Jera's net income drops 84% in 2021-2022
Japanese Jera’s net income during the 12 months to March 31, 2022 (FY2021) dropped 84.4% year/year due to losses resulting from the fuel cost adjustment system time lag, it said on April 28. Fuel cost adjustment system is a system designed to automatically adjust monthly electricity fees based on fluctuations in fuel prices for crude oil, LNG and coal.
The company’s net income came in at 24.6bn yen ($190mn) compared with 157.8bn yen in the same period last year. Net income excluding the impact of the fuel cost adjustment system time lag was 277bn yen.
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“Net income excluding the effect of time lag increased mainly due to the rebound from COVID-19 negative impact in the previous consolidated fiscal and Jera Global Markets profit increase from fuel volume adjustment,” the company said.
Operating revenue increased by 62.5% yr/yr to 4.43 trillion yen as the result of increased sales by fuel trading subsidiary Jera Global Markets as well as a year-on-year increase in electricity sales.
Jera said it has not yet established its consolidated financial forecast for FY2022 as the uncertain outlook for resource prices and electric power sales in light of factors such as the situation in Ukraine means business performance cannot be reasonably calculated.