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Chubu Electric books ¥370.3bn nuclear charge
Chubu Electric wrote off its nuclear power fixed assets and now forecasts a ¥215.0bn net loss. Elsewhere, Komatsu and Konami raised guidance, and one Kakaku.com bidder moved its price by exactly ¥1.
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Chubu Electric's Nuclear Write-Off
Chubu Electric takes ¥370.3bn nuclear charge after withdrawing Hamaoka applications
Chubu Electric Power has written off the full carrying value of its nuclear power business fixed assets, a ¥304.9bn impairment, and added a ¥65.3bn nuclear fuel valuation loss. The ¥370.3bn in special losses for the six months to September 2026 turns its full-year forecast from a ¥160.0bn profit into a ¥215.0bn net loss.
What changed: On 25 September Chubu Electric withdrew its reactor installation change permit applications for Hamaoka Units 3 and 4. An investigation committee had reported on 11 September on what the company calls improper conduct in setting the reference seismic ground motion. Given serious doubts about the reliability of its application materials and later review responses, the company said keeping the applications was not appropriate. For its accounts it then assumed a longer shutdown, lower sales revenue after any restart and higher safety-upgrade costs. Undiscounted cash flows fell below book value, and the recoverable amount was estimated at zero. Nuclear power generation facilities went from ¥82.5bn at the end of March to zero at the end of September.
The catch: The company's results slides call the impairment an accounting judgment that does not mean Hamaoka will be decommissioned. They say the company could not explain recoverability with sufficient grounds at this point, and that it is not in a position to talk about restart. The release gives no restart timeline. An amended extraordinary report filed on 29 October put numbers on an effect that the first report in September had left undetermined.
By the numbers: Interim revenue rose 11.3% to ¥1.95tn, but the operating result swung to a ¥78.1bn loss from a ¥145.5bn profit, and the net loss attributable to owners was ¥280.5bn. The full-year ordinary profit forecast falls ¥75.0bn to ¥110.0bn. Chubu Electric expects better earnings at JERA but a worse result at its retail arm Miraiz, which it ties to timing-lag losses and higher power procurement costs linked to the prolonged Middle East situation. The full-year dividend forecast stays at ¥70.
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