TEPCO Swings into Annual Net Loss

Tokyo, May 1 (Jiji Press)–Tokyo Electric Power Company Holdings Inc. said Thursday that it swung into net loss in the fiscal year ended in March due to costs for decommissioning its disaster-stricken Fukushima No. 1 nuclear plant. The company logged a group net loss of 454.2 billion yen, against the year-before profit of 161.2 billion yen, under the weight of over 900 billion yen in charges related to the decommissioning of the plant. Revenue fell 7.1 pct to 6,328.5 billion yen as the company’s electricity sales volume shrank amid growing competition in the electricity retail market. Operating profit rose 44.0 pct to 337.6 billion yen as profit margins expanded due to a time lag in reflecting lower fuel prices in electricity bills. TEPCO’s free cash flow stood at a negative 103.2 billion yen, logging a negative figure for the eighth straight year. “Revenue is lagging relative to increased investment, including in supply facilities,” TEPCO President Tomoaki Kobayakawa said at a press conference. He expressed a willingness for tie-ups with other companies, including the possibility of accepting an injection of external capital. Nine other major electricity companies in Japan also suffered sales declines in the year. Net profit decreased at six companies, excluding Chubu Electric Power Co., Kyushu Electric Power Co. and Okinawa Electric Power Co. TEPCO, Tohoku Electric Power Co., Chubu Electric and Okinawa Electric did not release earnings estimates for the year ending in March 2027 while the other six forecast lower net profits because of higher liquefied natural gas prices. END [Copyright The Jiji Press, Ltd.]