Kyushu Electric Power Company Incorporated (KEPCI) has reported total ordinary revenues of JPY1.12 trillion for the nine months of fiscal 2008, compared with the total ordinary revenues of JPY1.09 trillion in the year-ago period. It also reported a net income of JPY15.4 billion for the nine months of 2008, compared with net income of JPY59 billion in the year-ago period.
Consolidated Financial Overview
Consolidated sales (operating revenues) increased by 2.8% to JPY1,115.2 billion compared with the in the third quarter of fiscal year (FY) FY2007 and the ordinary revenues increased by 2.8% to JPY1,123.8 billion mainly affected by the business performance in electricity business as the electricity sales revenue increased owing to the fuel cost adjustment system while the electricity sales volume decreased.
On the expenditure side ordinary expenses also increased by 10.5% to JPY1,102.6 billion compared with the third quarter of the previous year mainly because of increased fuel cost and cost to purchase electricity from other companies affected by soaring fuel prices in electricity business.
As a result, the ordinary income for the in the third quarter of FY2008 decreased by 77.9% to JPY21.2 billion.
The net income decreased by 73.8% to JPY15.4 billion compared with the third quarter of FY2007 because the company recorded a gain on sales of marketable securities of JPY5.4 billion as an extraordinary gain.
Sales and Supply Overview
In the third quarter of FY2008, the demand for electric light, power for commercial operations and other general demands decreased by 1.4% compared with the same period of the previous year mainly because the air-conditioning demand decreased as summer temperature after August 2008 shifted below the previous year’s level.
The power demand from large industrial customers increased by 0.4% compared with the previous year. In the first six months, the power demand increased in the transportation machinery, chemicals and non-ferrous metal industries, while in October through December, the demand decreased in main industries including electric and transportation machinery and steel and iron.
Consequently, the total electricity sales for the third quarter of FY2008 decreased by 0.9% to 64.75 billion kWh compared with the third quarter of the previous year.