The Okinawa Electric Power Company, Incorporated
9511・Prime Market・Electric Power & Gas
The Okinawa Electric Power Company, Incorporated
9511・Prime Market・Electric Power & Gas
Business
Okinawa Electric Power Company, Incorporated, established in 1972, is the sole general electric utility in Okinawa Prefecture, holding a regional monopoly supplying power across the entire prefecture, including Okinawa's main island and outlying islands. With 18 consolidated subsidiaries and 3 affiliated companies, the company centers its operations on the Electric Power Business (net sales of ¥207,578 million), alongside the Construction Business (¥25,566 million) and Other businesses (¥38,366 million) such as energy services, real estate, and information services. Its main customers are households, industries, and tourism facilities within Okinawa Prefecture, and the expansion of the regional economy driven by robust tourism demand underpins electricity demand.
Business Model
The company adopts a composite revenue model centered on electricity charge revenue (¥174,112 million), supplemented by wheeling service revenue (¥10,387 million) driven by progress in power deregulation, and peripheral business revenue from group subsidiaries in construction, ESP Business (Energy Service), real estate, and other areas. While possessing a mechanism to pass fuel price fluctuations through to charges via the fuel cost adjustment system, the company is also working to improve its cost structure through procurement cost reductions from the Okiden PX Project.
Company Strengths
Since its establishment in 1972, the company has maintained legal status as the sole supplier covering the entirety of Okinawa Prefecture, and is responsible for stable supply to both the main island and outlying islands. In FY2026 (ending March 2026), Electric Power Business sales were ¥207,578 million, with operating income of ¥5,626 million. Even after deregulation of tariffs in the high-voltage segment, the company possesses a customer base and facility network capable of responding to competition from new power producers and suppliers.
The Okiden PX Project, launched in January 2025, promotes strengthening of the procurement function, supply chain optimization, and DX utilization. The initial targets of "over ¥3.0 billion on a P/L basis and over ¥5.0 billion on a cash basis" have already been achieved ahead of schedule, demonstrating a proven, self-directed capability to improve the cost structure.
The company has continuously conducted demonstration projects to establish renewable energy as a main power source and research on grid stabilization on small remote islands such as Hateruma Island and Kurima Island. Leveraging this technical expertise, it established a local subsidiary, OKIDEN PACIFIC ISLANDS CORPORATION, in the Republic of Palau, realizing power supply through solar power and storage batteries. The company has a track record of overseas expansion of technology for island regions.
ENVALITH's Perspective
Performance Trend
Revenue decreased to ¥220,177 million (down 6.9% year on year) in FY2026 (ending March 2026), due to the impact of the fuel cost adjustment system (lower unit rates from falling fuel prices) and a decline in electricity sales volume (down 1.8% year on year). On the other hand, the external factor of falling fuel prices significantly compressed electric power business operating expenses, down 7.7% year on year, resulting in operating profit of ¥9,290 million (up 26.9% year on year), ordinary profit of ¥8,167 million (up 44.2% year on year), and profit attributable to owners of parent of ¥6,234 million (up 44.2% year on year), improving for the third consecutive fiscal year. The recovery from the substantial loss in FY2023 (ending March 2023) (operating loss of ¥48,406 million) has been completed, and the equity ratio achieved the target of 25.0%. Comprehensive income improved significantly to ¥10,686 million, up 92.7% year on year, making the recovery of the financial base clearly evident.
Growth Strategy
Efficiency improvement, carbon neutrality, and increased engagement with Okinawa's growth are the three pillars driving the medium-term plan
During the three-year recovery period established following the substantial loss in FY2022, the company achieved its target consolidated equity ratio of 25.0% as of the end of FY2026 (ending March 2026). Dividends have also been raised in stages to an annual ¥30 (per share), and from the next fiscal period the company will transition to a standard dividend policy based on a DOE of 2.0% or higher.
The company is rolling out the Okiden PX Project, which integrally advances strengthening of procurement capabilities, cost optimization, and digital transformation. Reductions in fuel costs and electricity purchased from other companies have contributed to improving the cost structure in FY2026 (ending March 2026), and the company aims for continued improvement in cost competitiveness.
The company is expanding the Carrier Roof business, a third-party-owned solar power (PV-TPO) model, to meet customers' carbon neutrality needs. New energy and other power generation facilities on the non-consolidated balance sheet increased substantially from ¥1,227 million to ¥4,177 million, reflecting an acceleration of investment in renewable energy facilities. The company is also advancing business development overseas, in the Republic of Palau.
The company is capturing infrastructure demand associated with large-scale projects such as the theme park opening, restoration of Shuri Castle, and development of former base return sites. Through expansion of external construction work in the Construction Business segment and growth in the ESP Business (Energy Service), the company is strengthening revenue sources outside the Electric Power Business. Construction in progress has increased to ¥43,997 million, reflecting ongoing development of future supply infrastructure.
Last updated: July 19, 2026