JAPAN NEWS


 

Japan’s largest power generator JERA Co. announced Monday that it would postpone the release of its earnings forecast for fiscal 2026 due to the situation in the Middle East.

The company said it has secured the fuel necessary for thermal power generation through July but indicated that electricity rates charged by power companies will likely rise from this summer due to soaring fuel prices.

Electricity generated by JERA is sold on the Japan Electric Power Exchange and can be purchased by retail electricity providers.

Some companies make a contract directly with JERA, giving the power supplier significant influence over electricity rates. Since electricity rates reflect the price of fuel three to five months prior, rates are expected to rise gradually from June.

This is the first time JERA has decided not to announce its earnings forecast since fiscal 2022, when Russia began its aggression against Ukraine.

“We will cope with soaring prices and secure a stable fuel supply,” JERA Financial Strategy and Planning Division head Masato Otaki said during an online press conference.

JERA, which adopted International Financial Reporting Standards, announced its consolidated financial results for fiscal 2025 on Monday. The results showed ¥3.05 trillion in sales, down 9.1% from the previous fiscal year, and ¥193.5 billion in profit, which was up 5.2%.

Since the price of electricity sold is linked to fuel prices, the company’s sales declined due to falling liquefied natural gas and coal prices. However, the profit increased because the company was able to secure fuel at lower prices.