Kansai Electric Power Co. withdrew its full-year sales and profit forecasts because it can’t assess the impact on its earnings from power-savings measures and reactor halts after the Fukushima nuclear disaster.
The Osaka-based company in April forecast net income may decline 19 percent to 100 billion yen ($1.3 billion) in the year ending March 2012, while sales were expected to gain 4.3 percent to 2.89 trillion yen. Kansai Electric made the revision in a quarterly earnings announcement today.
The utility joins Kyushu Electric Power Co. and Hokkaido Electric Power Co. in avoiding or revising full-year profit outlooks, after three meltdowns at Tokyo Electric Power Co.’s Fukushima Dai-Ichi plant in March raised questions about nuclear safety and prevented idled units from restarting.
Kansai Electric, which relies on nuclear power for about half of its output, is facing a shortfall in supply as almost two-thirds of the company’s reactors are shut for maintenance and must be tested before starting.
The utility said net income in the three months ending June 30 was 34.5 billion yen, compared with a 10 billion yen loss a year earlier.
Operating profit, or sales minus the cost of goods sold and administrative expenses, rose 84 percent to 57.4 billion yen, while revenue was up 4.7 percent to 647.4 billion yen.
Kansai Electric fell 0.5 percent to close at 1,357 yen in Tokyo today, extending the decline since the March 11 quake to 36 percent. The benchmark Nikkei 225 Average retreated 1.5 percent.
Hokkaido Electric today said it’s unable to give a full- year forecast without a certain restart date for its Tomari nuclear reactors. The utility in April said net income will climb 67 percent to 20 billion yen this fiscal year.
The Sapporo, Hokkaido-based utility today reported net income jumped 15-fold to 3.94 billion yen in the quarter ended June 30, while sales climbed 11 percent to 146.2 billion yen. Operating income rose 5 percent to 10.4 billion yen, the company said in a statement today.
Tokyo Electric, which hasn’t given a full-year outlook, has 45 days since the end of the quarter to report earnings, according to Tokyo Stock Exchange rules. The company hasn’t set a date for the announcement, spokesman Naoyuki Matsumoto said by telephone today.