TOHOKU ELECTRIC POWER CO., INC.
October 31, 2024
Financial Results for the Second Quarter of Fiscal Year ending March 31, 2025 (FY2024)
Tohoku Electric Power Co., Inc. released its financial results for the second quarter of FY2024 (April 1, 2024 through September 30, 2024) today.
【Consolidated Financial Results】
The result of the second quarter is as follows: Total sales electricity volume at our company reached 38.2 billion kWh (2.1% increase compared to the same period last year), despite a decrease in retail sales due to contract switches driven by competition, offset by an increase in wholesale electricity market transactions.
Net sales decreased to ¥1,311.5 billion, a year-on-year decrease of ¥76.2 billion or 5.5%, mainly due to decrease in fuel cost adjustment amount due to lower fuel prices.
Ordinary income was ¥153.3 billion, a year-on-year decrease of ¥65.8 billion or 30.0%, mainly due to the time lag effect of the fuel cost adjustment system, despite the impact of improved earnings due to the elimination of the excess over the ceiling of the fuel cost adjustment unit price.
Net income for the quarter attributable to owners of the parent was ¥106.0 billion, a year-on-year decrease of ¥49.3 billion or 31.8%.
The financial forecast for FY2024 remains unchanged from that announced in April 2024.
For the overview of the financial results, see the attached sheet.
(Attach sheet 1) Digest of financial results & projected consolidated results
(Attach sheet 2) Summary of financial results for the second quarter of fiscal year ending March 31, 2025 (Japanese standard) (Consolidated)
Key Points of Financial Results and Forecasts
Financial Results for the second quarter of FY2024
- Operating revenue : mainly due to decrease in fuel cost adjustment charge by lower fuel price
- Ordinary income : mainly due to decrease in income by the time lag between fuel cost and fuel cost adjustment charge
Financial and Dividend Forecasts for FY2024
Summary of Financial Results | 1 | |
➢ Operating revenue | ¥1,311.5 billion (a year on year decrease of ¥76.2 billion) |
- Operating revenue decreased mainly due to decrease in fuel cost adjustment charge by lower fuel price.
- Ordinary income/loss ¥153.3 billion (a year on year decrease of ¥65.8 billion)
- Ordinary income decreased mainly due to decrease in income by the time lag between fuel cost and fuel cost adjustment charge.
➢ Net Income Attributable | ¥106.0 billion (a year on year decrease of ¥49.3 billion) |
to Owners of Parent | |
【Summary of Consolidated Financial Statements】
(billions of yen)
FY2023/2Q | FY2024/2Q | Change | Change | |||||
(A) | (B) | (B) - (A) | (B) / (A) | |||||
Operating Revenue | 1,387.8 | 1,311.5 | (76.2) | 94.5 | % | |||
Ordinary Income*1 | 219.1 | 153.3 | (65.8) | 70.0 | % | |||
[124.1] | [145.3] | [21.1] | [117.1 %] | |||||
Net Income Attributable to | 155.3 | 106.0 | (49.3) | 68.2 | % | |||
Owners of Parent | ||||||||
Consolidated Cash Income*2 | 228.8 | 257.7 | 28.9 | 112.7 | % | |||
Mar. 31, 2024 | Sep. 30, 2024 | Change | ||||||
(A) | (B) | (B) - (A) | ||||||
Equity ratio | 15.4% | 17.4% | 2.0% | |||||
[18.0%]*3 | [20.0%]*3 | [2.0%] | ||||||
Interest-Bearing Liabilities | 3,290.9 | 3,270.3 | (20.5) | |||||
*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 | 2 |
from the Corresponding Period Last Year |
- Ordinary income decreased due to the impact of the time lag in the fuel cost adjustment system, regardless of the reactionary increase of excess of upper unit price of fuel cost adjustment system.
- Consolidated ordinary income was 153.3 billion yen, decrease of 65.8 billion yen year on year (excluding time lag between fuel cost and fuel cost adjustment charges: 145.3 billion yen, increase of 21.1 billion yen).
Decrease of 65.8 Billion Yen（219.1→153.3）
(billions of yen)
219.1
Time lag
between fuel cost and fuel cost adjustment charges
95.0
Ordinary
income
excluding time
lag between fuel cost and fuel cost adjustment Charges
124.1
Impact of time lag
between fuel cost and fuel cost adjustment charges
（87.0)
FY2023/2Q +95.0 FY2024/2Q +8.0
Time lag between fuel | |||
cost and fuel cost | |||
Others | adjustment charges | ||
Reactionary increase of | 153.3 | ||
fuel cost adjustment | 6.2 | ||
exceeding upper limit of | |||
unit price | |||
15.0 | 8.0 | ||
Ordinary
income
excluding time
lag between fuel cost and fuel cost adjustment Charges
145.3
FY2023/2Q
Decrease of 65.8 Billion Yen
FY2024/2Q
Ordinary income excluding time lag between fuel cost and fuel
cost adjustment charges : increase of 21.1 billion yen
Impact of Time Lag between Fuel Cost and Fuel Cost Adjustment Charges | 3 |
in the Second Quarter of FY2024 |
- "The impact of the time lag"in the same period of the previous year was a profit of 95.0 billion yen, but this fiscal year there was a profit of 8.0 billion yen, resulting in an deterioration in profitability of 87.0 billion yen.
- With regard to "The Impact of exceeding upper limit of fuel cost adjustment unit price ", the fuel cost adjustment unit price of the low-voltage regulation rate menu exceeded the upper limit until the upper limit of fuel cost adjustment unit price is revised in the electricity rate revision on June 1, 2023, and the uncollectible income for this term was 15.0 billion yen. In current term, due to the resolution of such circumstances, there has been an improvement of 15 billion yen in income and expenditure compared to the same period last year.
Profitability deteriorated by about 87.0 billion yen
compared to the same period last year
Profit of 95.0 billion yen | Profit of 8.0 billion yen |
in FY2023/2Q | in FY2024/2Q |
Average Fuel Price (Revenue) | |
(Reflected in electricity price as | |
Profit | fuel cost adjustment unit price) |
Price of imported fuel (Cost)
Exceeding the upper limit | |||||||||||||||||
of the fuel cost adjustment | Profit | ||||||||||||||||
system : 15.0 billion yen | |||||||||||||||||
Apr. | May. | Jun. | Jul. | Aug. | Sep. | Oct. | Nov. | Dec. | Jan. | Feb. | Mar. | Apr. | May. | Jun. | Jul. | Aug. | Sep. |
＜FY2023＞ | ＜FY2024＞ |
Electricity Sales, Major Factors, Sensitivity to Major Factors | 4 | ||||||||||
➢Retail electricity sales | 29.2 TWh (a year on year decrease 1.9 TWh) | ||||||||||
・・・Retail electricity sales decreased due to the decrease in cooling demand and the | |||||||||||
increase of customers switching to competitors due to increased competition, etc. | |||||||||||
➢Wholesale electricity sales | 9.0 TWh (a year on year increase 2.7 TWh) | ||||||||||
・・・Wholesale electricity sales volume increased due to a increase in volume of | |||||||||||
wholesale electricity sales in the wholesale electricity trading market. | |||||||||||
(GWh) | |||||||||||
Electricity Sales*1 | FY2023/2Q | FY2024/2Q | Change | Change | |||||||
(A) | (B) | (B) - (A) | (B) / (A) | ||||||||
Lighting (Residential) | 8,725 | 8,373 | (352) | 96.0 % | |||||||
Power | 22,386 | 20,790 | (1,596) | 92.9 % | |||||||
Retail Electricity Sales*2 | 31,111 | 29,163 | (1,948) | 93.7 % | |||||||
Wholesale Electricity Sales*3 | 6,274 | 9,020 | 2,746 | 143.8 % | |||||||
Total of Electricity Sales | 37,385 | 38,184 | 799 | 102.1 % | |||||||
*1 Individual figures of Tohoku Electric Power Co., Inc., excluding network business. *2 Retail Electricity Sales includes electric power for business use.
*3 Wholesale Electricity Sales includes the volume of specified power interchange.
（billions of yen）
Major Factors | FY2023/2Q | FY2024/2Q | Change |
(A) | (B) | (B) - (A) | |
Crude Oil CIF Price ($/bbl.) | 83.6 | 86.7 | 3.1 |
Exchange Rate (¥/$) | 141 | 153 | 12 |
Hydro Power Flow Rate (%) | 80.4 | 82.5 | 2.1 |
Nuclear Power Utilization Rate(%) | - | - | - |
Sensitivity to Major Factors | FY2023/2Q | FY2024/2Q | Change |
(A) | (B) | (B) - (A) | |
Crude Oil CIF Price ($/bbl.) | 1.5 | 1.1 | (0.4) |
Exchange Rate (¥/$) | 2.0 | 1.6 | (0.4) |
Hydro Power Flow Rate (%) | 1.0 | 0.8 | (0.2) |
Segment Information (Consolidated) | 5 | ||||||||||
(billions of yen) | |||||||||||
FY2023/2Q(A) | FY2024/2Q(B) | Change (B) - (A) | Major factors for change | ||||||||
Operating | Ordinary | Operating | Ordinary | Operating | Ordinary | ||||||
Revenue* | Income | Revenue* | Income | Revenue* | Income | ||||||
Power | 1,139.6 | 1,034.4 | (105.2) | • | Sales decreased due to a decrease in fuel cost | ||||||
Generation | 186.0 | 149.6 | (36.4) | adjustments by the lower fuel price, etc. | |||||||
1,084.9 | 984.1 | (100.8) | • | Profit decreased due to the impact of time lag | |||||||
and Sales | in the fuel cost adjustment system, etc. | ||||||||||
412.4 | 416.9 | 4.4 | • | Increased income due to a increased | |||||||
renewable energy electricity wholesale supply, | |||||||||||
Network | 36.7 | 17.4 | (19.3) | etc. | |||||||
181.9 | 202.9 | 21.0 | • | Decreased profit due to a increased | |||||||
procurement costs in demand and supply | |||||||||||
adjustment market transactions. | |||||||||||
Construction | 127.2 | 0.9 | 132.1 | 2.9 | 4.9 | 2.0 | • | Both sales and income increased due to an | |||
66.3 | 68.2 | 1.9 | increase in civil engineering work. | ||||||||
Others | 113.0 | 8.6 | 112.1 | 7.3 | (0.9) | (1.2) | • | Sales and profits decreased due to the down | |||
54.6 | 56.2 | 1.6 | of the unit price in the gas business, etc. | ||||||||
Subtotal | 1,792.4 | 232.3 | 1,695.7 | 177.3 | (96.6) | (54.9) | |||||
Adjustment | (404.5) | (13.1) | (384.1) | (23.9) | 20.4 | (10.8) | |||||
Total | 1,387.8 | 219.1 | 1,311.5 | 153.3 | (76.2) | (65.8) | |||||
* Lower figures of operating revenue are sales to outside customers. | |||||||||||
Changing Factors in Consolidated Ordinary Income | |||||||||||
Ordinary income | Power Generation | |
excluding time lag of | and Sales | Network |
fuel cost adjustment | △36.4 | |
system 124.1 | △19.3 | |
Ordinary | ||
Income |
219.1
Construction Others Adjustment
2.0 △1.2 △10.8
Increase of civil | Adjustment of | |
engineering work, etc. | dividends received, etc. | |
Ordinary income excluding time lag of fuel cost adjustment system 145.3
Ordinary
Income
153.3
FY2023/2Q
65.8 billion Yen increase
(Increase of 21.1 billion Yen excluding the impact of time lag)
FY2024/2Q
Balance Sheets (Consolidated) | 6 | |||||
(billions of yen) | ||||||
Mar. 31, 2024 | Sep. 30, 2024 | Change | Major factors for change | |||
(A) | (B) | (B) - (A) | ||||
Total Assets | 5,388.7 | 5,305.0 | (83.7) | |||
Non-current | 4,186.3 | 4,175.0 | (11.3) | |||
Assets | ||||||
Current Assets | 1,202.3 | 1,129.9 | (72.4) | Cash and deposit (95.8), etc. | ||
Total Liabilities | 4,477.6 | 4,299.2 | (178.4) | |||
Non-current | 3,319.9 | 3,215.0 | (104.8) | |||
Liabilities | ||||||
Current | 1,157.7 | 1,084.1 | (73.5) | Accounts payable and accrued expenses | ||
Liabilities | (116.3), etc. | |||||
Net Assets | 911.0 | 1,005.7 | 94.7 | Net income attributable to owners of | ||
parent 106.0, etc. | ||||||
Interest-Bearing | 3,290.9 | 3,270.3 | (20.5) | Loans (34.6), Bonds 23.0, etc. | ||
Liabilities | ||||||
Equity Ratio | 15.4% | 17.4% | 2.0% | |||
[18.0%*] | [20.0%*] | [2.0%] | ||||
*Equity ratio assuming 50% of the issued amount (140 billion yen) of the issued hybrid bonds as equity capital
Trends in profit levels and financial position | 7 | |||||||
Changes in consolidated profit level | Ordinary Income | 291.9 | ||||||
(billions of yen) | ||||||||
Net Income Attributable to Owners of Parent | ||||||||
190.0 | ||||||||
152.6 | 226.1 | |||||||
116.6 | 104.7 | |||||||
88.4 | 99.9 | |||||||
80.2 | ||||||||
97.3 | 65.7 | 67.5 | ||||||
130.0 | ||||||||
43.2 | 39.0 | |||||||
76.4 | 69.9 | 63.0 | ||||||
47.2 | 46.4 | |||||||
25.8 | 34.3 | 29.3 |
(33.7) | (93.2) | |
(49.2) | ||
(103.6) | ||
(176.4) | (108.3) | (127.5) |
(231.9) | (199.2) | |
Changes in consolidated financial position
(billions of yen, %)
Interest-Bearing Liabilities | 3,375 | 3,390 | |||
Equity | 3,290 | ||||
Approx. | |||||
Equity ratio |
2,714 | 2,763 | 2,561 | 2,760 | |||||||||
2,446 | 2,471 | 2,435 | 2,424 | 2,381 | 2,412 | 2,433 | ||||||
2,048 | 2,051 | |||||||||||
22.8 | 16.8 | 17.3 | 17.9 | 18.3 | 18.5 | |||||||
14.6 | 15.2 | 14.8 | ||||||||||
20.5 | 13.9 | 12.6 | ||||||||||
11.3 | ||||||||||||
892 | 827 | 730 | 762 | 791 | 826 | 699 | ||||||
694 | ||||||||||||
584 | 535 | 601 | 629 | |||||||||
483 | ||||||||||||
18.0 | 19.5 | |
Approx. | ||
13.2 | 17.0 | |
15.4 | ||
Approx. | ||
10.5 | 827 | 940 |
Approx. | ||
548 | ||
FY 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
(Forecast)
Note : Green line shows equity ratio assuming 50% of the issued amount (140.0 billion yen) of the issued hybrid bonds as equity capital
Reference:FY2024 Consolidated Interest-Bearing Liabilities (average of opening and closing period) /Consolidated cash income ratio is expected to be approximately 7.6 times.
Financial and Dividend Forecasts for FY2024 | 8 |
- Financial and dividend forecasts for FY2024 are same as announced on April 30th , 2024. （Major Factors and Sensitivity remains unchanged as well.)
- Consolidated Financial Forecasts for FY2024
- billions of yen ）
FY2023 | FY2024 forecast | Change | ||
(A) | (B) | （B）－（A） | ||
Operating Revenue | 2,817.8 | 2,830.0 | 12.2 | |
Operating Income | 322.2 | 220.0 | (102.2) | |
Ordinary Income | 291.9 | 190.0 | (101.9) | |
［197.9］ | ［200.0］ | ［2.1］ | ||
Net Income Attributable | 226.1 | 130.0 | (96.1) | |
to Owners of Parent | ||||
Consolidated Cash Income | 420.3 | 440.0 | 19.7 | |
- [ ] : Ordinary income excluding time lag between fuel cost and fuel cost adjustment charges
■ Major Factors | （ billions of yen ） |
■ Sensitivity to Major Factors | |
FY2023 | FY2024 forecast | ||
Electric power sales* | Retail | 641 | Approx. 613 |
Wholesale | 151 | Approx. 214 | |
（TWh） | |||
Total | 792 | Approx. 827 | |
Crude Oil CIF Price ($/bbl.) | 86 | Approx. 90 | |
Exchange Rate (¥/$) | 145 | Approx. 150 | |
Nuclear Power Utilization Rate (%) | － | Approx. 14.8 |
* Individual figures of Tohoku Electric Power Co., Inc., excluding network business
Crude Oil CIF Price (per $1/bbl.) | Approx. 2.3 |
Exchange Rate (per ¥1/$) | Approx. 3.7 |
Nuclear Power Utilization | Approx. 2.8 |
Rate (1%) | |
- Forecast of Dividend Per Share
Interim | Year-end | Total | ||
FY2023 | 5 | Yen | 10 Yen | 15 Yen |
FY2024 | 15 | Yen | (15 Yen) | (30 Yen) |
- ( ) :Forecasts