Kansai Electric anticipates largest-ever net loss

Kansai Electric expects its highest-ever group net loss of US$3.09 billion for fiscal 2011 ending next month due to expanding fossil fuel purchases.

Japanese power utilities have increased fossil fuel purchases as nuclear reactors suspended for checkups have remained unable to restart operations. Kansai Electric, which had heavily depended on nuclear power generation, has suspended all its 11 nuclear reactors.

The company's first loss in two years compares with a profit of US$1.5 billion posted in the previous year. Consolidated sales are estimated to increase to 2.81 trillion yen from 2.77 trillion yen.

The earnings deterioration prompted the company to cut executive pay 15 percent for regular directors and 10 percent for outside directors for the immediate future from March.

On an unconsolidated basis, Kansai Electric estimates a net loss of 265 billion yen for fiscal 2011, against a profit of 103.33 billion yen in the previous year.

For the source of tghis story, click here.