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Tokyo Elec.Power. (48FI)

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Tuesday 08 November, 2011

Tokyo Elec.Power.

Financial Outlook

RNS Number : 7042R
Tokyo Electric Power Co Inc
08 November 2011
 

This English translation has been prepared with the intention of creating an accurate and complete reflection of the original Japanese version for the convenience of our English-speaking audience. However, if there are any discrepancies between the translation and the original, the latter shall prevail.

 

FY2011 Interim Financial Results

(April 1 through September 30, 2011)

 

November 4, 2011

The Tokyo Electric Power Co., Inc.

 

The Tokyo Electric Power Co., Inc. (TEPCO) announced that operating revenues for the FY2011 interim (from April 1 to September 30, 2011) decreased 7.7% from the same period of the previous fiscal year to 2,502.7 billion yen (down 8.3% to 2,389.1 billion yen on a non-consolidated basis). Ordinary loss was 105.7 billion yen (130.4 billion yen on a non-consolidated basis).

 

Extraordinary gains were 568.1 billion yen (568.0 billion yen on a non-consolidated basis), due to Grants-in-aid from Nuclear Damage Compensation Facilitation Corporation totaling 543.6 billion yen.

 

Extraordinary losses were 1,075.9 billion yen (1,075.6 billion yen on a non-consolidated basis), due to costs and losses of 185.0 billion yen (184.6 billion yen on a non-consolidated basis) resulting from restoration costs, etc. of the properties damaged by the Tohoku-Chihou-Taiheiyou-Oki Earthquake, and nuclear damage compensation of 890.9 billion yen which is calculated by subtracting the governmental indemnity expected to be paid according to Indemnity Agreement for Nuclear Damage Compensation of 120.0 billion yen from the reasonably estimated nuclear damage compensation of 1,010.9 billion yen.

 

Therefore, net losses were 627.2 billion yen (638.4 billion yen on non-consolidated basis).

 

Electricity sales decreased 13.6% from the same period of the previous fiscal year to 130.2 billion kWh as a result of a decrease of all types of electricity usage compared to the previous year due to customer cooperation in helping us save electricity, a decline in production activities and decreased air-conditioner demand due to relatively low temperatures this summer.

Per demand type, the electricity sales for residential usage decreased by 12.5% to 44.1 billion kWh, low-voltage users decreased by 14.2% to 5.7 billion kWh, and those for specified-scale demand decreased by 14.2% to 80.4 billion kWh, compared with the previous fiscal year, respectively.

 

On the revenue side, electricity industry sales revenues decreased 8.9% from the same period of the previous fiscal year to 2,227.3 billion yen due to such factors as a decrease in electricity sales. Operating revenues, including electricity sales to other companies, etc., decreased by 7.7% to 2,502.7 billion yen (down 8.3% to 2,389.1 billion yen on a non-consolidated basis). Ordinary revenues decreased by 7.4% to 2,550.0 billion yen (down 8.1% to 2,430.1 billion yen on a non-consolidated basis). 

 

On the expense side, ordinary expenses in the electricity business increased 4.0% from the previous fiscal year to 2,655.8 billion yen (up 3.9% to 2,560.5 billion yen on a non-consolidated basis) due to the increase in fuel costs caused by fuel price hikes.

 

 



Summary of FY2011 Interim Financial Results

Consolidated



(Unit: Billions of yen)


Interim of FY2011

(April 1, 2011 - September 30, 2011)

Interim of FY2010

(April 1, 2010 - September 30, 2010)

Comparison

A

B

A - B

A / B (%)

Operating Revenues

         2,502.7

         2,710.7

     -207.9

        92.3

Ordinary Revenues

         2,550.0

         2,754.9

     -204.8

        92.6

Ordinary Expenses

         2,655.8

         2,553.5

      102.3

      104.0

Ordinary Income

           -105.7

            201.3

     -307.1

-

Extraordinary Income

            568.1

-

      568.1

-

Extraordinary Loss

         1,075.9

              57.1

   1,018.7

-

Net Income

           -627.2

              92.2

     -719.5

-

(Note)        Interim of FY2011    Number of consolidated subsidiaries: 162

                                                         Number of affiliated companies (equity method): 76

                   Interim of FY2010    Number of consolidated subsidiaries: 173

                                                         Number of affiliated companies (equity method): 62

                   FY2010                       Number of consolidated subsidiaries: 168

                                                         Number of affiliated companies (equity method): 70

 

Non-Consolidated



(Unit: Billions of yen)


Interim of FY2011

Interim of FY2010

Comparison

A

B

A - B

A / B (%)

Operating Revenues

          2,389.1

          2,606.4

     -217.3

        91.7

Ordinary Revenues

          2,430.1

          2,644.2

     -214.1

        91.9

Ordinary Expenses

          2,560.5

          2,464.8

        95.7

      103.9

Ordinary Income

            -130.4

             179.3

     -309.8

-

Extraordinary Income

             568.0

-

      568.0

-

Extraordinary Loss

          1,075.6

               56.6

   1,018.9

-

Net Income

            -638.4

               80.1

     -718.6

-

 

Electricity Sales



(Unit: Billions of kWh)


Interim of FY2011

Interim of FY2010

Comparison

A

B

A - B

A / B (%)

Residential

     44.1

     50.4

       -6.3

       87.5

Low-Voltage Power

       5.7

       6.6

       -0.9

       85.8

Specific-Scale Demand

     80.4

     93.7

     -13.3

       85.8

(Re-publication)

Large Industrial Power

   (38.6)

   (42.8)

      (-4.2)

     (90.2)

Total

   130.2

   150.7

     -20.5

86.4

 

Dividends


Annual Cash Dividends per Share of Common Stock (yen)

Total Annual

Cash Dividends

(Millions of yen)

Dividend Payout Ratio

(Consolidated)

(%)


Interim

Fiscal year-end

Fiscal Year ended March 31, 2012 (Projection)

        0.00

         0.00

         0.00

-

-

Fiscal Year

ended March 31, 2011

      30.00

       30.00

         0.00

40,500

-



 

Item

Interim of FY2011

(April 1, 2011 - September 30, 2011)

Interim of FY2010

(April 1, 2010 - September 30, 2010)

Comparison

(A)

(B)

(A) - (B)

(A) / (B)

(Billions of yen)

(Billions of yen)

(Billions of yen)

(%)

Ordinary Revenues

(Operating Revenues)

(2,389.1)

(2,606.4)

(-217.3)

(91.7)

Residential

962.7

1,067.6

-104.9

90.2

Commercial and Industrial

1,264.6

1,378.5

-113.9

91.7

Subtotal

2,227.3

2,446.2

-218.8

91.1

Others

202.7

198.0

4.7

102.4

Total

2,430.1

2,644.2

-214.1

91.9

Ordinary Expenses

Personnel

185.8

224.0

-38.2

82.9

Fuel

978.5

767.6

210.9

127.5

Maintenance

129.1

190.0

-60.8

68.0

Depreciation

318.0

336.9

-18.9

94.4

Electricity Purchases

387.0

351.5

35.5

110.1

Interest Payments

64.9

63.4

1.4

102.3

Taxes other than Income Taxes

160.4

181.4

-21.0

88.4

Nuclear Power Back-End

50.5

60.8

-10.2

83.2

Others

285.9

288.8

-2.8

99.0

Total

2,560.5

2,464.8

95.7

103.9

Ordinary Income

-130.4

179.3

-309.8

-

Provision for Reversal of Reserves for Water Level Fluctuations

0.1

1.7

-1.6

6.5

Reserve for Depreciation of Nuclear Plants Construction

0.3

-

0.3

-

Extraordinary Income

568.0

-

568.0

-

Extraordinary Loss

1,075.6

56.6

1,018.9

-

Income before Income Taxes

-638.4

120.9

-759.4

-

Income Taxes etc.

0

40.7

-40.7

0.0

Net Income

-638.4

80.1

-718.6

-

Note:     Fractions smaller than 0.1 billion yen are rounded off.



Projections for Fiscal Year 2011

 

The projections for FY2011 have been left as "to be determined," since it is difficult to estimate the future supply and demand due to the effects of the Tohoku-Chihou-Taiheiyou-Oki Earthquake.

However, we decided to show the projections for FY2011 based on our special business plan which was developed in accordance with article 45 of the Nuclear Compensation Disaster Law that was approved by the ministers in charge today.

 

Electricity sales for FY2011, based on the results from April to September and our projection of weak demand, may decrease 9.0% from the same period of the previous fiscal year to 267.1 billion kWh. Operating revenues is estimated to be 5,315.0 billion yen (5,080.0 billion yen on non-consolidated basis)

 

As for the expenses in the electricity business, fuel costs are expected to increase due to the growth in electricity demand.

 

As a result, ordinary income is expected to be 400 billion yen (410 billion yen on a non-consolidated basis), and net losses are expected to be 600 billion yen (575 billion yen on non-consolidated basis).

 

Consolidated Basis

Operating revenues:        Approx.  5,315.0   billion yen

Ordinary income:             Approx.    -400.0   billion yen

Net income:                       Approx.    -600.0   billion yen

 

Non-Consolidated Basis

Operating revenues:        Approx.  5,080.0   billion yen

Ordinary income:             Approx.    -410.0   billion yen

Net income:                       Approx.    -575.0   billion yen

 



Reference 1

 

Table of Data on Revenues and Expenses (Non-Consolidated Basis)

 

 


FY2011

(Projected at the end of

2nd quarter of FY2011)

Interim of FY2011

(Results)

Electricity Sales

(Percentage Change over the Previous Fiscal Year)

267.1 billion kWh

(- 9.0 %)

130.2 billion kWh

(- 13.6 %)

Crude Oil Price (All Japan CIF)

Approx. $112 / barrel

$113.93 / barrel

Exchange Rate (Interbank)

Approx. 80yen / dollar

79.76yen / dollar

Capacity Factor of Nuclear Power Plants

Approx. 18 %

25.1 %

Flow Rate

Approx. 103 %

104.4 %

Financial Impact



Fuel Cost



CIF price: $1 / barrel

Approx. 19.0 billion yen


Exchange rate: \1/ dollar

Approx. 28.0 billion yen


  Capacity Factor of Nuclear Power Plants: 1%

Approx. 15.0 billion yen


Interest Cost



Interest Rate: 1% (Long and Short-Term)

Approx. 23.0 billion yen


 



Reference 2

 

Breakdown of Extraordinary Income (Non-Consolidated Basis)

 

              (Unit: Billion yen)

Breakdown

Amount

Grants-in-aid from Nuclear Damage Compensation Facilitation Corporation

543.6

Gain on Sales of Investment Securities

24.4

Total

568.0

Note:      Concerning the amount of financial support we requested for the fund on October 28, 2011, the amount was calculated by subtracting the governmental indemnity expected to be paid according to Indemnity Agreement for Nuclear Damage Compensation of 1,010.9 billion yen.

 



Reference 3

 

Breakdown of Extraordinary Loss (Non-Consolidated Basis)

 

              (Unit: Billion yen)

Breakdown

Amount

Extraordinary Loss on Disaster

184.6

Nuclear Damage Compensation

890.9

Total

,756.0

 

Extraordinary Loss on Disaster                                                                      (Unit: Billion yen)

Breakdown

Interim of FY2011

(additional amount to the current fiscal year)

FY2010

(previously issued)

References

(accumulated amount)

Damage due to the Unit 1 through 4 of Fukushima Daiichi Nuclear Power Station

166.0

633.3

799.3

Others

18.6

384.2

402.9

Total

184.6

1,017.5

1,202.2

Note: Figures in this table are reasonably estimated amount at present.

 

Compensation for Nuclear Damage                                                               (Unit: Billion yen)

Breakdown

Interim of FY2011

Reference:

 1st Quarter of FY2011

(recorded from April to Jun 2011)

Reference:

Difference from 1st Quarter of FY2011

(recorded from July to Sep. 2011)

Individuals

431.5

229.6

201.8

Companies and Organizations

566.2

168.0

398.2

Others

13.1

-

13.1

Expected proceeds based on Act on Contract for Indemnification of Nuclear Damage Compensation

-120.0

-

-120.0

Total

890.9

397.7

493.1

Note:    Figures in this table are reasonably estimated amount at present. Compensation for Nuclear Damage has been posted since the 1st Quarter of FY2011.

 


November 4, 2011

Notice concerning Extraordinary Income and Loss Posted in FY 2011 Second Quarter Earnings Results, Major Subsequent Events, Variance between First Half Earnings Results of FY2010 and FY2011, and Revision of the Earnings Forecasts

 

 

As to the earnings results for the second quarter of FY2011, or the fiscal year ending March 31, 2012, released today, The Tokyo Electric Power Company Incorporated (TEPCO, TSE: 9501) hereby makes a notice concerning extraordinary income and loss posted, the company's major subsequent events, variance between first half earnings results of FY2010 and FY2011, and revision of the earnings forecasts. The details are as follows.

 

1. Extraordinary income

 (1) Grants-in-aid from Nuclear Damage Compensation Facilitation Corporation

        As TEPCO requested financial assistance grounded on an article of Law concerning Formation of a Nuclear Damage Compensation Facilitation Corporation (Law No.94 approved on August 10, 2011), the company recognized Grants-in-aid from Nuclear Damage Compensation Facilitation Corporation of 543.6 billion yen as an extraordinary income in this quarter.

(2) Gain on sales of securities

        TEPCO recognized gain on sales of securities of 24.5 billion yen (24.4 billion yen on a non-consolidated basis) in this quarter.

 

2. Extraordinary loss

 (1) Extraordinary loss on natural disaster

        TEPCO recognized expenses and losses for restoring damaged facilities by the Tohoku-Chihou-Taiheiyou-Oki Earthquake in the quarter of 185.0 billion yen (184.6 billion yen on a non-consolidated basis.) For your reference, the amount of an extraordinary loss on natural disaster the company recorded in the previous quarter was 105.5 billion yen (105.3 billion yen on a non-consolidated basis.)

(2) Expenses for nuclear damage compensation

        Based on the "Interim Guidelines for Judgment on the Scope of Nuclear Damage" resolved by Government's Nuclear Damages Indemnification Adjustment Committee, TEPCO estimated foreseeable portions of its nuclear damage compensation caused by a series of accidents at our Fukushima Daiichi Nuclear Power Station at 1,010.9 billion yen. TEPCO recognized the expenses for nuclear damage compensation of 890.9 billion yen, deducting the amount of the Governmental indemnity expected to be paid to the company according to Law concerning Indemnity Agreement for Nuclear Damage Compensation (Law No.148 approved on June 17, 1961) of 120 billion yen from the estimate.

 

3. Major subsequent events

        As stated in Section 1 (1) on this document, TEPCO asked Nuclear Damage Compensation Facilitation Corporation for its financial assistance. After that, TEPCO officially applied for the grants-in-aid from the Corporation (the amount after deduction of the Governmental indemnity expected to be paid to the company according to Law concerning Indemnity Agreement for Nuclear Damage Compensation,) and today, November 4, the Corporation officially made a decision to pay out the amount TEPCO applied as funds for payments of the nuclear damage compensation. Therefore, grants-in-aid from Nuclear Damage Compensation Facilitation Corporation are to increase by 347.2 billion yen by the end of this fiscal year.

 

4. Variance between First Half Earnings Results of FY2010 and FY2011, and Revision of the Earnings Forecasts

 (1) Variance between First Half Earnings Results of FY2010 and FY2011

   <Consolidated basis>

 (Unit: million yen, unless otherwise noted)


Operating Revenues

Operating Income

Ordinary Income

Net Income

Net Income per Share (yen)

FY2010 1st Half Results (A)

2,710,744

235,808

201,381

92,288

68.44

FY2011 1st Half Results (B)

2,502,752

(60,600)

(105,748)

(627,299)

(391.45)

Variance

 (B - A)

(207,991)

(296,408)

(307,129)

(719,588)


Changes (%)

(7.7)


 

   <Non-consolidated basis>

 (Unit: million yen, unless otherwise noted)


Operating Revenues

Operating Income

Ordinary Income

Net Income

Net Income per Share (yen)

FY2010 1st Half Results (A)

2,606,468

216,693

179,388

80,170

59.38

FY2011 1st Half Results (B)

2,389,166

(82,777)

(130,471)

(638,463)

(398.02)

Variance

 (B - A)

(217,302)

(299,471)

(309,860)

(718,634)


Changes (%)

(8.3)


 


(2) Revision of the Earnings Forecasts

   <Consolidated basis>

 (Unit: million yen, unless otherwise noted)


Operating Revenues

Operating Income

Ordinary Income

Net Income

Net Income per Share (yen)

The Previous Forecast (A)

The Revised Forecast (B)

5,315,000

(305,000)

(400,000)

(600,000)

(374.41)

Variance

 (B - A)


Changes (%)


(Reference)

FY2010 Actual Results

5,368,536

399,624

317,696

(1,247,348)

(846.64)

 

   <Non-consolidated basis>

 (Unit: million yen, unless otherwise noted)


Operating Revenues

Operating Income

Ordinary Income

Net Income

Net Income per Share (yen)

The Previous Forecast (A)

The Revised Forecast (B)

5,080,000

(335,000)

(410,000)

(575,000)

(358.46)

Variance

 (B - A)


Changes (%)


(Reference)

FY2010 Actual Results

5,146,318

356,658

271,066

(1,258,552)

(853.33)

 

 (3) The Reasons for the Revision

        We have not disclosed consolidated or non-consolidated earnings forecasts for FY2011 as it was extremely difficult for us to certainly estimate the full-year power demand and supply balance due to the impacts of the Tohoku-Chihou-Taiheiyou-Oki Earthquake. Today, however, we have disclosed our FY2011 full-year business performance outlook appeared on the special business plan prepared based on Article 45 of Law concerning Nuclear Damage Compensation Facilitation Corporation after an authorization by the minister in charge. TEPCO hereby announces the numbers as our full-year earnings forecasts.


This information is provided by RNS
The company news service from the London Stock Exchange
 
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