Shikoku Electric Power Company, Incorporated
9507・Prime Market・Electric Power & Gas
Power Generation & Sales Business
The core segment of the Shikoku Electric Power Group, responsible for power generation, retail sales, and wholesale sales of electricity.
| Period | Current | Previous | Change |
|---|---|---|---|
| Sales revenue (including intersegment transactions) | ¥630,128 million | ¥709,628 million | ↓ |
| Segment ordinary income | ¥34,886 million | ¥41,361 million | ↓ |
| Total electricity sales volume | 34,346 million kWh | 35,609 million kWh | ↓ |
| Depreciation (including nuclear fuel impairment) | ¥37,110 million | ¥37,782 million | ↓ |
| Increase in property, plant and equipment and intangible assets | ¥67,508 million | ¥41,355 million | ↑ |
| Segment assets | ¥1,394,161 million | ¥1,361,890 million | ↑ |
Business Details
The Power Generation & Sales Business procures electricity by combining its own power sources—Ikata Power Station (nuclear), thermal, hydro, renewable energy, etc.—with power received from other companies, and conducts retail sales to households and corporations in the Shikoku area as well as wholesale sales. Total electricity sales volume for FY2026 (ending March 2026) was 34,346 million kWh, down 3.5% year on year. Sales revenue (including intersegment transactions) accounts for approximately 83% of the group's total and is the core business; a decrease in the fuel cost adjustment amount and a decline in capacity procurement contract amounts squeezed profitability.
Recent Overview
Both revenue and profit declined significantly due to a decrease in the fuel cost adjustment amount and a decline in capacity procurement contract amounts.
In FY2026 (ending March 2026), the Power Generation & Sales Business saw retail sales revenue decrease 5.6% year on year due to a decline in the fuel cost adjustment amount, and wholesale sales revenue decrease 29.7% year on year due to a decline in capacity procurement contract amounts, resulting in segment sales revenue (including internal transactions) of ¥630,128 million, down ¥79,500 million year on year. Segment ordinary income also fell to ¥34,886 million, down ¥6,475 million year on year. On the other hand, certain cost-side improvements were seen due to the increase in operating days at Ikata Power Station Unit 3 (utilization rate of 81%) and lower thermal power unit costs and reduced purchased power costs. Capital expenditure increased significantly year on year to ¥67,508 million, as the buildup of operating assets continues.
Key Products
Growth Drivers
- Increase in nuclear power generation volume through continued safe and stable operation of Ikata Power Station Unit 3 (utilization rate of 81% in FY2026 (ending March 2026), projected at 91% in FY2027 (ending March 2027))
- Recovery in wholesale sales revenue driven by a projected large increase in wholesale sales volume in FY2027 (ending March 2027) (planned increase from 11.5 billion kWh to 16.8 billion kWh)
- Rise in unit revenue accompanying higher fuel prices (FY2027 (ending March 2027) forecast: coal CIF $170/t, crude oil CIF $95/b)
- Continuation of the increasing trend in contracted capacity for retail sales
- Reduction effect on supply-demand-related costs from lower thermal power unit costs and reduced purchased power costs
Risks
- Risk of decreased retail sales revenue due to fluctuations in the fuel cost adjustment amount (significant decrease in FY2026 (ending March 2026))
- Risk of outage at Ikata Power Station (regulatory response, safety review, periodic inspections, etc.)
- Risk of fluctuation in wholesale sales revenue due to changes in electricity market prices and capacity procurement contract amounts
- Risk of fluctuation in hydro power generation volume due to natural conditions such as a decline in water flow rate (water flow rate of 80% in FY2026 (ending March 2026), down 24.5% year on year)
- Risk of increased personnel costs due to changes in amortization of actuarial differences related to retirement benefits (an increasing factor in the FY2027 (ending March 2027) forecast)
- Risk of year-to-year fluctuation in the transmission and distribution company's financial results under the revenue cap system
Last updated: June 24, 2026