Japanese utilities book special gains by selling nuclear fuels

Chugoku Electric Power Co

31/10/2024 11:42

TOKYO, Oct 31 (Reuters) - Japan's Hokkaido Electric
Power  9509.T  and Chugoku Electric Power  9504.T  said on
Thursday they had booked extraordinary profits for the
April-September period from selling previously acquired nuclear
fuel.
    Neither utility has been able to restart any nuclear power
plants since the 2011 Fukushima nuclear disaster which prompted
stricter safety standards in Japan.
    Hokkaido Electric booked a special profit of 19 billion yen 
($124 million) for the six months ended Sept. 30 by selling
nuclear fuel acquired through long-term contracts.
    It began selling some of its fuel in the 2021 fiscal year,
booking extraordinary gains of 5.7 billion yen in 2022 and 3.3
billion yen in 2023, according to a company official.
    "We've started selling the fuel as nuclear power has been
re-evaluated globally and resource prices have risen," the
official told reporters, declining to name the buyers. 
    Chugoku Electric recorded a 12.1 billion yen special profit
from nuclear fuel sales in the April-September period, stating
that the initiative, begun last year, aims to strengthen its
financial base.
    Earlier this week, Tohoku Electric Power  9506.T  resumed
the operation of the No.2 reactor at its Onagawa nuclear power
plant in northern Japan for the first time in over 13 years.
    Many Japanese utilities are still going through a
re-licensing process to comply with the stricter safety rules.
    Chugoku Electric plans to restart the No.2 reactor at its
Shimane nuclear power station later this year while Hokkaido
Electric is proceeding with a review process to restart its
Tomari nuclear power station, though the timing remains
uncertain.
    
($1 = 152.6800 yen)

 (Reporting by Yuka Obayashi; Editing by Kirsten Donovan)
 ((Yuka.Obayashi@thomsonreuters.com; +813-4520-1265;))