TOHOKU ELECTRIC POWER CO., INC.
April 25, 2019
Financial Results for the Fiscal Year ended March 31, 2019 (FY2018) and Financial Forecasts
for the Fiscal Year ending March 31, 2020 (FY2019)
Tohoku Electric Power Co., Inc. (the "Company") today submitted a summary of its financial statements for year ended March 31, 2019 on the Tokyo Stock Exchange.
【Consolidated financial results】
Even with a decrease in the volume of retail electricity sales due to intensifying competition caused by liberalization of electricity market, consolidated operating revenue increased to ¥2,244.3 billion (a year-on-year increase of ¥172.9 billion, or a 8.3% increase), mainly due to an increase in wholesale electricity sales beyond our franchise area and to JEPX.
Consolidated operating revenue includes ¥408.3 billion, total of grant under act on purchase of renewable energy sourced electricity and surcharge for promoting renewable energy sourced electricity based on Feed-in Tariff Scheme for renewable energy and the self-contracted portion due to introduction of the indirect auction. As this is recorded in expenses as well, it does not affect the Company's income.
Consolidated ordinary income decreased to ¥65.7 billion (a year-on-year decrease of ¥22.6 billion, or a 25.7% decrease), due to an increase in fuel cost caused by a decrease in operation of hydro power station caused by a lower-than-normal water flow rate and a rise in fuel price, despite our thorough streamlining efforts.
The Company booked an extraordinary income relating to compensation for damage of restoration delay of Haramachi Thermal Power Station caused by the accident at TEPCO's Fukushima Daiichi Nuclear Power Station and an extraordinary loss in accordance with decision of decommissioning of Onagawa Nuclear Power Station Unit 1. As a result, net income attributable to owners of parent was ¥46.4 billion, a decrease of ¥0.7 billion (or a 1.6% decrease) year-on-year.
【Electricity Sales Volume】
There was an increase in cooling demand resulting from higher temperature in this summer than last summer; nevertheless, contract switching due to intensifying competition and a decrease in heating demand due to higher temperature in this winter compared to the previous year decreased retail electricity sales to 68.9TWh, down 4.3% year-on-year.
On the other hand, an increase in wholesale electricity sales beyond our franchise area increased wholesale electricity sales to 16.2TWh, 18.8% increase year-on-year.
As a result, total electricity volume decreased 85.1TWh, down 0.6% year on year.
【Dividend】
Our basic dividend policy is to distribute stable dividends, taking into consideration the Company's business performance of the relevant fiscal year and the medium- to long-term financial prospects.
With regard FY2018 financial result, even though fuel cost was increased due to a decrease in operation of hydro power station caused by a lower-than-normal water flow rate and a rise in fuel price and an extraordinary loss was recorded in accordance with decision of decommissioning of Onagawa Nuclear Power Station Unit 1, in addition to a decrease in the volume of retail electricity sales due to intensifying competition caused by liberalization of electricity market, the Company secured certain level of profits for this period, resulting from an increase in wholesale electricity sales beyond our franchise area and to JEPX and our continuous thorough streamlining efforts.
Even with the impact of intensifying competition caused by liberalization of electricity market, we will strive to improve our corporate value under the corporate slogan "Yori, Sou, Chikara", through the challenge to new business opportunities and investment for future growth, in addition to strengthening the competitiveness of existing businesses and expanding profits by the pursuit of earning opportunities and continuous thorough streamlining efforts through the comprehensive strength of the corporate group.
Comprehensively deliberating the facts described above, the Company decided to pay the year-end dividend of 20 yen per share for FY2018. The Company paid interim dividend of 20 yen, and thus total annual dividend is expected to be 40 yen.
【Financial forecasts for fiscal 2019】
The Company projects lower electricity sales volume for FY2019; nevertheless, consolidated operating revenue for FY2019 is expected to be approximately ¥2,390.0 billion, a 6.5% increase compared to the previous year, due to an increase in wholesale electricity sales and the self-contracted portion caused by introduction of the indirect auction.
Even with the impact of intensifying competition caused by liberalization of electricity market, consolidated ordinary income for FY2019 is expected to be approximately ¥73.0 billion, a 11.0% increase compared to the previous year, mainly due to time lag between fuel cost and fuel cost
adjustment charges and a decrease in fuel cost caused by starting operation of Noshiro No.3.
Net income attributable to owners of parent is expected to be approximately ¥45.0 billion, a 3.2% decrease compared to the previous year.
【Dividend Forecast for FY2019】
With regard to the dividend for FY2019, the Company intends to pay 20 yen per share for both interim and year-end dividends by taking into account overall business environment, earnings and improvement of financial positions.
< Financial Forecasts for FY2019 (April 1, 2019 - March 31, 2020) > | |||||||||||||||
Consolidated | (Billions of | yen) | |||||||||||||
Operating | Operating | Ordinary | Net income | ||||||||||||
revenue | income | income | attributable to | ||||||||||||
owners of parent | |||||||||||||||
Forecast | 2,390.0 | 90.0 | 73.0 | 45.0 | |||||||||||
Non-consolidated | (Billions of | yen) | |||||||||||||
Operating | Operating | Ordinary | Net | ||||||||||||
revenue | income | income | income | ||||||||||||
Forecast | 2,170.0 | 69.0 | 55.0 | 39.0 | |||||||||||
< | Major factors > | ||||||||||||||
Items | FY2019 Forecast | ||||||||||||||
Retail | Approx. | 68.1 | |||||||||||||
Electricity sales (TWh) | |||||||||||||||
Wholesale | Approx. | 19.7 | |||||||||||||
Total | Approx. | 87.8 | |||||||||||||
Crude oil CIF price ($/bbl.) | Approx. 65 | ||||||||||||||
Exchange rate (¥/$) | Approx. | 110 | |||||||||||||
Nuclear power utilization rate (%) | - | ||||||||||||||
< | Sensitivity Analysis > | ||||||||||||||
Items | FY2019 Forecast | ||||||||||||||
Crude oil CIF price (per $1/bbl.) | Approx. | 3.4 | billion | yen | |||||||||||
Exchange rate (per ¥1/$) | Approx. | 3.3 | billion | yen | |||||||||||
April 25, 2019
Tohoku Electric Power Co., Inc.
Summary of Financial Statements (Unaudited)
(April 1, 2018 - March 31, 2019)
Information below is an English translation of the "Unaudited Financial Release" for the year ended March 31, 2019, which has been filed with the Tokyo Stock Exchange, Inc. for public inspection.
Tohoku Electric Power Co., Inc. (Code : 9506)
1-7-1 Honcho, Aoba-ku, Sendai, Miyagi, Japan (URL : http://www.tohoku-epco.co.jp)
Representative : Hiroya Harada, President
Tel : +81-22-225-2111
(Note) All monetary values are rounded down to the nearest units as indicated in each table.
1. Business Results for Consolidated FY2018 (Year ended March 31, 2019)
(1) Progresses of Financial Results
Operating revenue | Operating income | Ordinary income | Net income attributable to | |||||
owners of parent | ||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |
Year ended Mar. 31, 2019 | 2,244,314 | 8.3 | 83,633 | (22.3) | 65,743 | (25.7) | 46,483 | (1.6) |
Year ended Mar. 31, 2018 | 2,071,380 | 6.2 | 107,665 | (17.4) | 88,433 | (15.5) | 47,216 | (32.5) |
(Note) Comprehensive income (FY2018: 55,763 million yen -14.3%, FY2017: 65,052 million yen -25.6%) Percentage figures represent changes as compared to the same period of the previous year.
Net income per share | Net income per share | Net income / Equity | Ordinary income / | Operating income / | ||||||||||
(basic) | (diluted) | Total assets | Operating revenue | |||||||||||
Yen | Yen | % | % | % | ||||||||||
Year ended Mar. 31, 2019 | 93.12 | 87.61 | 6.2 | 1.6 | 3.7 | |||||||||
Year ended Mar. 31, 2018 | 94.61 | 89.60 | 6.6 | 2.1 | 5.2 | |||||||||
(Reference) | Share of profit of entities accounted for using equity method (FY2018: 141 million yen, FY2017: 715 milion yen) | |||||||||||||
(Note) Percentage figures represent changes as compared to the same period of the previous year. | ||||||||||||||
(2) Changes in Financial Positions | ||||||||||||||
Total assets | Net assets | Equity-to-asset ratio | Net assets per share | |||||||||||
Millions of yen | Millions of yen | % | Yen | |||||||||||
Mar. 31, 2019 | 4,258,633 | 833,711 | 17.9 | 1,526.66 | ||||||||||
Mar. 31, 2018 | 4,222,163 | 798,705 | 17.3 | 1,463.42 | ||||||||||
(Reference) | Shareholders' Equity (March 31, 2019: 762,167 million yen, March 31, 2018: 730,361 million yen) | |||||||||||||
(3) Situations of Cash Flows | ||||||||||||||
Cash flows from | Cash flows from | Cash flows from | Cash and cash equivalents | |||||||||||
operating activities | investing activities | financing activities | at end of the year | |||||||||||
Millions of yen | Millions of yen | Millions of yen | Millions of yen | |||||||||||
Year ended Mar. 31, 2019 | 262,804 | (250,570) | (69,307) | 184,942 | ||||||||||
Year ended Mar. 31, 2018 | 324,019 | (273,915) | (36,280) | 242,171 | ||||||||||
2. Dividends | ||||||||||||||
Cash dividends per share | Dividends paid | Dividends | Dividends / | |||||||||||
1Q | 2Q | 3Q | Year-end | Annual total | for the year | payout ratio | Net assets | |||||||
Yen | Yen | Yen | Yen | Yen | Millions of yen | % | % | |||||||
Year ended Mar. 31, 2018 | - | 20.00 | - | 20.00 | 40.00 | 19,963 | 42.3 | 2.8 | ||||||
Year ended Mar. 31, 2019 | - | 20.00 | - | 20.00 | 40.00 | 19,969 | 43.0 | 2.7 | ||||||
Year ending Mar. 31, 2020 | - | 20.00 | - | 20.00 | 40.00 | 44.4 | ||||||||
(forecast) | ||||||||||||||
3. Business Results Forecast for Consolidated FY2018 (Year ending March 31, 2020)
Operating revenue | Operating income | Ordinary income | Net income attributable | Net income per share | |||||
to owners of parent | |||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | |
FY2019 | 2,390,000 | 6.5 | 90,000 | 7.6 | 73,000 | 11.0 | 45,000 | (3.2) | 90.14 |
(Note) Percentage figures represent changes as compared to the same period of the previous year.
1
(Reference) Summary of Non-consolidated Financial Statements
1. Business Results for Non-consolidated FY2018 (Year ended March 31, 2019)
(1) Progresses of Financial Results
Operating revenue | Operating income | Ordinary income | Net income | ||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||
Year ended Mar. 31, 2019 | 2,025,559 | 8.4 | 60,284 | (26.8) | 46,821 | (30.7) | 40,320 | (3.6) | |
Year ended Mar. 31, 2018 | 1,869,361 | 7.5 | 82,399 | (17.7) | 67,551 | (16.1) | 41,820 | (30.2) | |
Net income per share | Net income per share | ||||||||
(basic) | (diluted) | ||||||||
Yen | Yen | ||||||||
Year ended Mar. 31, 2019 | 80.77 | 75.97 | |||||||
Year ended Mar. 31, 2018 | 83.80 | 79.33 | |||||||
(Note) Percentage figures represent changes as compared to the same period of the previous year. | |||||||||
(2) Changes in Financial Positions | |||||||||
Total assets | Net assets | Equity-to-asset ratio | Net assets per share | ||||||
Millions of yen | Millions of yen | % | Yen | ||||||
Mar. 31, 2019 | 3,923,541 | 654,178 | 16.6 | 1,308.32 | |||||
Mar. 31, 2018 | 3,906,474 | 636,845 | 16.3 | 1,274.13 |
(Reference) Shareholders' Equity (March 31, 2019: 653,164 million yen, March 31, 2018: 635,888 million yen)
2. Business Results Forecast for Non-consolidated FY2019 (Year ending March 31, 2020)
Operating revenue | Operating income | Ordinary income | Net income | Net income per share | |||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | |
FY2019 | 2,170,000 | 7.1 | 69,000 | 14.5 | 55,000 | 17.5 | 39,000 | (3.3) | 78.12 |
(Note) Percentage figures represent changes as compared to the same period of the previous year.
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Tohoku Electric Power Co. Inc. published this content on 25 April 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 25 April 2019 06:32:08 UTC