Press Release
FY2021 Third Quarter Financial Results
January 31, 2022
Tokyo Electric Power Company Holdings, Inc.
Today, Tokyo Electric Power Company Holdings, Inc. (TEPCO HD) released its consolidated financial results for the third quarter of FY2021 (April 1~December 31, 2021).
Despite the entire Group's continual efforts to improve income and expenditure, consolidated ordinary income decreased year-on-year (YoY) by 163.3 billion yen to 72.2 billion yen due to worsening of the impact for JERA from the time lag inherent to the fuel adjustment system and a decrease in retail power sales volume.
Furthermore, even though 29.8 billion yen of subsidies from the Nuclear Damage Compensation and Decommissioning Facilitation Corporation was appropriated as extraordinary income, quarterly net income attributable to owners of the parent was 9.8 billion yen due to the posting of 66.3 billion yen of nuclear damage compensation and 16.3 billion yen of loss on the return of imbalance income and expenditure,* as extraordinary loss.
[Ordinary income/loss of core companies]
The ordinary income/loss of each core company during FY2021Q3 was as follows:
- Ordinary income for TEPCO HD increased by 64.9 billion yen YoY to 72.0 billion yen due to an increase in received dividends from core companies.
- Ordinary income for TEPCO Fuel & Power, Inc. decreased by 92.7 billion yen YoY and resulted in a loss of 9.3 billion yen due to worsening of the impact for JERA of the time-lag inherent to the fuel cost adjustment system.
- Ordinary income for TEPCO Power Grid Inc. decreased by 20.0 billion yen YoY to 163.5 billion yen due to an increase in facility-related expenses.
- Ordinary income for TEPCO Energy Partner, Inc. decreased by 50.3 billion yen YoY and resulted in a loss of 42.3 billion yen due to a decrease in retail power sales volume caused by increased competition and the impact of daily temperatures.
- Ordinary income for TEPCO Renewable Power Inc. decreased by 3.6 billion yen YoY to 40.5 billion yen due to an increase in fixed asset taxes.
[FY2021 Performance Forecast] (The forecast announced on October 27 2021 has been revised as follows)
Our FY2021 Performance Forecast anticipates an increase in wholesale power sales volume, so operating revenue is expected to increase by 201 billion yen to 5.051 trillion yen compared to the performance forecast announced on October 27, 2021.
Ordinary loss is expected to increase by 3 billion yen to 16 billion yen compared to the October 27, 2021 forecast due to an increase in electricity procurement costs by TEPCO Energy Partner in conjunction with soaring fuel prices.
16.3 billion yen of loss is expected as extraordinary income/loss due to the posting of loss on the return of imbalance income and expenditure, and net income attributable to owners of parent is forecasted to decrease by 25 billion yen to result in a loss of 41billion yen.
*As extraordinary measures implemented in accordance with our application for approval of special measures (measures stipulated in the proviso to Article 18, paragraph (2) of the Electricity Business Act) submitted in light of discussions and conclusions reached by the Electricity and Gas Basic Policy Subcommittee of the Electricity and Gas Industry Committee of the Advisory Committee for Natural Resources and Energy, an adjustment shall be made in the form of subtracting a portion of the imbalance fees from January 2021 paid by retail power suppliers that exceeds a certain amount, from consigned transmission fees after April 2022. Therefore, the forecasted adjustment amount of 16.3 billion yen has been posted as extraordinary loss.
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