JERA profit climbs in FY 2026 despite 9.1% revenue drop

Its sales fell sharply under weaker electricity pricing across its core power business.

JERA’s net profit attributable to owners of the parent rose to $1.21b (JPY193.5b) in the financial year ended 31 March 2026 (FY2025), up 5.2% from the $1.15b (JPY183.9b) in the previous year.

The company said in its financial report that lower fuel costs and stronger performance in overseas power and renewable energy offset the 9.1% revenue decline to $19.10b (JPY3.05t), linked to weaker electricity selling prices.

Its operating profit swelled to $1.73b (JPY275.9b) from $1.51b (JPY240.7b).

Profit excluding the time-lag effect increased to $1.15b (JPY183.6b) from $900m (JPY143.7b), whilst the time-lag effect on profit dropped to $61m (JPY9.8b) from $250m (JPY40.1b).

Operating cash flow rose to $2.67b (JPY425.8b) from $2.54b (JPY405.1b) as free cash flow improved to $250m (JPY40.4b) from a negative $19b (JPY30.1b) in the prior year.

Total assets increased to $62.56b (JPY9.99t) from $53.73b (JPY8.58t), driven by higher derivative assets and changes in investment accounting.

Liabilities rose to $42.09b (JPY6.72t) from $35.00b (JPY5.59t), whilst equity increased to $20.42b (JPY3.26t) from $18.73b (JPY2.99t).

Within segments, the fuel business recorded lower profit of $620m (JPY98.3b) versus $770m (JPY122.7b) in FY2024.

Overseas power generation and renewable energy profit increased to $80m (JPY12.7b) from $50m (JPY8.3b), whilst domestic thermal power generation and gas profit slipped to $770m (JPY122.5b) from $780m (JPY124.3b).

The company cited lower fuel procurement costs and higher earnings in overseas power generation and renewable energy as contributors to profit excluding the time-lag effect.

It also recorded lower fuel business profit and an impact from opening fuel inventory unit prices.

FY2026 financial guidance has not been set due to uncertainty in resource prices and fuel procurement conditions linked to the situation in the Middle East.

(US$1 = JPY159.67)