Electric Power Sales Volume
The domestic demand for electric power during the current quarter fell below one in the same period of the previous fiscal years, owing to decreased demand for air conditioning resulting from relatively low temperatures in August and September and lower industrial demand than one in the same period of the previous fiscal year.
The company’s total sales volume in the electric power business was down 0.7% to 47.2 billion kWh compared to the same period of the previous fiscal year.
The company’s total for hydroelectric and thermal power sales volume in the wholesale electric power business during the quarter was down 0.6% to 46.0 billion kWh compared to the same period of the previous fiscal year. The low water flow (water supply rates dropped from 84% to 82%) resulted in a 4.2% decline in hydroelectric power sales volume compared to the same quarter of the previous fiscal year, to 6.2 billion kWh. Thermal power sales volume was flat compared to the same period of the previous year, at 39.8 billion kWh.
Electric power sales volume for other electric power businesses were also down 3.1% to 1.1 billion kWh compared to the same period of the previous fiscal year, due to a fall-off in the capacity utilization of power plants for PPS and other factors.
Overview of Income and Expenditures
Consolidated sales (operating revenues) for the current quarter grew 22.9% to JPY544.4 billion compared to the same period of the previous fiscal year. Hydroelectric power revenue in wholesale electric power business saw a decline due to the lower electric power sales volume brought by low water flow as was the case with the same quarter the previous fiscal year as well as revisions in rates for hydroelectric power and transmission contracts effective from September 2007. Althouhgh thermal power sales volume in the wholesale electric power business was unchanged from the same period of the previous fiscal year, an increase in the sales unit price accompanying the fuel price hike led to an increase in revenues. Non-operating revenue was down 25.6% to JPY11.9 billion compared to the same period of the previous year, due to repercussions from the sale of the wind power company in Spain, so quarterly ordinary revenue was JPY556.3 billion, an increase of 21.2% compared to the same period of the previous fiscal year.
On the other hand, operating expenses were JPY479.3 billion, for a 23.8% increase compared to the same period of the previous fiscal year. This was due to an increase in repair expenses arising from periodic inspections at thermal power plants, an increase in fuel costs accompanying the coal price hike, and increases in personnel expenses resulting from the calculation of retirement benefit obligations, despite a fall in depreciation and amortization cost. Quarterly ordinary expenses, including non-operating expenses, were up 23.3% to JPY502.0 billion compared to the same period of the previous fiscal year.
Based on the above, ordinary income rose by 4.8% to JPY54.2 billion compared to the same period of the previous fiscal year. While a profit distribution from an anonymous association that was dissolved with the company’s acquisition of trust beneficiary interest in the securitization of its headquarters building and land was posted as extraordinary income, an extraordinary loss was also posted due to impairment-related appraisal losses (valuation losses of securities) resulting from a significant drop in the current price of market value. Therefore, a quarterly net profit after tax decreased by 16.1% to JPY29.4 billion compared to the same period of the previous fiscal year. Note that the rate of increase or decrease compared to the same period of the previous fiscal year is shown for reference.