JERA Posts Higher Annual Profit
JERA Co Inc has reported JPY 193.5 billion ($1.23 billion) in profit for its 2025 financial calendar (April 2025-March 2026), up 5.2 percent year-on-year.
The figure included JPY 9.8 billion in time-lag profit resulting from the time difference between changes in fuel prices and their reflection in sales prices. The time-lag effect decreased.
"Profit excluding the time lag increased mainly due to the impact of fuel procurement prices and an increase in profits in overseas power generation and renewable energy business, despite a decrease in fuel business profit and the impact of opening fuel inventory unit prices", the Japanese integrated power and gas utility said.
Adjusted revenue fell JPY 305.9 billion to JPY 3.05 trillion due to lower prices for sold electricity. Adjustments amounted to JPY 1.41 trillion including "headquarter expenses and consolidation adjustments such as intersegment eliminations".
The domestic thermal power generation and gas segment - which includes fuel procurement and storage, as well as power and gas sales - accounted for JPY 3.98 trillion of pre-adjustment revenue, lower by JPY 289.9 billion.
The fuel segment - which involves upstream development, fuel transport and fuel trading - contributed JPY 413 billion, up JPY 6.7 billion.
The overseas power generation and renewable energy segment comprised JPY 69.4 billion of revenue, down JPY 3.2 billion.
Operating profit across segments rose JPY 35.1 billion to JPY 275.9 billion. Operating expenses dropped JPY 275.4 billion to JPY2.89 trillion due to lower fuel costs.
Profit before tax was JPY 291.6 billion, up JPY 13.4 billion as the increase in profit excluding time lag offset higher tax expenditure.
Operating cash flow climbed JPY 20.6 billion to JPY 425.8 billion. Free cash flow improved JPY 70.6 billion to JPY 40.4 billion, compared to a negative JPY30.1 billion for the prior year.
JERA ended the financial year with JPY 1.12 trillion in cash and cash equivalents, down JPY 136.9 billion from the prior year.
"Due to the impact of the situation in the Middle East and other factors, the outlook for resource prices and fuel procurement remains uncertain", JERA said. "As it is currently difficult to reasonably estimate our financial performance, we have not yet determined our earnings forecast for FY2026".
To contact the author, email jov.onsat@rigzone.com
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