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Thursday, Aug. 2, 2012

Tepco logs ¥288.39 billion group net loss for the April-June quarter

Kyodo

Tokyo Electric Power Co. on Wednesday reported a group net loss of ¥288.39 billion for the April-June quarter due to costs stemming from the catastrophe at the Fukushima No. 1 nuclear power plant, and revised downward its earnings projections for the full fiscal year.

The quarterly net loss compares with a loss of ¥571.76 billion incurred the year before, said the utility, which fell under effective government control Tuesday by receiving ¥1 trillion in public funds.

Tepco registered an operating loss of ¥108.84 billion for the first quarter of fiscal 2012, compared with a loss of ¥52.05 billion a year earlier. Revenue rose 15.6 percent to ¥1.31 trillion.

The government bought more than 50 percent of the company's voting shares to prevent its bankruptcy and help it compensate people and companies affected by the nuclear disaster, scrap the crippled Fukushima reactors and continue supplying electricity without interruption.

Its financial standing was also hit by increasing fossil-fuel costs to make up for the loss of nuclear power.

For the full year, Tepco projects a group net loss of ¥160 billion and an operating loss of ¥305 billion.

It expects revenue to increase by 11.7 percent to reach ¥5.98 trillion.

Massive bank loans

Banks provided Tokyo Electric Power Co. with ¥370 billion in loans Wednesday to help the utility continue producing a stable supply of electricity while dealing with the Fukushima nuclear crisis, sources said.

The loans come on top of the government's ¥1 trillion capital injection into the firm, which has been struggling since the March 2011 disasters.The lenders include Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui Banking Corp. and Mizuho Corporate Bank as well as the government-owned Japan Development Bank.

The loans comprise ¥200 billion in new loans and ¥170 billion in refinancing.

Banks plan to give Tepco a total of ¥1 trillion in loans, including those provided Wednesday, to support the power supplier until it becomes able to issue corporate bonds, according to the sources.



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