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.
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.
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