Key Point of President's Regular Press Conference
Key Point of President's Regular Press Conference
Senior Managing Executive Officer Mizutani’s message at the news conference announcing financial results for Q3 2020
January 29, 2021
Chubu Electric Power Co.,Inc.
- I will be discussing the following matters today:
- Financial results for the third quarter of fiscal 2020
Financial results for the third quarter of fiscal 2020
- In the third quarter of FY2020, Chubu Electric Power’s operating revenues totaled 2,112.5 billion yen, a decline of 168.1 billion yen year-on-year mainly due to the effects of COVID-19 and other factors driving electric energy sales down as well as a decrease in the fuel cost adjustment charge.
- Our ordinary income for the quarter was 191.4 billion yen. This represents an income increase of 26.1 billion yen year-on-year thanks to an increase in time lag income which rose to approximately 29 billion yen and efforts to reduce power procurement costs, despite reduced electric energy sales and other COVID-19 effects that have curtailed profits by around 27 billion yen.
- Since it is difficult to delineate the impact of COVID-19, the drop in electricity demand, less the decline attributable to other factors such as temperatures and market competition, is assumed to be the COVID-19 impact.
- In addition, consolidated ordinary income excluding the effect of time lag was 125 billion yen, a decrease of around 30 billion yen year-on-year.
- Next, I would like to discuss our business forecast for FY2020.
- There is no change in our business outlook for fiscal 2020, as we expect approximately the same results as those announced previously on October 30.
- Although the declaration of a state of emergency has caused concern about how it may affect power demand, COVID-19-induced changes in social structures and other factors have cast a shadow of uncertainty over future economic outlook. However, considering our third quarter performance as well as information from our customers, we anticipate a 2% decrease year-on-year as we previously reported.
- We forecast consolidated operating revenue of 2.8 trillion yen and consolidated ordinary income of 145 billion yen.
- We also project income of around 110 billion yen, which does not include time lag gain.
- Since the holiday season, electric power supply and demand has been tight throughout Japan and market prices have continued to surge. The Chubu Electric Power Group is committed to doing everything we can to maintain a stable supply, and these effects are not reflected in our current forecast. We will continue to closely monitor electric power supply and demand as well as market prices.
- Although the impact of COVID-19 is still unclear and we continue to face tough market competition, the Chubu Electric Power Group will strive to transform our business model to create new value by further accelerating our initiatives in light of changes in social structures. We will maximize values we provide to our customers and society, and continue to endeavor to increase business income.
- This ends my presentation.