Japan's Kansai Elec ups FY profit forecast on nuclear power, demand
TOKYO, Jan 31 (Reuters) - Kansai Electric Power Co (9503.T), opens new tab, Japan's top nuclear power operator, raised its profit forecast for the fiscal year ending in March by 40% to 365 billion yen ($2.4 billion) on higher nuclear power runs and stronger earnings at its transmission and distribution business.
Kansai Electric had five nuclear reactors online with a combined capacity of 4.6 gigawatts as of end-December. On Friday, the company raised its nuclear capacity factor forecast - an indicator of its nuclear power load - to 85% from the previously expected 80%.
Kansai Electric now expects profit from its transmission and distribution business to rise by 73 billion yen from the previous forecast.
The company is also targeting higher electricity and gas sales thanks to a higher demand forecast for the Kansai area - Japan's second busiest region - after the Tokyo Metropolitan area - which includes the cities of Osaka, Kyoto and Kobe.
For the nine-month period ended in December, Kansai Electric posted a 3% year-on-year increase in net profit to 362 billion yen, also driven by increased nuclear power operations and as it booked a 63 billion yen gain from the sale of a 28% stake in UK power distribution company Electricity North West.
The results from Kansai Electric, which kept a 12% stake in Electricity North West after the deal, contrast to those from major Japanese power sales companies.
Profits at JERA, the country's biggest utility, halved to 155 billion yen in April-December amid a weaker performance in overseas power generation, fuel and renewable energy businesses, including in Taiwan.
Tokyo Gas (9531.T), opens new tab, Japan's biggest city gas provider, saw profit for the period drop 68% to 36.6 billion yen amid rising raw material costs. It revised guidance for full-year profit to 72 billion yen from earlier expected 81 billion yen.
JERA kept its profit forecast for the full fiscal year at 200 billion yen.
($1 = 154.6000 yen)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
an hour ago
- Reuters
Japan's JERA agrees to buy US LNG to rebalance supply portfolio
TOKYO, June 12 (Reuters) - JERA, Japan's biggest power generator, has agreed to new supply deals for U.S. liquefied natural gas (LNG) from four projects to diversify its global portfolio away from its reliance on Australia, it said on Thursday. JERA plans to buy up to 5.5 million metric tons per annum (mtpa) of U.S. LNG under 20-year contracts, with deliveries starting around 2030. That total includes some previously reported deals as well as newly announced agreements. The move illustrates Japan's efforts to seek stable and flexible LNG supply to strengthen energy security and meet growing electricity demand driven by expanding data centres. The country is the world's second-largest LNG importer after China. JERA, Japan's biggest LNG buyer, has signed a heads of agreement with Sempra Infrastructure for 1.5 mtpa from its Port Arthur LNG phase 2 project and a HOA with Cheniere Marketing for up to 1 mtpa from Corpus Christi LNG and Sabine Pass LNG. The Japanese utility also signed a 20-year sales and purchase agreement (SPA) with U.S. LNG developer Commonwealth LNG for 1 mtpa from its Louisiana project. On Tuesday, sources familiar with the negotiations told Reuters about the deal though both companies declined to comment at the time. The 5.5 mtpa figure also includes its deal announced on May 29 with NextDecade (NEXT.O), opens new tab to buy 2 mtpa from its Rio Grande LNG project. All four are 20-year, free-on-board contracts with no destination restrictions, although the Cheniere deal could go beyond 20 years, JERA said. "We made these decisions because cost-competitive and flexible LNG is essential as we look towards the 2030s," JERA's Global CEO and Chair Yukio Kani told Reuters. He added that LNG has become increasingly important amid rising power demand from data centres and the soaring costs of cleaner alternatives like hydrogen and ammonia. "We were also aiming to secure contracts with the projects already under development and tied to the EPC (engineering, procurement, and construction) agreements before the recent surge in LNG project costs and interest rates," he said. The announcement comes amid ongoing trade talks between Japan and the United States, though Kani stressed there was no government pressure behind the deals which he said were purely private sector decisions. "We are rebalancing towards the global supply mix," he said, to reduce its weighting toward Australia. After the new deals, the U.S. will supply nearly 30% of JERA's LNG mix, up from 10% now. Oceania and Asia, including Australia, currently account for more than half. JERA, jointly owned by Tokyo Electric Power (9501.T), opens new tab and Chubu Electric Power (9502.T), opens new tab, already buys U.S. supply from Freeport LNG and Cameron LNG. In 2023, it signed a 20-year contract to buy 1 mtpa from Venture Global's (VG.N), opens new tab CP2 project.
Reuters
a day ago
- Reuters
JERA close to signing deal for 1 MTPA of LNG from Commonwealth, sources say
HOUSTON, June 10 (Reuters) - U.S. liquefied natural gas developer Commonwealth LNG is close to signing a deal with Japan's biggest power generator, JERA, to supply it with 1 million metric tons per annum (mtpa) of LNG from its proposed export facility in Louisiana, two sources told Reuters. The deal would run for 20 years and bring Commonwealth LNG to 8 mtpa committed under long-term contracts. The company has said publicly that it wants to get contracts for at least 8 mtpa of its 9.5 mtpa LNG export terminal capacity to give the project the financial go ahead. The U.S. is the largest exporter of LNG in the world and based on projects under construction and those expected to get the financial go ahead this year, the country could triple its export capacity by 2030. "They have agreed to terms on the deal and should be signing it soon," one of the sources familiar with the negotiations told Reuters. Commonwealth LNG did not respond to a request for comment. JERA declined to comment. Commonwealth was one of the projects impacted by a pause on new LNG export licenses imposed by former President Joe Biden pending a study on the economic and environmental impact of further U.S. LNG expansion. That freeze was lifted by the Trump administration, which has promised to unleash American energy. In February Commonwealth received a conditional non-free trade agreement (non-FTA) export authorization from the Department of Energy. Commonwealth said it expects to reach a final investment decision in September 2025 for the project, with first LNG production expected in the first quarter of 2029. In May JERA announced that it had signed an agreement with NextDecade to purchase 2 mtpa of LNG from its Rio Grande project's fifth liquefaction facility.
Scottish Sun
a day ago
- Scottish Sun
‘Can't wait', cry locals as exciting new Japanese sushi bar set to open in Scots town
It is the first of its kind for the west coast town GOOD TIMES ROLL 'Can't wait', cry locals as exciting new Japanese sushi bar set to open in Scots town A SCOTS town is set to welcome a new Japanese sushi bar, with locals expressing their excitement and saying they "can't wait" to try the new offerings. Homer Japanese Sushi Bar is preparing to open its doors to customers for the first time today. 2 The new venture will take over the old Thai 2 Go unit Credit: Google Maps Based in Ayr, the venue will serve fresh, traditional sushi alongside a variety of Far Eastern hot dishes. The New Street eatery will feature classic options such as sashimi, nigiri, temaki, and maki, as well as more Western-inspired choices like California rolls. A selection of ramen and noodle dishes, as well as donburi and teriyaki options, will also be available. Side dishes range from authentic Japanese miso soup to salt and pepper chips, catering to local tastes. Announcing the new venture on Facebook, the sushi bar's owners said:"Hajimemashite Ayr. "We are proud to announce that our restaurant will be open for business this Tuesday, 10 June. "Please leave us messages on our online pages for further queries. "Looking forward to seeing you all soon." Eager customers took to the comments to share their enthusiasm for the new international flavours arriving in the coastal town. One wrote: "Looking forward to some sushi!" I tried top restaurant's new haggis sushi, it should be disgusting but it works Another commented: "We need to try this." A third added: "I can't wait!" The Japanese sushi bar will replace the former Homer Thai 2 Go, which closed last year. The previous venue offered a mix of Thai and Japanese cuisine before its closure.
