TEPCO’s 570 billion Yen loss – then trillions in compensation

It is expected to become necessary for TEPCO to seek further loans from banks and support from the government to cover the nuclear crisis-related compensation, which is said to reach several trillion yen

TEPCO to see Y570 bil net loss, excluding nuclear compensation   Japan Today  06  June, :Tokyo Electric Power Co is expected to post a parent-only net loss of 570 billion yen for the business year to March 2012, excluding compensation to those affected by the ongoing crisis at its crippled Fukushima Daiichi nuclear power plant, according to an internal document.

TEPCO anticipates the huge loss as fuel costs are expected to expand by 830 billion yen due to the suspension of operations at the Fukushima Daiichi nuclear plant and shifts to thermal power generation, according to the document about estimates of unconsolidated earnings for the current business year. The company suffered an unconsolidated net loss of 1,258.5 billion yen for the year to last March.

The expected net loss does not cover compensation over the nuclear crisis as it is difficult for the company to calculate it at this time. …..The amount of cash and deposits held by TEPCO is expected to fall below 100 billion yen at the end of March 2012 from about 2.1 trillion yen at the end of last March. The company is facing difficulties in raising funds by issuing corporate bonds as their rating was lowered to junk bond status.

It is expected to become necessary for TEPCO to seek further loans from banks and support from the government to cover the nuclear crisis-related compensation, which is said to reach several trillion yen…..http://www.japantoday.com/category/business/view/tepco-to-see-y570-bil-net-loss-excluding-nuclear-compensation

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June 6, 2011 - Posted by Christina Macpherson | business and costs, Japan