Japan's JERA Q1 profits down slightly on weaker overseas sales
JERA, Japan’s largest power generator, posted on Thursday a 1% decline in net profit during the first quarter fiscal year 2025, to 92.5 billion Japanese yen (621 million dollars), due to a weaker power generation overseas, including renewable energy.
JERA, the joint venture between Tokyo Electric Power (TEP) and Chubu Electric Power (CEP), saw a net profit of 93.4 billion yen in the same time period last year. Its revenue grew by 8.5%, to 830.8 billion Japanese yen, on the back of stronger domestic sales.
Naohiro Makawa, Naohiro's executive officer, said at a press conference that the weaker winds in Europe had an impact on offshore wind projects.
Maekawa, when asked about JERA's renewable energy policy, said that the company is experiencing a difficult environment because of rising costs. However, it will continue to work towards a decarbonized world.
The company's profit forecast for the full year remained unchanged at 230 billion Japanese yen.
Last week, Japan and U.S. President Donald Trump struck a deal that reduces tariffs on automobile imports while sparing Tokyo new levies. This was in exchange for $550 billion of investment and loans bound for the U.S.
Maekawa stated that the impact of U.S. Tariffs on electricity demand in manufacturing industries was limited to date. It added that it expected its electricity sales for this fiscal year to be flat compared with last year.
JERA, Japan’s largest buyer of liquefied gas, signed new deals in June to purchase U.S. LNG through four different projects. This was done to diversify the portfolio and move away from Australia.
Maekawa stated that, "In view of future geopolitical changes and risks, it is vital to expand our geographical focus to include the U.S. and the Middle East, and beyond."
The recent deals will increase the U.S.'s share of JERA LNG from 10% to 30% in the early 2030s.
He added, "We think that increasing LNG imports from Middle East and U.S. would enhance supply stability and cost-efficiency."
(source: Reuters)