Hokkaido Electric Power Company, Incorporated Revises FY2026 Earnings Upward
Hokkaido Electric Power Company, Incorporated raised its consolidated earnings forecast for fiscal year 2026 across all profit lines, citing higher fuel costs and tariff adjustments.
| Item | Before (July) | After (September) | Change |
|---|---|---|---|
| Revenue | JPY 970bn | JPY 1,025bn | +JPY 55bn |
| Operating Profit | JPY 48bn | JPY 61bn | +JPY 13bn |
| Ordinary Income | JPY 30bn | JPY 46bn | +JPY 16bn |
| Net Profit | JPY 22bn | JPY 33bn | +JPY 11bn |
| Retail Power Sales | 379 billion kWh | 379 billion kWh | Unchanged |
| Crude Oil CIF Price (Sept. onwards) | USD 85.0/bbl | USD 110.0/bbl | +USD 25.0/bbl |
The utility attributed the upward revision to three factors: increased fuel cost pass-through adjustments reflecting higher commodity prices; growth in third-party power sales; and tariff adjustments by Hokkaido Electric Power Network reflecting inflation and interest rate impacts. The crude oil price assumption was raised by USD 25 per barrel to USD 110, reflecting market conditions.
The revision demonstrates how Japan’s regulated utility model allows cost recovery through tariff mechanisms. Hokkaido Electric Power Company, Incorporated maintained its dividend guidance unchanged, keeping the dividend payout ratio (DOE) at the prior 1.8% level. International investors should note that ordinary income (keijo rieki), a Japan-specific metric, differs from operating profit by including financial income and expenses; the JPY 16bn increase in ordinary income reflects this broader measure of profitability beyond core operations.
Source: Original filing (TDnet) | 日本語版
This article is for informational purposes only and does not constitute investment advice. Always verify against the original filing.