Tokyo Electric Power Co. plans to book a group net loss of more than ¥800 billion for fiscal 2010 as it gears up for dismantling its crisis-hit nuclear power plant, according to sources close to the matter.
Tepco will include the cost of decommissioning four reactors at the Fukushima No. 1 plant as an extraordinary loss in its financial statement for the year ended in March to be released Friday, the sources said.
The utility also plans to book some of the compensation costs for the year as it has started making provisional damages payments to residents and others affected by the March 11 nuclear accident, the sources said Monday.
The net loss could increase further, depending on the amount of the compensation costs to be included in the upcoming statement, according to the sources.
Tepco’s profitability will almost certainly be surely eroded by higher fuel procurement costs because it has to secure more oil and other fossil fuels for thermal power generation to make up for the halted nuclear reactors in the wake of the March earthquake and tsunami disaster.
Under the circumstances, it could tap into deferred tax assets worth some ¥480 billion, which the company had put aside on the assumption of stable profits from continued operation of its nuclear power plants, according to the sources.
In light of outlays for compensation to those affected by the nuclear crisis estimated at several trillion yen, Tepco plans to announce an extensive restructuring scheme when it releases earnings results for fiscal 2010, they said.
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