July 29, 2008

Tokyo Electric Expects a Loss Hot Stocks

Tokyo Electric Power, the biggest utility in Asia, projected a record loss for this business year, hurt by soaring energy prices and the indefinite closure of a quake-hit nuclear power plant.

Tepco's earnings have been hit hard since a powerful earthquake last July forced it to halt operations at its Kashiwazaki-Kariwa nuclear plant in northern Japan.

The closure of the plant, which accounts for about 13 percent of Tepco's total power capability, has forced it to increase purchases of crude and fuel oil to work its thermal plants harder, as well as buy electricity from other firms.

TEPCO said it expects a group net loss of yen280 billion for the year ending in March 2009, which is wider than the yen150.11 billion loss it posted last business year.

For its April-June fiscal first quarter, Tepco posted a net loss of yen76.24 billion, compared with a yen31.07 billion profit a year earlier.

Originally published by Reuters.

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