Chubu Electric Power recognized impairment losses and losses on the valuation of nuclear fuel as extraordinary losses in its second-quarter results and revised its full-year earnings forecast for the fiscal year ending March 2027. Total extraordinary losses are expected to be approximately ¥380 billion, while the full-year revenue and profit outlooks were also revised downward.
In connection with the review of compliance with the new regulatory standards for the Hamaoka Nuclear Power Station, Chubu Electric Power withdrew its applications related to the new regulatory standards for Units 3 and 4, citing serious doubts about the station's reliability. This increased the uncertainty surrounding future cash flows, and the fixed assets of the nuclear power business are expected to be subject to impairment.
For the interim period, the company will recognize ¥304.9 billion in impairment losses on all fixed assets and construction in progress related to the nuclear power business, as well as ¥65.3 billion in losses on the valuation of nuclear fuel. Together, these items will result in total extraordinary losses of ¥370.3 billion, and further impairment related to capital expenditures is expected.
The full-year consolidated earnings forecast was revised. Revenue was increased by ¥42 billion to ¥4,200 billion, while ordinary profit was substantially reduced from ¥185 billion to ¥110 billion. Net income attributable to owners of the parent is expected to be ¥215 billion negative, and net income per share is expected to be ¥284.51 negative.
The overall revision, including extraordinary losses, reflects an increase in losses from timing differences and higher power procurement costs. The full-year outlook, including approximately ¥10 billion in additional impairment related to capital expenditures from the third quarter onward, is expected to amount to approximately ¥380 billion.