in the spirit of “active participation, fulfillment of responsibilities, rediscovery
of their enthusiasm and sense of involvement, creation of a system of incentives and clear
delineation of responsibility” - all as they burnish our brand, reach new heights of achievement and
mold CPC into an international energy company characterized by safety, cleanliness, respect and
competitiveness in the achievement of sustainable development.
Economic conditions are often plagued by turbulence and turmoil, and we wish to express
heartfelt thanks to our domestic and foreign customers and cooperating companies for their long-
term support and enabling CPC to continue growing and developing in this difficult operating
environment. In the future, we will steadily progress towards our vision of becoming an international
energy conglomerate that encompasses petroleum products, petrochemicals and high technology.
Our earnest hope is that you will all continue affording us the help and support we need to improve
our business operations even more and create an even better record of performance. For all of
that, we pledge our deep respect and appreciation.
5
2013
CPC
