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Page added on January 30, 2008

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Tokyo Electric Expects Record Loss on Oil, Gas Costs

Jan. 30 (Bloomberg) — Tokyo Electric Power Co., forced to shut the world’s biggest nuclear plant after an earthquake, predicted a record loss for the year ending March because of higher costs for oil and natural gas.

Asia’s biggest utility expects a net loss of 155 billion yen ($1.5 billion) in the year ending March 31, compared with the 95 billion yen loss it forecast in October, the company said in a statement today. The forecast loss, the first in 28 years, is the biggest since the utility started announcing consolidated earnings in the year starting April 1, 1994.

Tokyo Electric’s stock has slumped 27 percent since last year’s costliest global disaster on concern that higher fuel oil and natural gas costs will erode earnings. The utility on Oct. 31 said it will spend 164 billion yen to repair the station, which has been shut indefinitely after the July 16 quake.

“Fuel costs are leaping far more than we expected,” Managing Director Masaru Takei told reporters Tokyo today. “Spikes in oil prices force us to pay more for liquefied natural gas as well. Sellers are taking a tough stance to increase their fuel prices.”


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