Hokuriku Electric Power Company FY2026 Outlook: Guidance Points to Sharp Profit Decline

Hokuriku Electric Power Company FY2026 Outlook: Guidance Points to Sharp Profit Decline

Hokuriku Electric Power Company (北陸電力株式会社, TSE:9505), a major electricity supplier to the Hokuriku region of Japan, reported a significant decline in profitability for the full year ending March 2026, with net profit falling 16.4% year-on-year to JPY 54.5bn. The company faces ongoing challenges from the shutdown of two reactors at the Shiga Nuclear Power Plant and the decommissioning of the Fukui Thermal Power Station, which have weighed heavily on its financial performance.

Key Numbers (JPY bn)

Business Overview Hokuriku Electric Power Company is a regional electricity utility serving the three Hokuriku prefectures of Ishikawa, Fukui, and Niigata. The company relies heavily on coal-fired power generation, with a significant contribution from hydropower. However, the prolonged shutdown of two reactors at the Shiga Nuclear Power Plant has increased generation costs and reduced operational flexibility.

Analysis The company’s operating profit, ordinary income, and net profit all declined year-on-year, with net profit falling by 16.4% to JPY 54.5bn. The drop in profitability is attributed to a combination of factors, including the impact of reduced nuclear generation, rising equipment-related costs, and the decommissioning of the Fukui Thermal Power Station, which resulted in impairment losses. Although revenue figures remain undisclosed, the sharp decline in ordinary income—down 6.9% to JPY 85.0bn—suggests that falling sales may have played a significant role in the performance decline.

The company’s equity ratio has also increased to 24.4% from 20.5% in the previous period, indicating a reduced reliance on debt financing. However, this does not offset the broader financial challenges the company is facing.

Next Year Guidance The company has provided preliminary guidance for the next fiscal year, indicating a sharp decline in expected performance:

Operating profit is expected to fall by 54.3% year-on-year to JPY 40.0bn, and net profit is projected to decline by 54.1% to JPY 25.0bn. These targets are considered conservative given