Kyushu Electric Rises on Forecast of Return to First-Half Profit

Kyushu Electric Power Co. rose the most in almost two weeks as the operator of the first nuclear reactor to restart in Japan following the introduction of new safety rules after the Fukushima disaster forecast a return to profit.

Shares of the Fukuoka, Japan-based company gained 59 yen, or 4.4 percent, to 1,412 yen at the close in Tokyo. They had earlier risen as much as 7.5 percent, the biggest one-day jump since May 1, 2014.

Operating profit for the six months ending Sept. 30 is expected to be 70 billion yen ($587 million), compared with a 16.3 billion yen loss a year earlier, the company said after markets closed on Friday. The company also forecast net income of 45 billion yen in the period, its first profit since Fukushima.

The company is benefiting from a drop in oil and liquefied natural gas prices, according to Polina Diyachkina, an analyst at Macquarie Group Ltd.

Kyushu Electric’s rise is a reaction to the company “forecasting its first net profit in four years,” she said by phone. “They will also benefit in the second half of the fiscal year from the lower price of oil and nuclear power coming online.”

Kyushu Electric restarted the no. 1 reactor at its Sendai facility on Aug. 11, and expects to restart the second reactor in the middle of October. Twelve reactors will restart by March 31, 2017, out of Japan’s operable fleet of 43, according to the average of four analyst estimates compiled by Bloomberg.

Oil has slumped more than 25 percent from this year’s closing peak in June on signs the global glut that drove prices to a six-year low will persist.

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