By Katya Golubkova and Yuka Obayashi
TOKYO (Reuters) -Japan’s top nuclear power operator, Kansai Electric Power, on Thursday lifted its annual profit forecast by 22% on higher electricity demand and stronger-than-expected earnings at its fuel trading unit.
For the current fiscal year to end-March 2026, net profit is now seen at 360 billion yen ($2.4 billion), up from 295 billion.
The upgrade is driven by KE Fuel Trading Singapore, which mainly trades liquefied natural gas, Hironori Kakiguchi, Kansai’s accounting and finance general manager, told reporters.
Kansai, in which U.S. activist investor Elliott has recently become a large minority shareholder, also increased its full-year dividend forecast to 75 yen per share from the previously expected 60 yen.
Kakiguchi said it is considering introducing a consolidated payout ratio target of 25-35% and an around mid-30% equity ratio target beginning in the next fiscal year.
The company declined to comment on discussions with any individual shareholders, including Elliott.
For the six months to end-September, Kansai Electric posted net profit of 233 billion yen, in line with a year earlier.
In contrast, Tokyo Electric Power Company Holdings (TEPCO), which is still paying compensation after the 2011 Fukushima nuclear disaster, reported its largest first-half net loss since adopting consolidated accounting in fiscal 2020, at 712.4 billion yen.
“We want to get cash flow back into the black as soon as possible by restarting the No.6 unit of the Kashiwazaki-Kariwa nuclear power plant and cutting costs,” Hiroyuki Yamaguchi, TEPCO’s representative executive vice president, said on Thursday.
He gave no timeline for restarting the reactor as discussions continue with the governor of Niigata where the plant is located. This month, TEPCO informed the prefecture it would contribute 100 billion yen and consider decommissioning No.1 and No.2 units at Kashiwazaki-Kariwa.
($1 = 150.7800 yen)
(Reporting by Yuka Obayashi and Katya Golubkova; Editing by Clarence Fernandez and Kirsten Donovan)
