Tepco may report pretax profit

Kyodo

Tokyo Electric Power Co. will report a group pretax profit of about ¥120 billion for the April-September period, company sources said.

It is the first time the utility will report a first-half pretax profit since the crisis started in 2011 at its Fukushima No. 1 nuclear plant.

Household electricity rate increases implemented in September last year and cost-cutting steps, including postponing repair work on electric power stations, have helped to bring better results, according to the sources.

During the same period a year earlier, the utility incurred a pretax loss of ¥166.27 billion.

Tepco said Tuesday it will announce its earnings results through September on Thursday.

The utility is unlikely to release an earnings outlook for the current fiscal year through March because of the difficulty of forecasting the restart of two reactors at its Kashiwazaki-Kariwa nuclear plant in Niigata Prefecture.

Tepco, which has been placed under effective state control after receiving a ¥1 trillion capital injection last year, is seeking to achieve an unconsolidated pretax profit in fiscal 2013 as part of a turnaround plan endorsed by the government.

The utility has also separately received over ¥3 trillion in aid from a state-backed fund to pay compensation to people and companies affected by the world’s worst nuclear calamity since the 1986 Chernobyl disaster.

The aid is expected to be eventually repaid.