Q1 loss widens, led by fuel-cost adjustments and higher costs

First-quarter consolidated revenue was ¥48,819 million, down ¥1,690 million, or 3.3%, from ¥50,509 million in the same quarter of the previous year. Operating results, meanwhile, went from a ¥1,058 million loss in the same quarter of the previous year to a ¥6,872 million loss, widening the loss by ¥5,814 million. Ordinary loss was ¥7,097 million and net loss attributable to owners of the parent was ¥7,292 million, showing a much larger deterioration in profit than in revenue.

The factors behind the change in consolidated ordinary profit shown in the earnings presentation were a negative ¥2,594 million impact from the fuel-cost adjustment system, a negative ¥1,556 million from higher fuel costs, a negative ¥1,241 million from higher purchased electricity costs and a negative ¥400 million from Other. The total of these four items was a negative ¥5,791 million, close to the ¥5,814 million deterioration in the operating loss from the previous year. In the second-quarter results, we will verify, using the same breakdown by factor, whether the decline in revenue caused by the time lag under the fuel-cost adjustment system continued or whether increases in fuel prices and purchased electricity costs eased.

In the non-consolidated cost breakdown, fuel costs were ¥18,535 million, up ¥1,556 million year on year, while purchased electricity from other companies was ¥10,228 million, up ¥1,241 million. The non-consolidated operating loss also reached ¥7,109 million, with the cost burden of the electricity business essentially determining consolidated results. Ordinary loss and loss before income taxes and other adjustments were both ¥7,097 million, and at least in the first-quarter disclosure, no extraordinary gains or losses were shown between the two.

Next time, we will confirm how much the three items of the fuel-cost adjustment system, fuel costs and purchased electricity costs improved or deteriorated in the cumulative second quarter. As of the first quarter, the company had not disclosed the consolidated operating margin, details of selling, general and administrative expenses or quarterly cash flow, so it will also be necessary to confirm whether improvement in the factors affecting profit is reflected in both actual earnings and cash generation.