Thursday, October 17, 2013
Kansai Electric Posts 1st-Half Profit
TOKYO (Nikkei)--Kansai Electric Power Co. (9503) logged a group pretax profit of 31 billion yen for the April-September half, crawling out from under a 171.9 billion yen loss for the same period a year earlier and trouncing the 40 billion yen loss it had forecast.
According to Wednesday's announcement, sales rose 15% on the year to 1.61 trillion yen, beating the estimate by 30 billion yen, as the summer sizzle fueled heavier air conditioner use.
Net profit totaled 15 billion yen, exceeding its guidance calling for a 32 billion yen loss and a sharp reversal from a year-earlier 116.7 billion yen loss. Stronger sales of higher-priced household electricity gave earnings a boost.
The company also cut 7 billion yen in outsourcing costs for such projects as setting up information technology systems. It plans to delay booking most of the 16 billion yen incurred in repair costs for transmission equipment until the second half.
The utility has not yet projected its full-year results, including dividends. The Nos. 3 and 4 reactors at its Oi nuclear plant were shut down in September for routine inspections, and Kansai Electric still has no target date for bringing any of its nuclear facilities back online.
"If the plants are not restarted, it will be extremely difficult for us to turn a full-year profit," said a company official.
(The Nikkei, Oct. 17 morning edition)