Key Point of President's Regular Press Conference
Key Point of President's Regular Press Conference
Regular Press Conference for October 2011
October 28, 2011
Chubu Electric Power Co.,Inc.
- Today, I will be discussing the following two matters:
- Chubu Electric Power's second quarter financial results for FY2011
- Start of commercial operation of Mega Solar Taketoyo
FY2011 second quarter financial results
- First, I would like to talk about Chubu Electric Power's second quarter financial results for FY2011.
(Summary of financial results)
- Regarding our consolidated sales, a decline in electricity sales and other such factors have caused sales in the electric power business to diminish. Sales in other businesses increased, however, so that we recorded an increase in revenue.
- Meanwhile, our consolidated ordinary income was affected by various factors, including the reduction in the amount of nuclear power generated due to the shutdown of all units of Hamaoka Nuclear Power Station. As a result, our second quarter financial results for the first time showed an ordinary loss and a net loss for the quarter.
- Regarding the consolidated financial results for the second quarter, please see Reference 1, "FY2011 Second Quarter Financial Results."
- Here are some highlights:
Sales increased by 1.6 billion yen year on year to 1.1592 trillion yen.
Operating income declined by 137.1 billion yen year on year to 8.1 billion yen.
Ordinary income declined by 134.5 billion yen year on year for a loss of 6.1 billion yen.
Net income for the quarter declined by 93.2 billion yen year on year for a loss of 19 billion yen.
Our financial results for the second quarter thus showed, for the first time,an ordinary loss and a net loss for the quarter.
- Next, for Chubu Electric Power's non-consolidated financial results:
Sales declined 2.8 billion yen year on year to 1.0905 trillion yen.
Operating income declined by 138 billion yen year on year to 1.7 billion yen.
Ordinary income declined by 133 billion yen year on year for a loss of 10.9 billion yen.
Net income for the quarter declined by 92 billion yen year on year for a loss of 22.2 billion yen.
Our financial results for the second quarter thus showed an ordinary loss and a net loss for the quarter for the first time since the company was founded in 1951.
- As regards return to shareholders, the shutdown of all units at the Hamaoka Nuclear Power Station means that the impact on the bottom line appears likely to be fairly severe in the short term. However, we are pursuing still further efficiency improvements in order to respond to our shareholders' expectations in a stable manner, and we will endeavor to maintain dividends at the current annual level of 60 yen per share.
- In line with the above approach, the interim dividend for this period has been set at 30 yen per share.
(Cash flow outlook for FY2011)
- Next is our outlook for the entire year.
- Results for the year will be affected by various factors, such as the shutdown of all units at the Hamaoka Nuclear Power Station, resulting in an increase in fuel costs. The consolidated financial results are therefore expected to show an operating loss of 130 billion yen and an ordinary loss of 155 billion yen.
- This will be the first time we have an operating loss and ordinary loss since we started consolidated financial results in 1994.
- The non-consolidated financial results are expected to show an operating loss of 145 billion yen and an ordinary loss of 170 billion yen.
- The operating loss will be our first since the company was founded in 1951. The ordinary loss will be our first in 32 years, since 1979.
- The settlement payment from the court case over the Hamaoka No. 5 Reactor turbines will be recorded under extraordinary income.
- As a result, we are revising the performance forecast filed on October 4, 2011, for this period's net income, and we anticipate that the consolidated financial results will show a net loss of 110 billion yen for the period.
- Given the harsh business environment faced by Chubu Electric Power, we intend to continue engaging the entire company in the pursuit of efficient management and overcome these difficulties.
Regarding the Start of Commercial Operation of Mega Solar Taketoyo
- Next I would like to discuss the start of commercial operation of Mega Solar Taketoyo. If you could please look at Reference 3.
- Chubu Electric Power Company has set October 31 as the date for starting commercial operation of Mega Solar Taketoyo, which we have been building on the grounds of the Taketoyo Thermal Power Station in Taketoyo-cho, Chita-gun, Aichi Prefecture.
- Mega Solar Taketoyo is the second solar power facility this company will operate as a business. It follows after Mega Solar Iida, which started commercial operation in January of this year.
- The capacity of this facility is 7.5 MW, and the annual power production will be the equivalent of the annual power consumption of 2,000 ordinary households. The size of the CO2 reduction achieved by the facility is anticipated to reach approximately 3,400 tons per year.
- Mega Solar Taketoyo is equipped with an observation platform and other facilities that provide a panoramic view of the entire facility. We will engage in activities for widespread adoption and heightened consciousness of sustainable energy by means of study tours of this power facility.
- On the day operation commences, we plan to have an inaugural ceremony with the Taketoyo-cho mayor in attendance. Later, we will be distributing invitations for that day's inaugural ceremony and tour of the power facility to Electric Power Study Group members. I do hope that you will take part.
- Chubu Electric Power will continue to actively pursue the adoption of energy sources that emit less CO2. Our efforts to this end include our planning of Mega Solar Shimizu, which is slated to enter commercial operation in FY2014, and our participation in examining the feasibility of constructing the country's largest solar and wind power facility in Tahara City.
- This concludes my remarks for today.