Key Point of President's Regular Press Conference
Key Point of President's Regular Press Conference
January 2015 Regular Press Conference : President Mizuno's Message
January 30, 2015
Chubu Electric Power Co.,Inc.
- Today I will be discussing the following four matters:
- FY 2014 Third-quarter Financial Results
- FY 2014 year-end dividend forecast
- Selection of the successful bidder for the FY2014 thermal power bid
- Implementation of Hamaoka Nuclear Power Station emergency response drills
FY2014 Third-quarter Financial Results
- Looking at consolidated net sales, while the volume of power sold declined in our electricity business, we recorded a 205.1 billion yen increase in revenue against the same quarter last fiscal year, reaching sales of 2,258.9 billion yen, due to factors including an increase in lighting power charges resulting from increased fuel cost adjustments and electricity rates, as well as increased energy business sales in other areas.
- In the area of consolidated ordinary profit (loss), while fuel cost increased due to a rise in fuel prices, factors including increased electricity rates and fuel cost adjustments saw an increase on our results, an ordinary income of 20.1 billion yen, an increase of 66.8 billion yen against the same quarter last fiscal year.
- Next, for Chubu Electric's non-consolidated financial statement.
Net sales increased 202.3 billion yen year on year to 2,120.6 billion yen.
Operating income increased 87.1 billion yen year on year for a profit of 50.5 billion yen.
Ordinary income increased 62.6 billion yen year on year for a profit of 6.2 billion yen.
Net income for the quarter increased 54.5 billion yen year on year for a profit of 19.3 billion yen.
(Earnings outlook for FY2014)
- Next, for our earnings outlook for FY2014.
- The forecasted earnings values announced on October 31 last year have been corrected to reflect the latest performance trends.
- Looking at consolidated net sales, while the volume of power sold has declined, we expect sales to reach close to the previously announced 3,120 billion yen, due to factors such as an increase in supportive supply to other companies and a sales increase to Japan Electric Power Exchange.
- In the area of consolidated ordinary profit, we expect an increase of 10 billion yen, reaching an income of 40 billion yen, due to factors such as a decrease in fuel cost associated with the increased running of the Hekinan Thermal Power Plant and an increase in hydroelectric power generation.
- With regard to consolidated net profit, we expect a decrease of approximately 10 billion yen from the figure previously announced, resulting in a value of 28 billion yen, due to a reduction of deferred tax assets associated with a corporate tax rate reduction.
FY2014 year-end dividend forecast
- Next, for our dividend forecast.
- With regard to FY2014, together with implementing rate revisions, a company-wide effort is being made against each and every business and expenditure to achieve management efficiency.
- With these efforts for management efficiency almost in sight and the prospects for achieving profitability for the first time in four years looking bright, we have decided on 10 yen per share for the year-end dividend which has remained undecided thus far, under the assumption that we will continue to spare no effort in exercising maximum management efficiency.
- In addition to continuously working toward management efficiency, we will make efforts to gain the trust of and meet the expectations of our customers, shareholders, and society.
- That is all I have to say regarding finances.
Selection of the successful bidder for the FY2014 thermal power bid
- Next, I would like to discuss the Selection of the successful bidder for the FY2014 thermal power bid.
- Regarding the FY2014 thermal power bid conducted last November, as previously announced, Chubu Electric Power has been selected as the successful bidder upon acknowledgement by a neutral institution.
- The thermal power bid is a mechanism to implement competitive bidding based on national guidelines, for the purpose for reducing power generation cost when newly constructing, expanding, or replacing thermal power facilities of general electric utilities, including Chubu Electric Power. This bid is a result of moving forward with procedures properly in accordance with these guidelines.
- We plan on publishing development plans once again, following adjustment with relevant institutions, such as preparing development proposals to local communities.
- We would like to steadily move forward with the replacement plans for Taketoyo Thermal Power Plant with the understanding and cooperation from residents in local communities and various relevant parties.
Implementation of emergency response drills
- Last, I would like to talk about the “Hamaoka Nuclear Power Station emergency response drills” to be held on February 25.
- This training will be conducted at Hamaoka Nuclear Power Station Unit 4, under the assumption of lost reactor cooling function. Training will be performed to prevent core damage and damage to containment vessels by cooling the heat generated from the reactor, using portable equipment such as large-capacity water supply vehicles, AC power supply vehicles, and recovery of the water injection function to the reactor.
- It will be the 8th time that training such as this which implements a combination of multiple drills, such as "Reporting," "Evacuation guidance," and "Severe accident response," has been held following the Great East Japan Earthquake.
- Approximately 700 people from the Hamaoka Nuclear Power Station, headquarters, Shizuoka branch and Tokyo branch will participate in these drills.
- In order to improve the safety of the Hamaoka Nuclear Power Station, it is essential to enhance both hardware side countermeasures of safety improvement construction work and software side disaster prevention countermeasures.
- For hardware side countermeasures, we have voluntarily and continuously implemented safety improvement construction work that goes beyond correspondence with the New Regulatory Requirements. In the future as well, we will strive to be "as thorough as possible" by implementing the most recent knowledge and review details from review meetings.
- On the other hand, regarding software side countermeasures to be conducted, in addition to ongoing implementation of disaster drills including emergency response drills, we also plan to be prepared in the unlikely event of a nuclear disaster by strengthening in-house and external countermeasures such as the following:
The upgrading of procedure manuals and internal frameworks, such as the establishment of the "Emergency Readiness Team" last July
Enhanced cooperation with Shizuoka Prefecture and governments surrounding power stations in the event of a disaster for both information and evacuation aspects
- That concludes my remarks for today.