June 4th, 2011
Econintersect: Tokyo Electric Power Co. (TPO.F) is expected to post an unconsolidated net loss of ¥570 ($7.1) billion for the business year to March 2012. This does not include any compensation to those affected by the ongoing Fukushima nuclear crisis. A variety of promises to pay compensation have been made. Tepco is the operator of the Fukushima nuclear plant (pictured) disabled by the March 11 earthquake and tsunami. Follow up:
Follow up:From The Japan Times:
Tokyo Electric Power Co. is expected to post an unconsolidated net loss of ¥570 billion for the business year to March 2012, excluding compensation to those affected by the ongoing Fukushima nuclear crisis, an internal document showed Saturday.
Following a shift to thermal power generation necessitated by the suspension of operations at the crippled Fukushima No. 1 nuclear plant, the utility anticipates fuel costs to soar by ¥830 billion, according to the document's estimates of unconsolidated earnings for the current business year.
Compensation over the nuclear crisis has been excluded from the net loss projections as Tepco is still unable to calculate the full amount, which is said to reach several trillion yen.
The devastating March 11 earthquake and tsunami crippled the No. 1 plant, causing it to leak radioactive substances.
The amount of cash and deposits held by Tepco is expected to fall below ¥100 billion at the end of March 2012 from about ¥2.1 trillion at the end of this March, as the utility is facing difficulties in raising funds by issuing corporate bonds.
Tepco is expected to seek further loans from banks and support from the government to cover nuclear crisis-related compensation.
The company's sales for the current year are estimated to fall 1 percent from the previous year to ¥5.11 trillion.
Tepco stock, which is traded on a number of German bourses, has suffered massive losses. On the Franfurt exchange TPO.F has lost almost 90% from its recent high in September, 2010.