Key Point of President's Regular Press Conference
Press Conference on the FY2011 Financial Results
April 27, 2012
Chubu Electric Power Co.,Inc.
First, I will be discussing
・Chubu Electric's financial results for FY2011.
(Summary of financial results)
- Today I will be discussing Chubu Electric’s financial results for FY2011.
- Looking at consolidated sales, while the volume of power sold declined in our electricity business, we recorded a 118.3 billion yen increase in revenue, reaching sales of 2,449.2 billion yen, due to factors including an increase in service charges resulting from increased fuel procurement costs.
- Turning to consolidated ordinary income, we recorded a loss of 67.8 billion yen, due to factors including a decline in nuclear power output with the shutdown of all units of the Hamaoka Nuclear Power Station.
- This represents the company’s first loss in consolidated ordinary income since we commenced consolidated accounting in 1994.
- Next, for Chubu Electric's non-consolidated financial results.
Operating revenue: 116.8 billion yen increase YoY for a 2,295.1 billion yen gain
Operating income: 208.3 billion yen decline YoY for a 50.4 billion yen loss
Ordinary income: 208.4 billion yen decline YoY for a 77.4 billion yen loss
Net income: 170.4 billion yen decline YoY for a 94.6 billion yen loss
- This will represent our first non-consolidated operating loss since the foundation of the company in 1951, and only our second non-consolidated ordinary loss since 1979, comprising a period of 32 years.
- As per our Policy on the Shareholder Return, we will work to maintain the level of dividends at 60 yen per annum per share. This will enable us to respond to shareholder expectations, while continuing to conduct investments for building and operating facilities that are essential to a stable supply of electricity.
- While we recorded a significant net loss for the period due to factors including increased fuel costs resulting from the shutdown of all units of Hamaoka Nuclear Power Station, based on our previously announced policy we intend to pay a year-end dividend of 30 yen per share, equivalent to our mid-term dividend.
(Cash flow outlook for FY2012)
- Seeking to increase the safety of Hamaoka Nuclear Power Station, at present we are making steady progress with the installation of the anti-tsunami measures that we announced last year, aiming towards their completion in December this year.
- At the same time, we are making concerted efforts to explain the concept behind our anti-tsunami measures and the details of the project, to ensure that we have the full understanding of everyone affected, in particular the people in the local community.
- At present, it is not possible to make any projections concerning nuclear power stations operated by other companies.
- We are therefore not able at this stage to make projections for the future, including regarding supply and demand trends, and the situation is such that we cannot rationally forecast results based on specific fixed assumptions. Given this, with regard to projected results for FY2012, we must say that sales figures and potential profits remain unclear.
- We will make further announcements in future as soon as we are vzable to forecast results.
- Continuing on from last fiscal year, we predict that our financial status will remain severe in FY2012 as a result of the shutdown of Hamaoka Nuclear Power Station.
- We will work to confront this difficult situation, seeking to realize thorough cost reductions by continuing in the efforts to increase management efficiency that we commenced last fiscal year.
- That is all for me.