business

TEPCO returns to profit on bailout, rate hikes

29 Comments

The operator of Japan's crippled Fukushima nuclear plant said Wednesday it swung to a net profit in the quarter to June after a government bailout and electricity rate hike.

Tokyo Electric Power Co (TEPCO) said it posted a net profit of 437.9 billion yen in the April-June period, reversing a 288.3 billion yen loss in the same quarter a year earlier.

TEPCO was effectively nationalised a year ago with a huge injection of government money to keep it afloat. In the quarter alone, the company received 666.2 billion yen from Tokyo.

The company faces massive compensation and clean-up costs after the Fukushima nuclear disaster two years ago.

During the quarter, TEPCO said sales climbed to 1.44 trillion yen, up from 1.31 trillion yen, mainly owing to a government-approved electricity rate hike.

It still posted a pre-tax loss of 29.49 billion yen, down from 124.27 billion yen a year earlier.

© (C) 2013 AFP

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29 Comments
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So what pockets is this money going to line ?? Still people who are owed property and relocation plus the festering sore of Fukushima that keeps growing that could use a huge injection of this surplus.

6 ( +6 / -0 )

Tokyo Electric Power Co (TEPCO) said it posted a net profit of 437.9 billion yen in the April-June period, reversing a 288.3 billion yen loss in the same quarter a year earlier.

So if these figures are accurate then.....

TEPCO was effectively nationalised a year ago with a huge injection of government money to keep it afloat. In the quarter alone, the company received 666.2 billion yen from Tokyo.

They should be returning every yen of profit back to the national government in repayment for the "loan" of taxpayers (MY) yen and then next will be the remaining balance.

The shareholders will just have to wait in line. In my opinion TEPCO should not be showing ANY so-called profits until all compensation is paid, AND the cleanup of Fukushima is 100% complete.

If their executives receive bonuses because of this so-called "profit", heads should be rolling.

12 ( +12 / -0 )

"If their executives receive bonuses because of this so-called "profit", heads should be rolling."

The problem here is that they stopped paying bonuses to TEPCO executives, it has been in the news numerous times!

-1 ( +1 / -2 )

So why do they keep on raising rates? Why aren't they paying all the victims of Fukushima? Why are skimping on decontamination and clean up? Why? Because they're corrupt and criminal.

The problem here is that they stopped paying bonuses to TEPCO executives, it has been in the news numerous times! They just paid a 100,000 yen bonus to ALL of its managers this April. Plus, there was a news story just last month that they were actually going to raise salaries.

2 ( +2 / -0 )

Great...now they can pay the tax payers back right?...

4 ( +4 / -0 )

SauloJpn -Apart from the management summer "special" bonus that was reported in the news last week.

Yubaru - competely agree..thats over $4 billion quarterly profit while the evacuees are still waiting for their compensation / relocation dues...I say put the whole amakudari infested past and present top managment into a " temporary" housing complex from the next financial quarter and let them live / work from there until the compensation payments are completed....I bet the money would magically find its way from TEPCO coffers to the evacuees real quick. I say put this to the Tepco management next time they come begging for more taxpayer money while "humbly " asking the public for "understanding and co operation".

3 ( +3 / -0 )

Unbelievable , causing the biggest, worst disaster ever , sucking tax payers money?Yet still making a profit. Corruption at the highest level. Get out if you can, there is no future here.

5 ( +6 / -1 )

Everybody can make profit when sucking tax payer money to cover your running operations and rule on a monopoly business model for your income, nothing to be proud of first. Now lower the rate and payback the tax payer.

4 ( +4 / -0 )

So when are there payments for the loan going to start?? TEPCO and the government, just shocking that the public allows this joke to continue.

0 ( +3 / -3 )

How much of this money will go to fukushima?

4 ( +4 / -0 )

I'll be looking forward to a refund of my electricity charges, and portion of tax that have been funded this companies on going operation..... Oh wait for some reason in the modern world, and not just in Japan, massive companies are allowed to operate with care but no real responsibility, take loans from public money, increase rates and more or less operate above the law.

Imagine what would happen to me as individual if I did any of the things Tepco has, I would be in jail, probably for life..

2 ( +3 / -1 )

Bunch of scroungers. Fukushima will never return to the state before 311.

2 ( +2 / -0 )

That money would buy about 14,500 permanent homes for the displaced (figuring a cost of ¥30,000,000 per home).

That's not going to happen though, is it. Simply too muzukashii.

3 ( +4 / -1 )

What a scam! TEPCOs assets should have been sold off and the people who lost their homes and livelihoods bailed out instead. It amazes me that the Japanese people let TEPCO and their elected government continue to get away with this.

1 ( +1 / -0 )

I'm pretty sure if humanity survives a few hundred years down the road we'll all be shaking our heads and wondering how on earth a company like TEPCO could happen. There will likely still be politicians shrugging and saying "it can't be helped", but still.

TEPCO should never be allowed to make ANY profits until they've paid off what they owe in compensation and have gotten their act together as a whole -- neither of which will ever happen.

-1 ( +2 / -3 )

How can a bankrupt company turn over a profit? Their 400 billion yen profit should be used to pay back the tax payers money. Or, it should at least be used to get the displaced residents compensated and back into real housing. Or, how about dropping the price of electricity. This company should never be allowed to turn over a profit and keep it!

0 ( +2 / -2 )

TEPCO now should speed up the clearing of claims.

2 ( +2 / -0 )

How is this possible? Aren't there still billions of dollars worth of compensation payouts to be made? The corruption of this company knows no bounds.

0 ( +1 / -1 )

What does 'effectively nationalized' mean?

Eitehr the tax payer now owns TEPCO, i.e. the government bought it out with tis bailout, or they were given Loans by the government.. which is it?

-2 ( +0 / -2 )

Tepco should not be allowed to make a profit, all that money should be given back to the tax payers and or people in Fukushima that ARE STILL LIVING in temp housing

1 ( +2 / -1 )

The problem here is that they stopped paying bonuses to TEPCO executives, it has been in the news numerous times!

Read what I wrote again please. I KNOW this, but you may notice that is PAST TENSE and I wrote IF they receive any bonuses, (as this is the bonus season NOW) and since they showed a "so-called" profit. Things change quickly and may not be reported to or by the press either.

It is not always public or common knowledge, they are not public officials and there is no requirement to publish how much if any bonus was or would be paid.

They only stopped paying bonuses BEFORE because of public outrage, but that does not guarantee that it will be permanent.

0 ( +0 / -0 )

As much as I hate TEPCO and the people who run the company the title is misleading to those who don't understand the detailed figures. They are still running a pre-tax loss of 29 billion yen so their business is still losing money even after the rate hikes The Government bailout money for the nuclear power plant disaster of 666 billion yen puts their net p&l positive. People should be more concerned with the rising cost of imported carbon fuel which cannot be offset without nuclear energy over the next decades, like it or not.

0 ( +2 / -2 )

What a scam! TEPCOs assets should have been sold off

If you look carefully to their last 2 years fiscal report so from 3/11 to now (available at their website), you'll see that TEPCO did manage to continue to grow their TOTAL ASSETS, which does speak volume.

0 ( +0 / -0 )

Increases in profit for the shareholders, the question is who are he share holders? And below, I want to know what other assets they have that are not declared to the public. I thought TEPCO had no money and was going bankrupt, they have something tucked away by the looks of it.

Since 2000 they have made $400 Billion + with their ventures, TTNET, not sure how much was made since they bought 5% stake in Japanetbanking in the year 2002. Japanetbanking, Its stakeholders, including parent company Sumitomo Mitsui Banking Corporation (SMBC) and NTT DoCoMo (provider of i-mode), were all big companies from different industry sectors. This stakeholder base gave JNB market exposure and access to their established customer bases. By April 2001 JNB had 130,000 customers. It aimed at winning one million accounts and ¥1 trillion deposits by 2002.

The Tokyo Electric Power Co., Inc. (TEPCO, www.tepco.co.jp, 5% stake in Japan Internet banking) Tokyo Electric Power was the world’s largest private electric power company, serving 26 million customers in Japan’s Kanto area, including Tokyo. To diversify its operations as deregulation opened up part of the market to other electric suppliers, by 2001 TEPCO was moving into telephony and Internet services. It owned a major stake in Tokyo Telecommunication Network (TTNet), which provided local and long-distance phone services, and had partnered with nine other Japanese electric power companies to create PNJ Communications, a potential rival to NTT. TEPCO’s revenues in the fiscal year ending 31 March, 2000, stood at more than US$40 billion.

0 ( +0 / -0 )

According to law, TEPCO does not owe any money. Its liability is limited to ¥120 billion, regardless of the eventual costs of the TEPCO made nuclear disaster.

The cost of decontamination work to date is about ¥20 billion and will continue to increase. The gov't asked TEPCO to pay ¥12 billion but it refused.

The ¥5-¥10 trillion needed to pay compensation to the victims of the nuclear disaster will be paid out of public funds. After two and a half years, most of the victims are still waiting for their compensation so they can start rebuilding their lives. There seems to be no clear date when they'll receive it? In the meantime, so many are struggling to pay mortgages on homes they can no longer live in, and monthly car payments for cars they can no longer drive.

The eventual ¥50+ trillion it will take to clear up the nuclear disaster and decommission the reactors will also be paid out of public funds.

TEPCO have spent billions rebuilding its second Fukushima nuclear plant with little hope of ever getting permission to restart any of the four reactors there.

TEPCO have billions on the nuclear disaster site trying to find solutions to the many difficult problems its facing there, and although it has successes it also has had more failures, especially with the ever increasing volume of highly radioactive water from cooling the reactors, some of which leaks into the basements and the volume increased with leaking ground water. Recently, TEPCO have finally admitted some of that highly radioactive water is leaking out into the ocean.

TEPCO have stopped using two water cleaning units, one built by a French company and another built by an American company. They are using a third unit built by I don't know, and building a four unit which is suppose to be operational by the autumn.

TEPCO have spent billions but haven't even been able to tackle the most serious of problems like locating the melted nuclear fuel and coming up with a way to remove it. The radiation levels inside reactor buildings 1-3 is just too high for worker to safely spend any time inside. The level on the top area of the No3 reactor building is 2 SIEVERTS/hour. The levels around the site are up to 10-15 SIEVERTS/ hour.

Recently, also TEPCO have admitted the steam spotted coming out of the No3 reactor building is coming from the reactor containment vessel which makes it more serious than the original excuse of rainwater falling onto a hot container.

TEPCO will make applications to the NRA to restart four reactors at its Niigata nuclear plant but it hasn't resolved the opposition from the governor there.

No matter how much profit TEPCO makes, its liability will still be limited to ¥120 billion. For many, that isn't acceptable with the nuclear disaster costing trillions from the public fund.

TEPCO should have been sold off, lock stock and barrel and left with just dealing with its own made nuclear disaster.

4 ( +5 / -1 )

10-15 SIEVERTS/ hour.

Sure you got that right?, That is a very very very high dose rate.

0 ( +0 / -0 )

@scoobydoo

10-15 SIEVERTS/ hour. Sure you got that right?, That is a very very very high dose rate.

Yes, I know bit correct! This is a recent rad map issued by TEPCO. The measurements are in millisieverts/hour. See the one with the red circle on the left is 10,000 millisiverts/hour or 10 SIEVERTS/hour.

http://4.bp.blogspot.com/-ho2R8LOQyK8/Ue88xoQ6ZaI/AAAAAAAAF88/uvZoY5yk9dQ/s1600/FukushimaHighRadiationSpots-outside.JPG

The radiation levels inside the reactor buildings are up to 15 SIEVERTS/hour with the highest levels inside the Torus Room because of the highly radioactive water and its possible some of the melted fuel is in there.

The radiation level on the exposed top level of the No3 reactor building is 2 SIEVERTS/hour which can only suggest radiation is leaking from the reactor containment vessel or a nuclear fuel rod is in the debris below it?

1 ( +2 / -1 )

This is great news! A rising tide lifts all ships, and the recovery is happening apace. The people in Tohoku must have felt a heartful cheer when they heard this news.

-2 ( +0 / -2 )

I think they more likely felt " heartful" anger rising ,hearing about the comany responsible for their misery reporting a $$ billion profit while they languish in " temporary" accomodation and their compensation process is draggin on. @miyaguchatabi - Maybe you should go up there and doublecheck on their "hearful cheers" before posting....

0 ( +0 / -0 )

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