Chubu Electric Reports ¥370B Loss, Revises Forecast

Chubu Electric Power Company announced a substantial ¥370.3 billion loss for the first half of fiscal year 2027, stemming from significant impairment losses related to its Hamaoka nuclear power plant. The company revised its full-year forecast, now anticipating a ¥3.8 billion net loss, a dramatic reversal from its previous projection of a ¥160 billion profit.

The impairments reflect growing uncertainty surrounding the future of the Hamaoka plant. Following revelations of manipulated seismic data used in its application for regulatory approval—and a subsequent withdrawal of that application—Chubu Electric determined that maintaining its prior application was untenable. This has led to a reassessment of the plant’s future viability and a resulting write-down of its fixed assets. The company recognized a ¥304.979 billion impairment loss on its nuclear power assets and a ¥65.339 billion loss on nuclear fuel.

Beyond the impairment charges, Chubu Electric cited a challenging operating environment, including geopolitical factors impacting fuel costs, and a shift in the timing of gains and losses related to fuel hedging. While JERA, its joint venture, saw improved performance, this was offset by headwinds in its power grid business related to declining demand and rising costs. The company’s revised full-year forecast also accounts for an additional ¥10 billion in potential impairment losses related to future maintenance investments at the nuclear facility.

The operating results reveal a decline in profitability despite a 7.7% increase in consolidated sales to ¥4.2 trillion. The company’s ordinary profit fell to ¥110 billion, down from ¥185 billion in the prior period. The prior year's interim profit of ¥151.275 billion has been replaced by a loss of ¥267.127 billion. These results underscore the significant financial impact of the Hamaoka situation and the broader challenges facing the Japanese utility sector.

Chubu Electric’s results reflect the increasing financial risks associated with nuclear power, particularly in the wake of regulatory scrutiny and public concerns over safety. The company’s substantial write-down serves as a cautionary tale for other utilities with significant investments in nuclear assets, while the revision of its outlook highlights the challenging environment for energy companies in Japan.