The Chugoku Electric Power Company, Incorporated
9504・Prime Market・Electric Power & Gas
The Chugoku Electric Power Company, Incorporated
9504・Prime Market・Electric Power & Gas
Integrated Energy Business
Core segment integrating power generation & sales with the Integrated Energy Supply Business
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment sales (external customers) | ¥1,201,930 million | ¥1,261,727 million | ↓ |
| Segment profit | ¥70,278 million | ¥95,184 million | ↓ |
| Segment assets | ¥4,201,568 million | ¥3,966,895 million | ↑ |
| Depreciation expense | ¥84,149 million | ¥62,128 million | ↑ |
| Increase in property, plant and equipment and intangible assets | ¥172,742 million | ¥256,531 million | ↓ |
Business Details
This is the core segment of the Chugoku Electric Power Group, integrating the power generation and sales business with the Integrated Energy Supply Business. In addition to in-house power generation from hydro, thermal, nuclear, new energy and other sources, the segment combines electricity received from other companies to supply power through the Lighting (Retail Electricity), Power (Industrial Retail Electricity), and Electricity Sold to Other Companies channels. It primarily targets household and industrial customers in the Chugoku region, building a vertically integrated value chain from fuel procurement to retail sales. In the fiscal year under review, sales to external customers were ¥1,201,930 million, making this the largest segment, accounting for approximately 83% of the Group's total sales.
Recent Overview
Both sales and profit declined year on year, while assets and depreciation expense increased
In the Integrated Energy Business for FY2026 (ending March 2026), sales to external customers were ¥1,201,930 million (prior year: ¥1,261,727 million) and segment profit was ¥70,278 million (prior year: ¥95,184 million), both decreasing year on year. Meanwhile, segment assets expanded to ¥4,201,568 million (prior year: ¥3,966,895 million), and depreciation expense also increased substantially to ¥84,149 million (prior year: ¥62,128 million). The increase in property, plant and equipment and intangible assets has been revised to ¥172,742 million after correction (¥167,522 million before correction).
Key Products
Growth Drivers
- Securing a low-carbon, low-cost power source and stabilizing earnings through the restart of Unit 2 of the Shimane Nuclear Power Station
- Expansion of retail earnings driven by an increase in Lighting (Retail Electricity) sales volume
- Expansion of wholesale earnings driven by an increase in Electricity Sold to Other Companies volume
- Future strengthening of power sources through the early operation of Unit 3 of the Shimane Nuclear Power Station and the replacement of Unit 2 series at the Yanai Power Station
- Medium- to long-term investment in decarbonized power sources, including preparations for hydrogen/ammonia implementation and consideration of CCUS utilization
Risks
- Risk of fluctuation in the timing-lag gains/losses under the fuel cost adjustment system (narrowing of gains could become a major factor reducing profit)
- Market fluctuation risk of fuel prices (coal, LNG, heavy oil)
- Risk of decline in total electricity sales volume (weakening demand for industrial electricity)
- Risk of delays in safety review and construction, and risk of operational suspension, at the Shimane Nuclear Power Station
- Impairment risk related to overseas resource interests (such as coal mines in Australia)
- Risk of changes in the earnings structure due to intensifying competition amid electricity market liberalization and the reinforcement of non-discriminatory wholesale sales both domestically and externally
Last updated: June 23, 2026