Company Name: Kyushu Electric Power Company Inc.
Name of Representative: Kazuhiro Ikebe
President & Chief Executive Officer
(Code: 9508, First Section, Tokyo SE, Fukuoka SE)
Contact: Investor Relations Group, Corporate Strategy Division
(Phone: +81-92-726-1575)
Revision of Financial Results Forecast for FY2020
We hereby announce that we have revised our financial results forecast for FY2020 (withdrawn on January 29, 2021).
As for the year-end dividends for the FY2020, there is no change to the previous forecast (¥17.5 per common share, annual: ¥35 per common share).
1 Revision of financial results forecast
Revision of consolidated financial results forecast for FY2020 (April 1, 2020– March 31, 2021)
| Sales | Operating income | Ordinary income | Profit attributable to owners of parent |
EPS | ||
| (Unit: billion yen) | (Unit: billion yen) | (Unit: billion yen) | (Unit: billion yen) | (Unit: yen) | ||
| Forecast previously announced |
(A) | － | － | － | － | － |
| Revised forecast | (B) | 2,130.000 | 60.000 | 35.000 | 22.000 | 42.07 |
| Difference | (B-A) | － | － | － | － | － |
| Ratio | (%) | － | － | － | － | － |
| (Reference) Results for FY2019 |
2,013.050 | 63.813 | 40.052 | -0.419 | -6.05 | |
2 Reasons for revision
In early January extreme cold weather caused the supply-demand balance to become tight, leading power prices to soar on Japan’s wholesale market. This situation impacted the performance of the power generation and retail sales business and due to the uncertainty of its duration, it was difficult to make a sufficiently reliable forecast of the consolidated earnings for FY2020, and subsequently the earnings forecast was withdrawn.
We hereby announce the revised earnings forecast based on recent supply-demand trends etc.
(Reference: Key Factor)
| Revised | Previously announced | Difference | ||
| Retail electricity sales volume | 75.3 billion kWh* | － | － | |
| Wholesale electricity sales volume | 10.0 billion kWh | － | － | |
| Total electricity Sales Volume | 85.3 billion kWh | － | － | |
| Crude Oil CIF Price | 42 $/b | － | － | |
| Exchange Rate | 106 ¥/$ | － | － | |
| Nuclear Power [Transmission-end] (Capacity factor of nuclear power plants) |
21.6 billion kWh |
－ | － | |
| (62.1%) | － | － | ||
Note: Electricity sales volume represents our company and consolidated subsidiaries (Kyushu Electric Power Transmission and Distribution Company Inc. and Kyuden Mirai Energy Company Inc.) (internal transactions have been eliminated).
* Impact of the corona virus -2.0 billion kWh (no change to the previous estimate)
Note: The forward-looking statements are based on information available as of the date hereof. Actual results could differ due to numerous factors.
(Reference)
Financial Results Forecast for FY2020* (compared with the figures announced in October)
*April 1, 2020– March 31, 2021
Ordinary income is expected to be about 35 billion yen, which is about 10 billion yen lower than the earnings forecast announced in October 2020 (withdrawn in January 2021). This change is a result of increased power purchase costs caused by sudden surges in prices on the wholesale market amid the tight supply-demand balance last winter. By cost reductions we are working to offset this loss and to strengthen our balance sheet.
［Main Factors Affecting Ordinary Income］
(Consolidated)
(Billion of Yen)
| Revised | Previously announced (in October) |
Difference | Rate of change (%) |
|
| Sales | 2,130.0 | 2,060.0 | 70.0 | 3.4 |
| Operating Income | 60.0 | 70.0 | -10.0 | -14.3 |
| Ordinary Income | 35.0 | 45.0 | -10.0 | -22.2 |
| Net Income attributable to owners of the parent | 22.0 | 30.0 | -8.0 | -26.7 |
(Reference: Key Factor)
| Revised | Previously announced (in October) |
Difference | |||
| Retail electricity sales volume | 75.3 billion kWh* | 75.1 billion kWh | 0.2 billion kWh | ||
| Wholesale electricity sales volume | 10.0 billion kWh | 10.3 billion kWh | -0.3 billion kWh | ||
| Total electricity Sales Volume | 85.3 billion kWh | 85.4 billion kWh | -0.1 billion kWh | ||
| Crude Oil CIF Price | 42 $/b | 42 $/b | － | ||
| Exchange Rate | 106 ¥/$ | 106 ¥/$ | － | ||
| Nuclear Power [Transmission-end] (Capacity factor of nuclear power plants) |
21.6 billion kWh | 21.7 billion kWh | -0.1 billion kWh | ||
| (62.1%) | (62.4%) | (-0.3%) | |||
Note: Electricity sales volume represents our company and consolidated subsidiaries (Kyushu Electric Power Transmission and Distribution Company Inc. and Kyuden Mirai Energy Company Inc.) (internal transactions have been eliminated).
* Impact of the corona virus -2.0 billion kWh (no change to the previous estimate)
Revision of Financial Results Forecast for FY2020
