Japan nuclear plant operator posts 1-billion-dollar loss

Feb 13, 2012, 9:04 GMT

Tokyo - Tokyo Electric Power Co (TEPCO) booked a quarterly operating loss of 83.8 billion yen (1.08 billion dollars) on mounting fuel costs for thermal power to replace decreased nuclear generation after last year's atomic accident, the company said Monday.

The figure was a reversal from an operating profit of 91.1 billion yen in the October-December quarter of 2010, the operator of the Fukushima Daiichi Nuclear Power Station said.

The March 11 earthquake and tsunami causing a series of blasts and fires at the plant that triggered massive release of radioactive material into the environment. Three of the six reactors suffered meltdowns, and more than 80,000 residents were forced to leave the area.

TEPCO also posted a net profit of 4.29 billion yen for the quarter, compared to a net profit of 47.6 billion yen a year earlier. Sales were up 3.9 per cent to 1.3 trillion yen for the period, from 1.25 trillion yen.

The company projected a net loss of 695 billion yen for the financial year through March, larger than the 600-billion-yen net loss that the utility had predicted three months ago.

It also projected an operating loss of 265 billion yen on expected sales of 5.28 trillion yen.

In late January, TEPCO suspended reactor 5 of its Kashiwazaki-Kariwa Nuclear Power Plant, leaving only one out of a total of 17 reactors run by the utility in operation, it said.

All 17 reactors will go offline by the end of March, when reactor 6 at the plant is halted for checkups.

Only three of the nation's 54 reactors are in service as utilities have been unable to restart them after shutdowns for regular inspection, accidents or maintenance.

The reactors have remained idle amid growing public concerns about atomic power following the disaster at the Fukushima plant.

On Monday, the government approved a request for 690 billion yen of aid for TEPCO, which faces claims from victims.

That will raise the total amount of government aid to the company to more than 1.5 trillion yen.

Shares in the utility closed up 0.5 per cent at 201 yen Monday. The stock has lost 91 per cent of its value since last year's high of 2,197 yen.

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