Chubu Electric Power has written off the full carrying value of its nuclear power business fixed assets, a ¥304.9bn impairment loss, and added a ¥65.3bn nuclear fuel valuation loss. The special losses total ¥370.3bn in the six months to September 2026 and turn the company's full-year forecast from a ¥160.0bn profit to a ¥215.0bn net loss.
From a seismic-review failure to a write-off
The chain starts with what the company calls an improper conduct case in setting the reference seismic ground motion for the new-standards safety review of Hamaoka Units 3 and 4. On 11 September 2026 an investigation committee delivered its report to the company. Chubu Electric said that, given serious doubts about the reliability of its application materials and its later review responses, keeping the earlier application was not appropriate. On 25 September it withdrew the reactor installation change permit applications for the two units, along with related filings. For readers who missed the first round, the Earlier Tokyo Brief coverage is linked here.
The company says the case has raised uncertainty over restart timing and safety-upgrade construction costs, and that identifying a future business scenario is now difficult. For accounting purposes it still had to estimate cash flows from the information available at the interim close. It assumed a longer shutdown, lower sales revenue after any restart and higher safety-upgrade costs. Those undiscounted cash flows fell below the book value of the nuclear fixed assets, and the recoverable amount was estimated at zero.
The balance sheet shows it. Nuclear power generation facilities went from ¥82.5bn at the end of March to zero at the end of September, and loaded nuclear fuel from ¥40.0bn to zero. Fuel in processing fell from ¥165.9bn to ¥130.4bn.
A writedown, not a closure
Chubu Electric's results slides say the impairment is an accounting judgment and does not mean Hamaoka will be decommissioned. They say simulations exist in which costs would be recovered, but the company could not explain recoverability with sufficient grounds at this point. The slides add that it is not in a position to talk about restart, and that preventing recurrence and rebuilding trust come first. The release gives no restart timeline.
Booked losses and what is still forecast
The ¥370.3bn is already booked. The full-year special-loss forecast of about ¥380bn is larger because the company expects to record impairment on nuclear maintenance and other capital spending from the third quarter onward, estimated at about ¥10bn.
| Item | Booked at interim | Full-year forecast |
|---|---|---|
| Impairment loss | ¥304.9bn | about ¥315.0bn |
| Nuclear fuel valuation loss | ¥65.3bn | about ¥65.0bn |
| Total special loss | ¥370.3bn | about ¥380.0bn |
A filing amendment fixes numbers that were open before. The extraordinary report first filed on 11 September said the effect on current and future results was undetermined. The amended report, filed on 29 October, puts the consolidated impact at ¥304.98bn of impairment and ¥65.3bn for nuclear fuel. On a stand-alone basis the impairment is ¥307.0bn. The interim income statement shows an impairment line of ¥305.1bn and total special losses of ¥370.5bn, slightly above the release's rounded figures.
The guidance reset
The revision goes beyond the nuclear charge. The ordinary profit forecast falls ¥75.0bn to ¥110.0bn. Chubu Electric expects better earnings at JERA, its equity-method affiliate, but a worse result at its retail arm Miraiz from larger timing-lag losses and higher power procurement costs, which it links to the prolonged Middle East situation. Revenue is raised ¥300.0bn to ¥4.20tn on higher fuel prices and fuel cost adjustments.
| Item | Previous | Revised | Change |
|---|---|---|---|
| Revenue | ¥3.90tn | ¥4.20tn | +¥300.0bn (+7.7%) |
| Ordinary profit | ¥185.0bn | ¥110.0bn | -¥75.0bn (-40.5%) |
| Net profit attributable to owners of parent | ¥160.0bn | -¥215.0bn | -¥375.0bn |
| Earnings per share | ¥211.81 | -¥284.51 | -¥496.32 |
The interim figures show the pattern. Revenue rose 11.3% to ¥1.95tn, but the operating result swung to a ¥78.1bn loss from a ¥145.5bn profit. Ordinary profit fell 79.1% to ¥41.0bn, and the net loss attributable to owners of the parent was ¥280.5bn, or ¥371.25 a share. In Chubu Electric's segment reporting, ordinary profit from JERA rose to ¥134.8bn from ¥78.6bn, while Miraiz swung to a ¥103.8bn ordinary loss from a ¥95.6bn profit. The equity ratio fell to 38.5% from 41.0% at the end of March.
The interim dividend is ¥35 a share, unchanged, with the full-year forecast kept at ¥70.