Chubu Electric Power seeks growth opportunities in Tokyo area

-
Chubu Electric Power Co., Inc., established in 1951, is a power company whose main business area is the Chubu region.

It is the third largest power company in Japan and used to almost monopolize the power supply in the Chubu region.

However, the amount of power the company supplies has been decreasing due to intensifying competition among energy companies on the backdrop of the recent power liberalization.

As for the second half of the fiscal year ending March 31, 2020, electricity the company supplied decreased by 300 million kwh from the previous year to 59.1 billion kwh due to the switchover of customers to other operators under intensified competition, and the decline in operation of cooling facilities because of lower temperatures in this summer compared to the previous year.

On the other hand, an increase of fuel cost adjustment charge pushed up its sales by 84.8 billion yen from the previous fiscal year to 1,572.3 billion yen, and net income increased 69.6 billion yen to 136.1 billion yen.

Japanese electric power companies including Chubu Electric Power have been struggling to recover from damages caused by the major earthquake in 2011.

Since then the company seems to have returned to profitable business recently with profit margin improving and dividend growing steadily.

To secure future growth, Chubu Electric Power merged its thermal power generation business with that of Tokyo Electric Power Co., the largest power company in Japan in April 2019.

This cooperation by these major power companies is expected to help Chubu Electric Power to cope with harsh competition in retail business by expanding its electric power sales in Tokyo area and profit growth.

Comments

Post a Comment

Popular posts from this blog

Food and Drinks: Kaiten-sushi serves fresh and high quality of seafood

-
Image
Conveyor belt sushi , also known as Kaiten-sushi is a semi-self-service type, inexpensive sushi restaurant where small plates bringing various types of sushi on them are continuously circulated on chain conveyors installed along the seats.  Fresh and well-made sushi can be enjoyed for relatively cheap prices there. Plates typically come with one or two sushi pieces each and customers pick up plates they like. Customers can also place orders through a touch screen at each table when sushi they like is not available on conveyor belts.  Those Sushi are usually served on plates with several colors showing their prices ranging from 100 yen to around 500 yen. Some restaurants set the same price for all plates. The lowest price for a plate is usually 100 yen. That is why Kaiten-sushi is often called "100 yen sushi" and very popular among Japanese. Customers are given their bills from a staff who counts plates when they finish eating. Kaiten-sushi has grown thanks to technologie...
Read more

Investing in Japan: Menicon, a leading Japanese contact lens manufacturer, aims overseas market expansion

-
Image
Menicon secured profit growth amid COVID-19 disruptions Menicon Co., Ltd. is a leading contact lens manufacturer in Japan founded in 1951, headquartered in Nagoya. It consistently develops, manufactures and sells contact lenses and related products in-house. To date, Menicon has developed various types of contact lenses such as hard lenses, soft lenses, disposables (disposable), lenses for astigmatism and bifocal lenses. It has the No. 1 market share for hard lenses and the No. 2 market for soft lenses in Japan.  As for the recent consolidated financial results, Menicon announced that net income for the fiscal year ended March 31, 2020 was 4 billion yen, up 14% from the previous year. While the sales and profits of most Japanese companies fell sharply due to the spread of new coronavirus infections, Menicon increased its sales by 4.5% from the previous year to 84.5 billion yen, a record high for the fifth consecutive year since listing of its stock. On the other hand, the earning...
Read more

Investing in Japan: Toyota shows its strength shrugging off pandemic damage and semiconductor shortage

-
Image
COVID-19 cases rise in Japan amid state of emergency, Tokyo Olympics and Paralympics to be downsized The Japanese government has decided to add three prefectures to its state of emergency as coronavirus cases continue to rise.   Prime Minister Yoshihide Suga said on May 14 that he decided to expand a COVID-19 state of emergency covering Tokyo and other areas to three more prefectures as infections continue to surge ahead of the Summer Olympics.  Starting on May 15, it will cover Hokkaido, Okayama and Hiroshima in an effort to curb infections and ease the strain on medical systems. The government will also designate three more prefectures as areas where intensive virus measures should be taken which is often called “Manbou”, acronym in Japanese for quasi-emergency to contain the virus.  Daily new cases have been on the rise nationwide in recent weeks reaching more than 6,000 for the fourth straight day as of May 14. The recent spike in new cases forces the organizers of ...
Read more