en.Wedoany.com Reported - Japan's Electric Power Development Co., Ltd. (J-POWER) reported a 47.3% year-on-year decline in first-quarter net profit, falling to $173.9 million (¥27.4 billion) from $330.6 million (¥52.1 billion) in the same period last year, primarily due to a decrease in equity-method investment gains following the sale of its U.S. thermal power assets, which offset growth in revenue and operating profit.
Recurring profit fell 45.9% year-on-year to $251.3 million (¥39.6 billion); revenue rose 12% year-on-year to $1.78 billion (¥280.3 billion), and operating profit increased 11.7% year-on-year to $230.3 million (¥36.3 billion). Non-operating income declined 69.3% to $99 million (¥15.6 billion). The company stated that the main reason was a reduction in the share of profits from investees accounted for under the equity method after the sale of its U.S. thermal power business equity. Operating expenses rose 12% due to higher fuel costs for power generation and overseas operations, while non-operating expenses climbed 19.5% due to increased foreign exchange losses.
Revenue growth was primarily driven by the thermal power segment: the thermal plant load factor rose from 43% to 49%, boosting thermal power sales volume by 16% to 7.7 terawatt-hours (TWh); overseas power sales volume grew 9.7% to 3.8 TWh, mainly supported by higher sales in Thailand. These gains offset the impact of a 16.2% decline in renewable energy power sales volume—attributable to the water supply rate falling from 105% to 94%—as well as reduced power sales volume purchased from the wholesale market.
By segment, the power generation business saw revenue rise 7.1% to $1.22 billion (¥192.7 billion), but segment earnings fell 1.8% due to higher fuel and power purchase costs. The overseas business posted a 33.8% increase in revenue to $421.3 million (¥66.4 billion), yet segment earnings dropped 67.7% following the sale of its U.S. thermal power business equity.
As of June 30, total assets increased to $24.37 billion (¥3.84 trillion) from $23.73 billion (¥3.74 trillion) at the end of March, mainly driven by the construction of the U.S. Charger solar project, investment in the Pak Lay hydropower plant project in Laos, and the depreciation of the yen. Interest-bearing debt rose to $12.44 billion (¥1.96 trillion), and net assets increased to $9.90 billion (¥1.56 trillion). J-POWER stated that there is no change to the forecast announced on May 12, maintaining its full-year earnings guidance. (US$1 = ¥157.59)
