Hokuriku Electric Power Company
9505・Prime Market・Electric Power & Gas
Business
Hokuriku Electric Power Company was established in 1951 and supplies electricity to Toyama, Ishikawa, Fukui (with some areas excluded), and part of Gifu Prefecture. The corporate group consists of the company and 58 affiliated companies (34 subsidiaries, 24 associated companies), and operates across three segments: the "Power Generation & Sales Business," centered on power generation and retail electricity operations; the "Transmission & Distribution Business," handled by its subsidiary Hokuriku Electric Power Transmission & Distribution; and "Other Businesses," including information & communications, facility maintenance, and manufacturing of materials and equipment. Its main customers are household and corporate electricity consumers in the Hokuriku region, and it also sells to the wholesale electricity market. Consolidated net sales for FY2026 (ending March 2026) were ¥786,552 million.
Business Model
The Transmission & Distribution Business has a stable revenue base underpinned by regulated tariffs (wheeling revenue). In the Power Generation & Sales Business, electricity generated from the company's own power sources such as hydroelectric and thermal generation is sold at retail to households and corporate customers, in addition to wholesale sales to other companies via the wholesale electricity exchange and similar channels. For FY2026 (ending March 2026), ordinary income was ¥66,363 million for the Power Generation & Sales Business and ¥19,629 million for the Transmission & Distribution Business. Capital expenditures and repair costs are financed mainly through operating cash flow and corporate bonds/borrowings.
Company Strengths
The Company owns hydroelectric power generation facilities that leverage the abundant water resources of the Hokuriku region. In FY2026 (ending March 2026), hydroelectric power generation output increased 106.7% year on year to 6,113 million kWh. As a low-cost, low-carbon power source, it contributed to ordinary income and helped mitigate, to a certain extent, the impact of the Shika Nuclear Power Station outage and unplanned thermal power plant outages.
As of the end of FY2026 (ending March 2026), the consolidated equity ratio stood at 24.4% (approaching the financial target of 25%), and ROE was 13.1%, significantly exceeding the financial target of 8%. The long-term issuer rating from R&I has been maintained at A+, and the Company possesses a financial base capable of stable fundraising through corporate bonds and borrowings.
The subsidiary Hokuriku Electric Power Transmission & Distribution Company exclusively operates the General Transmission & Distribution Service (Wheeling) business within the Hokuriku region. In FY2026 (ending March 2026), the Transmission & Distribution segment recorded segment sales of ¥221,744 million. As a regulated business, it secures stable wheeling revenue, providing earnings stability that complements the volatility risk of the liberalized market.
ENVALITH's Perspective
Performance Trend
Operating revenue decreased 8.4% from ¥858,275 million in FY2025 (ended March 2025) to ¥786,552 million in FY2026 (ending March 2026). The main external factors were a decline in fuel cost adjustment revenue due to lower fuel prices and a reduction in capacity procurement contract amounts. Although total electricity sales volume increased 3.8% year on year (33.14 billion kWh), this was not enough to offset the revenue decline. Operating profit was ¥87,459 million (down 13.4% year on year), and ordinary profit was ¥85,013 million (down 6.9% year on year), marking a second consecutive year of profit decline. An extraordinary loss of ¥8,738 million was recorded for the decommissioning of a thermal power plant. On the other hand, the equity ratio improved to 24.4% (from 20.5% in the previous fiscal year), indicating continued recovery of the financial base. For FY2027 (ending March 2027), a substantial profit decline is forecast, with ordinary profit expected to fall 58.8% year on year to ¥35,000 million, mainly due to the impact of the suspension of the Nanao-Ota thermal power plant.
Growth Strategy
Aiming for sustainable growth and a stronger financial base through three pillars: stable supply, decarbonization, and new business development
Promoting revenue diversification away from dependence on retail sales through expanded sales to wholesale electricity exchanges and other channels (up 9.0% year on year in FY2026 (ending March 2026)) and the incorporation of equity-method investment gains (¥3,659 million) following the conversion of Hokuriku Electric Power Engineering & Construction Co., Ltd. into an equity-method affiliate. The Company aims to maximize earnings under the new structure following the group reorganization.
Construction in progress, net of retirements, of ¥174,959 million has been recorded, and capital investment continues. The increase in property, plant and equipment and intangible assets expanded to ¥97,026 million (compared with ¥92,817 million in the previous fiscal year). The Company aims to achieve both low-carbon operations and stable supply through the construction of a new LNG thermal power facility.
The equity ratio recovered to 24.4% in FY2026 (ending March 2026). The annual dividend was increased from ¥20 in FY2025 (ending March 2025) to ¥25 in FY2026 (ending March 2026), and is planned to be maintained at ¥25 in FY2027 (ending March 2027). In line with the policy of "shareholder returns and strengthening of the financial base in light of the equity ratio having recovered to a certain extent," the Company aims to balance shareholder returns with financial strengthening while building up retained earnings, which stood at ¥251,122 million.
Units 1 and 2 of Shika Nuclear Power Station remained shut down through FY2026 (ending March 2026). The Company holds nuclear power generation facilities valued at ¥78,686 million and continues safety measure construction work and regulatory review response toward restart. If the restart is realized, significant profit improvement is expected through the use of this low-cost power source, although the timing remains undetermined.
Last updated: July 19, 2026