Kepco set to log record net loss

Kyodo

Kansai Electric Power Co. said Monday it expects to log its highest-ever group net loss — ¥253 billion — for fiscal 2011 ending next month as it expands fossil fuel purchases to cover the loss of its nuclear power capacity.

The first loss in two years compares with a profit of ¥123.14 billion posted the previous year. Consolidated sales are estimated to increase to ¥2.81 trillion from ¥2.77 trillion.

The drop in earnings prompted Kepco to cut executive pay 15 percent for regular directors and 10 percent for outside directors for the immediate future from March.

Kansai Electric and other power utilities have increased fossil fuel purchases as nuclear reactors suspended for checks remain offline amid the Fukushima nuclear crisis triggered by the March 2011 earthquake and tsunami.

Kepco, which depends heavily on nuclear power, has shut down all 11 of its reactors.

On an unconsolidated basis, Kansai Electric estimates a net loss of ¥265 billion for fiscal 2011, against a profit of ¥103.33 billion in the previous year.

But the utility plans to dip into internal reserves to pay its ¥60 dividend as earlier planned for fiscal 2011.