TOHOKU ELECTRIC POWER COMPANY, INCORPORATED TOHOKU ELECTRIC POWER CO., INC.
July 31, 2023
Financial Results for the First Quarter of Fiscal Year ending March 31, 2024 (FY2023) and
Financial Forecasts for FY2023
Tohoku Electric Power CO., Inc. released its financial results for the first quarter of FY2023 (April 1, 2023 through June 30, 2023) and Financial Forecasts for FY2023 today.
【Consolidated Financial Results】
The result of the first quarter is as follows: Total electricity sales volume decreased to 16.6 TWh, a year-on-year decrease of 9.7% because of a decrease in retail electricity sales volume due to a decreased heating demand in early spring when temperatures were high and energy-saving initiatives and the decrease in industrial operations as well as the decrease in volume of wholesale electricity sales outside the area.
Net sales increased to ¥633.5 billion, a year-on-year increase of ¥75.2 billion or 13.5%, mainly due to the electricity rates review for high-voltage or extra-high-voltage power customers in the liberalization section and increase in fuel cost adjustment charge.
Ordinary income was ¥113.0 billion, a year-on-year increase of ¥141.7 billion due to a significant increase in income resulting from time lag between fuel cost and fuel cost adjustment charges due to the decrease in fuel cost as well as an electricity rates review for high-voltage or extra-high-voltage power customers in the liberalization section.
Net income for the quarter attributable to owners of the parent was ¥79.1 billion, a year-on-year increase of ¥110.4 billion.
Thus, although income and expenditures have improved significantly, equity-ratio was 12.4%, a year-on-year increase of 1.9% mainly due to the high level of interest-bearing debt of ¥3,361.8 billion.
Consolidated cash income* for this period was ¥107.3 billion.
*We set consolidated cash income as a financial target in the Tohoku Electric Power Group's medium- to long- term vision "Working alongside next". (Target for 320 billion yen in FY 2024)
Consolidated cash income = Operating income + Depreciation + Amortization of nuclear fuel + Share of profit of entities accounted for using equity method (Operating income doesn't include time lag between fuel cost and fuel cost adjustment charges.)
1
Key points of financial results and forecasts
Financial Results for the first quarter of FY2023
（First time in 4 years since FY2019）
- Operating revenue : mainly due to revisions to electricity rates and increase in fuel cost adjustment charge
- Ordinary income : mainly due to increase in income from retail electricity sales thanks to revisions of electricity rates and the time lag between fuel cost and fuel cost adjustment charge
Financial and Dividend Forecasts for FY2023
- Increase in income from retail electricity sales thanks to revisions of electricity rates, even with decrease in income from wholesale electricity sales due to lower JEPX prices, etc.
- Increase in income from retail electricity sales thanks to revisions of electricity rates, thorough streamlining, and the time lag between fuel cost and fuel cost adjustment charge, etc.
Summary of Financial Results | 2 | |
Operating revenue | ¥633.5 billion (a year on year increase of ¥75.2 billion) | |
• Operating revenue increased mainly due to revisions to electricity rates and increase in | ||
fuel cost adjustment charge. | ||
Ordinary income/loss | ¥113.0 billion (a year on year increase of ¥141.7 billion) | |
• Ordinary income/loss increased mainly due to increase in income from retail |
electricity sales thanks to revisions of electricity rates, and the time lag between fuel cost and fuel cost adjustment charge thanks to decline of fuel prices.
Net Income Attributable to | ¥79.1 billion (a year on year increase of ¥110.4 billion) |
Owners of Parent | |
【Summary of Consolidated Financial Statements】
(billions of yen)
FY2022/1Q | FY2023/1Q | Change | Change | |||||||||
(A) | (B) | (B) - (A) | (B) / (A) | |||||||||
Operating Revenue | 558.2 | 633.5 | 75.2 | 113.5 | % | |||||||
Ordinary Income*1 | (28.6) | 113.0 | 141.7 | - | ||||||||
[ | 17.3 | ] | [ | 57.0 | ] | [ | 39.7 | ] | [ | 328.5 | %] | |
Net Income Attributable to | (31.2) | 79.1 | 110.4 | - | % | |||||||
Owners of Parent | ||||||||||||
Consolidated Cash Income*2 | 67.6 | 107.3 | 39.7 | 158.8 | % |
*1 Lower figures exclude time lag between fuel cost and fuel cost adjustment charges.
*2 Consolidate Cash Income = Operating income + Depreciation + Amortization of nuclear fuel + Share of profit of entities accounted for using equity method (Operating income doesn't include time lag between fuel cost and fuel cost adjustment charges.)
Changing Factors in Consolidated Ordinary Income | 3 |
from the Corresponding Period Last Year | |
- Consolidated ordinary income improved significantly to 113.0 billion yen, up 141.7 billion yen year on year, due to the revision of electricity rates and the time lag between fuel cost and fuel cost adjustment charge.
Increase of 141.7 Billion Yen（-28.6 → 113.0）
102.0
（billions of yen）
113.0
Time lag
Ordinary income excluding time lag between fuel cost and fuel cost adjustment charges
17.3
- Renewable energy grant 12.0
- Increased operation of Joetsu
Thermal Power Station 5.0 etc.
Others
Current period
56.0
Rebound
from
FY2022.1Q
46.0
between fuel cost and fuel cost adjustment charges
56.0
Ordinary income
excluding time
lag between fuel cost and fuel cost adjustment Charges
57.0
-28.6
Impact of exceeding | Revision of |
upper limit of fuel | electricity rate |
cost adjustment unit | |
price | 27.2 |
-15.0 | |
27.5 Impact of time lag between fuel cost and
fuel cost adjustment
charges
FY2022/1Q
Increase of 141.7 Billion Yen
Ordinary income excluding time lag between fuel cost and fuel cost
adjustment charges : increase of 39.7 billion yen
FY2023/1Q
Impact of Time Lag between Fuel Cost and Fuel Cost Adjustment Charges | 4 |
in the First Quarter of FY2023 |
- The impact of the time lag in the same period of the previous year was a loss of 46.0 billion yen, but this fiscal year there was a profit of 56.0 billion yen, resulting in an improvement in profitability of 102.0 billion yen.
- The fuel cost adjustment unit price of the low-voltage regulation rate menu exceeded the upper limit, and the uncollectible income for this term was 15.0 billion yen.
Profitability improved by about 102.0 billion yen
compared to the same period last year
Profit of 56.0 billion yen
Loss of 46.0 billion yenin FY2023/1Q in FY2022/1Q
Loss |
FY2022/1Q
Exceeding the upper limit of the fuel cost adjustment system :
15.0 billion yen
(Before the revised electricity
rate was implemented)
Average Fuel PricePrice of imported fuel
Profit |
Upper limit
FY2023/1Q
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Disclaimer
Tohoku Electric Power Co. Inc. published this content on 31 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 July 2023 07:16:59 UTC.
