TOHOKU ELECTRIC POWER CO., INC.
April 30, 2025
Financial Results for Fiscal Year ending March 31, 2025 (FY2024), and Financial and Dividend Forecasts for Fiscal Year ending March 31, 2026 (FY2025)
Tohoku Electric Power Co., Inc. released its financial results for FY2024 (April 1, 2024 through March 31, 2025), and financial and dividend forecasts for FY2025 (April 1, 2025 through March 31, 2026) today.
【Consolidated Financial Results for FY2024】
The result of FY2024 is as follows: Total sales electricity volume at our company reached 78.0 billion kWh (1.6% decrease compared to the previous year), despite an increase in wholesale electricity market transactions, offset by a decrease in retail sales due to contract switches driven by competition.
Operating revenue decreased to ¥2,644.9 billion, a year-on-year decrease of ¥172.9 billion or 6.1%, mainly due to a decrease in fuel cost adjustment amount due to lower fuel prices.
Ordinary income was ¥256.7 billion, a year-on-year decrease of ¥35.2 billion or 12.1%, mainly due to the time lag effect of the fuel cost adjustment system, despite an improvement in income and expenditure due to the restart of Onagawa Unit 2.
Net income attributable to owners of the parent was ¥182.8 billion, a year-on-year decrease of ¥43.2 billion or 19.1%.
【Financial Forecasts for FY2025】
In FY2025, competition is becoming fierce in the Tohoku area due to factors such as price settlements in the wholesale electricity trading market, and the impact of cost increases due to higher material and labor costs is also becoming apparent.
Also, the business environment surrounding our group continues to change at a faster pace than in the past, as the current tariff policy in the U.S. has increased uncertainty in foreign exchange and fuel prices, and uncertainty is increasing.
Considering this environment, operating revenue is expected to be ¥2,450 billion, which represents a "decrease in revenue" compared to the previous year.
Ordinary income is expected to decrease compared to the previous year, resulting in a profit of approximately
¥190 billion, mainly due to reduction of marginal gain caused by the time lag effect of the fuel cost adjustment system, increased interest payments, the impact of rising prices, and changes in the market and sales environment, despite increased operation of Onagawa Unit 2.
Net income attributable to owners of the parent is expected to be approximately ¥135 billion.
【Dividend Forecasts for FY2025】
We plan to set both interim and year-end dividends at "¥20 per share," based on the basic policy of providing stable dividends, taking into account the current fiscal year's performance, medium- to long-term income and expenditure outlook, and balancing the recovery of our financial base with a Dividend on Equity (DOE) ratio of 2% as a guideline.
For the overview of the financial results, financial forecasts, and dividend forecasts, see the attached sheets.
(Attach sheet 1) Digest of financial results & projected consolidated results
(Attach sheet 2) Summary of financial results for fiscal year ending March 31, 2025 (Japanese standard) (Consolidated)
Key points of financial results and forecasts Financial Results for FY2024Net sales decreased due to lower fuel prices, resulting in lower fuel
cost adjustments.
Ordinary income decreased due to the decrease in marginal gain impacted by the time lag effect of the fuel cost adjustment system.
Decreased due to lower fuel prices, resulting in lower fuel cost adjustments.
Decreased due to the decrease in marginal gain impacted by the time lag effect of the fuel cost adjustment system, increase in operation of Onagawa Unit 2, increase in interest payments, impact of price hikes, and changes in market and sales environment, etc.
Summary of Financial Results
Operating revenue
Ordinary income/loss
¥2,644.9 billion (a year on year decrease of ¥172.9 billion)
Decrease in fuel cost adjustment due to lower fuel prices
¥256.7 billion (a year on year decrease of ¥35.2 billion)
Decrease due to the time lag effect of the fuel cost adjustment system
Net Income Attributable to Owners of Parent
¥182.8 billion (a year on year decrease of ¥43.2 billion)
1C Summary of Consolidated Financial Statements )
(billions of yen)
FY2023 (A) | FY2024 (B) | Change (B)- (A) | Change (B) / (A) | |
Operating Revenue | 2,817.8 | 2,644.9 | (172.9) | 93.9 % |
Ordinary Income*1 | 291.9 [197.9] | 256.7 [234.7] | (35.2) [36.7] | 87.9 % [118.6 %] |
Net Income Attributable to Owners of Parent | 226.1 | 182.8 | (43.2) | 80.9 % |
Consolidated Cash Income*2 | 420.3 | 470.5 | 50.1 | 111.9 % |
Mar. 31, 2024 (A) | Mar. 31, 2025 (B) | Change (B) - (A) | |
Equity ratio (After taking into account hybrid bonds*3) | 15.4% (18.0%) | 18.3% (20.8%) | 2.9% (2.8%) |
Interest-Bearing Liabilities | 3,290.9 | 3,336.9 | 45.9 |
*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.)
*3 Equity ratio assuming 50% of the issued amount (140 billion yen) of the issued hybrid bonds as equity capital
Changing Factors in Consolidated Ordinary Income Compared with FY2023
2
Despite an improvement in income and expenditure due to the restart of Onagawa Unit 2, income decreased due to a decrease in marginal gain caused by the time lag in fuel procurement.
Consolidated ordinary income decreased by 35.2 billion yen from the previous year to 256.7 billion yen. (Excluding time lag effects, consolidated ordinary income increased by 36.7 billion yen to 234.7 billion yen.)
291.9
(billions of yen)
94.0*1
Impact of time lag between fuel cost and fuel cost adjustment charge (Decrease in marginal gain
(72.0
Effect of Onagawa Unit 2 restart
Elimination of excess of fuel cost adjustment unit price limit
Others
39.5
256.7
22.0*1
FY2024 22.0
FY2023 94.0
Network
(43.7
(Decrease in fuel costs.)
26.0
15.0
197.9*2 234.7*2
*1 Time lag between fuel cost and fuel cost adjustment charges
*2 Ordinary income/loss excluding time lag between fuel cost and fuel cost adjustment charges
FY2024
FY2023
Decrease of 35.2 Billion Yen
Ordinary income excluding time lag between fuel cost and fuel cost adjustment charges : increase of 36.7 billion yen