The Chugoku Electric Power Co., Inc. (9504.T) Bundle
Founded on May 1, 1951 to serve Japan's Chūgoku region, The Chugoku Electric Power Co., Inc. has evolved into a diversified energy player-owning a 40.49% stake in Chudenko Corporation, reporting operating revenues of ¥1,502,494 million for the year ending March 31, 2025, and a trailing 12‑month revenue of $10 billion-moves underscored by concrete financial maneuvers such as the ¥12.1 billion special profit from surplus nuclear fuel sales in October 2024 and a March 2025 upward revision of its ordinary profit forecast to ¥105 billion (a 15.4% increase from ¥91 billion); with the December 2024 decision to restart Shimane Nuclear Power Station Unit 2, formal interim financial confirmation in August 2025, and a business model spanning Electric Power, Comprehensive Energy Supply and Information Systems & Telecommunications, Chugoku Electric balances thermal, hydro, nuclear and renewables while leveraging service lines and consulting to broaden revenue-read on to explore its century-spanning history, governance ties, mission-driven strategy and the mechanics of how it makes money
The Chugoku Electric Power Co., Inc. (9504.T): Intro
The Chugoku Electric Power Co., Inc. (9504.T) was established on May 1, 1951 to generate, transmit and distribute electricity across Japan's Chūgoku region. Over seven decades it has navigated local opposition to nuclear projects, shifts in Japan's energy policy, and recent financial maneuvers to stabilize and grow earnings.
- Foundation: May 1, 1951 - mandate to serve the Chūgoku region.
- 1982: Proposed nuclear plant near Iwaishima Island; plan abandoned after strong local and fishing-cooperative opposition.
- 2011: Major post-Fukushima shutdowns impacted nuclear units nationwide, including Shimane Unit 2 (shut down since 2011).
- December 2024: Announced restart of Shimane Nuclear Power Station Unit 2 to enhance generation capacity.
- October 2024: Recognized a special profit of ¥12.1 billion from sale of surplus nuclear fuel to strengthen financial base.
- March 2025: Revised FY2025 ordinary profit forecast upward by 15.4%, from ¥91.0 billion to ¥105.0 billion.
- August 2025: Completed interim review of quarterly consolidated financial statements for three months ended June 30, 2025 - confirmed no changes.
| Item | Date / Period | Amount / Outcome |
|---|---|---|
| Establishment | May 1, 1951 | Founded to serve Chūgoku region |
| Iwaishima nuclear proposal | 1982 | Project abandoned after local opposition |
| Shimane Nuclear Power Station Unit 2 | Shut since 2011 - Restart announced | Restart announced December 2024 |
| Surplus nuclear fuel sale | October 2024 | Special profit: ¥12.1 billion |
| FY2025 ordinary profit forecast (revised) | March 2025 | From ¥91.0 bn → ¥105.0 bn (＋15.4%) |
| Interim review | Aug 2025 (for Q1 ended June 30, 2025) | No changes to previously disclosed information |
How The Chugoku Electric Power Co., Inc. (9504.T) operates and generates revenue:
- Power generation mix - combination of thermal (coal, LNG), nuclear (when authorized and operating), hydro and growing renewables; generation dispatch and fuel procurement drive short-term margins.
- Electricity sales - the core revenue source from retail and wholesale customers across the Chūgoku region under regulated/retail market frameworks.
- Fuel and commodity management - deliberate sale of surplus nuclear fuel (example: ¥12.1 bn realized Oct 2024) and hedging impact margins.
- Grid operations and transmission - regulated charges and investments in grid stability and interconnections contributing to regulated returns.
- Asset optimization and cost control - restarts, plant life management and O&M efficiency to improve profitability (reflected in the March 2025 upward revision).
- Non‑operating items - special gains/losses (e.g., the October 2024 special profit) and financial income/expenses affect reported ordinary profit.
Key financial datapoints and recent trajectory:
- Special profit recognized Oct 2024: ¥12.1 billion from surplus nuclear fuel sale.
- FY2025 ordinary profit forecast (revised Mar 2025): ¥105.0 billion (previously ¥91.0 billion; +15.4%).
- Quarterly review (Aug 2025): No change following interim review for Q1 ended June 30, 2025.
For a fuller company overview, history, ownership structure, mission and detailed business model, see: The Chugoku Electric Power Co., Inc.: History, Ownership, Mission, How It Works & Makes Money
The Chugoku Electric Power Co., Inc. (9504.T): History
Founded in 1951 and headquartered in Hiroshima, The Chugoku Electric Power Co., Inc. (9504.T) has developed from a regional utility into a vertically integrated energy group serving western Honshu. Its historical growth has leaned on close affiliations with specialized contractors and engineering firms-most prominently Chudenko Corporation-allowing Chugoku Electric to combine generation, transmission and customer-facing distribution with in‑house technical and commissioning capabilities.
- As of March 31, 2025, Chugoku Electric held 40.49% of the voting rights in Chudenko Corporation (an affiliated company), representing a material, direct equity stake with no indirect ownership.
- Chugoku Electric maintains business, capital and personnel relationships with Chudenko; Chudenko receives contracts for electrical work from Chugoku Electric.
- Personnel ties include three employees seconded from Chugoku Electric to Chudenko as of March 31, 2025.
- Governance links: one of Chudenko's four Audit & Supervisory Committee Directors concurrently serves as a Managing Executive Officer at Chugoku Electric; additionally two of Chudenko's seven non‑committee Directors are from Chugoku Electric.
| Item | Detail (as of March 31, 2025) |
|---|---|
| Equity stake in Chudenko | 40.49% voting rights (direct ownership; no indirect ownership) |
| Personnel secondments | 3 employees seconded from Chugoku Electric to Chudenko |
| Board representation at Chudenko | 2 of 7 Directors (excluding Audit & Supervisory Committee members) are from Chugoku Electric; 1 of 4 Audit & Supervisory Committee Directors concurrently holds an executive role at Chugoku Electric |
| Business relationship | Chudenko receives electrical work contracts from Chugoku Electric; ongoing procurement and technical collaboration |
These ownership and governance linkages have been central to Chugoku Electric's strategy of securing reliable engineering capacity and maintaining operational oversight over critical construction and maintenance work. For more detail see: The Chugoku Electric Power Co., Inc.: History, Ownership, Mission, How It Works & Makes Money
The Chugoku Electric Power Co., Inc. (9504.T): Ownership Structure
The Chugoku Electric Power Co., Inc. (9504.T) positions itself as a 'Comprehensive energy enterprise' whose corporate philosophy emphasizes earning customers' trust and being the energy provider they choose. Central mission elements include delivering a stable, economical supply of clean electrical energy, minimizing costs through efficient use of generation and transmission assets, preserving resources, protecting the environment, and fostering open procurement and global supplier relationships. See the full corporate framing here: Mission Statement, Vision, & Core Values (2026) of The Chugoku Electric Power Co., Inc. Mission and values highlights- Primary mission: stable, economical, environmentally responsible electricity supply to customers.
- Operational focus: maximize utilization and efficiency of generation, transmission and related equipment to lower unit supply cost.
- Environmental commitment: resource preservation, emissions reduction and clean-energy deployment.
- Procurement stance: open to domestic and international suppliers to secure high-quality goods at reasonable prices.
- Global partnerships: actively seeks business relationships with companies worldwide to support technology, fuel and equipment sourcing.
- Publicly listed on the Tokyo Stock Exchange (ticker: 9504.T) with a dispersed shareholder base of institutional and retail investors.
- Major shareholders typically include trust banks and institutional custodians, domestic financial institutions, and foreign institutional investors, reflecting common Japanese equity ownership patterns.
- Board and governance are structured to balance operational stability (long-term utility assets) and shareholder accountability, with regular disclosure of financial, environmental and operational performance.
| Shareholder | Approx. stake (%) | Notes |
|---|---|---|
| The Master Trust Bank of Japan, Ltd. (trust account) | ~24.7 | Large trust holdings reflecting institutional investor accounts |
| Japan Trustee Services Bank, Ltd. (trust account) | ~6.5 | Trust holdings for pensions/retail investors |
| Mitsubishi UFJ Trust & Banking / Other banks | ~3.9 | Domestic bank custodial holdings |
| Employee/shareholder associations | ~3.6 | Internal holdings and employee share plans |
| Foreign institutional investors (combined) | ~10.4 | Custodial/fund owners outside Japan |
| Other retail & institutional investors | ~51. - | Dispersed holdings across many accounts |
- Electricity sales: residential, commercial and industrial retail tariffs under regulated and market-based frameworks provide primary revenue streams.
- Wholesale power: supply to large industrial customers and participation in regional wholesale markets.
- Fuel procurement & generation mix: costs driven by fuel (LNG, coal, fuel oil) and nuclear/hydro availability; efficient fuel management reduces unit cost.
- Grid/transmission services: regulated transmission and distribution fees tied to asset base and allowed returns.
- Non-energy businesses: engineering, construction, equipment leasing and energy-related services contribute incremental revenue.
| Metric | Value (JPY, consolidated, most recent fiscal year) | Context |
|---|---|---|
| Revenue (sales) | ~¥726.5 billion | Primary income from electricity sales and related services |
| Operating Income | ~¥34.2 billion | Reflects generation margin after fuel and operating costs |
| Net Income | ~¥17.8 billion | After interest, taxes, extraordinary items |
| Total Assets | ~¥2,012.3 billion | Includes generation plants, transmission networks and fuel inventory |
| Installed capacity | ~7,000-8,000 MW (combined thermal, hydro, nuclear) | Generation mix influences fuel and emissions profile |
- Fuel cost volatility (LNG/coal prices) materially impacts margins-efficiency and procurement strategies aim to mitigate exposure.
- Capital spending on plant maintenance, grid upgrades and decarbonization (renewables, emissions control) drives investment and affects regulated asset base.
- Environmental regulation and community relations (particularly around nuclear and thermal plants) influence operating availability and long-term asset valuations.
The Chugoku Electric Power Co., Inc. (9504.T): Mission and Values
The Chugoku Electric Power Co., Inc. (9504.T) is a regional utility headquartered in Hiroshima that provides electricity and diversified energy services across the Chugoku region of Japan. Its operations are organized into three primary business segments and several regional development and support activities that together form a vertically integrated energy and services platform. How It Works- Electric Power segment: Retail and wholesale electricity supply to residential, commercial, and industrial customers across the Chugoku service area; operation and maintenance of generating assets; grid operation and demand management.
- Comprehensive Energy Supply segment: Procurement and sale of fuels (LNG, coal), supply of piped and LNG-based gas where applicable, sale of electricity and heat to industrial and district customers, and energy solutions for efficiency and cogeneration.
- Information Systems and Telecommunications segment: Internet access, telephony, broadcasting provision, and Ethernet telecommunications network services for corporate and consumer customers; IT systems and smart-grid communication support for the utility business.
- Environmental harmony creation: programs and investments in renewables, CO2 reduction, and biodiversity initiatives.
- Business and life support services: electrification-related services, electric appliance retail and after-sales, and community services supporting regional quality of life.
- Electric power business support: engineering, construction, equipment procurement, and shared corporate functions that reduce costs across segments.
| Category | Examples / Notes | Approx. Capacity / Share |
|---|---|---|
| Thermal (coal, oil, LNG) | Large thermal stations supplying baseload and mid-merit power | ~5,000-6,000 MW / ~60-70% of generation |
| Hydroelectric | Multiple river-based plants, used for daily load-following and peaking | ~800-1,000 MW / ~10-15% |
| Nuclear | Participation in regional nuclear facilities (subject to regulatory restart status) | ~1,000-1,300 MW (operational units vary) / ~5-15% |
| New energy (solar, wind, biomass) | Distributed solar, onshore wind, small biomass; development focus | ~300-600 MW / growing share (~5-10%) |
| Total installed capacity | Combined owned and contracted capacity serving the region | ~7,000-9,000 MW (approx.) |
- Customer base: Serves several million electricity customers across the Chugoku region (residential, commercial, industrial).
- Service area: Prefectures in western Honshu (Chugoku region), with local grid and customer service operations clustered by prefecture.
- Electricity sales (retail and wholesale): The largest revenue source - residential volumetric sales plus commercial/industrial contracts and bulk power transactions.
- Fuel procurement and trading margins: Gas and coal procurement for thermal generation, LNG trading and supply contracts in the Comprehensive Energy Supply segment.
- Energy services and heat sales: Cogeneration, district heating/cooling, and industrial energy-supply contracts.
- Telecommunications and IT services: Recurring subscription and service fees for internet, telephony, broadcasting, and corporate Ethernet services.
- Engineering, construction, and maintenance services: Contract revenues for plant construction, grid upgrades, and outsourced O&M.
| Metric | Approx. Value | Notes |
|---|---|---|
| Annual consolidated revenue | ¥700-1,000 billion | Varies year-to-year with fuel costs and electricity demand |
| Operating profit / EBITDA | ¥40-120 billion (operating profit range) | Impacted by fuel cost pass-through, nuclear restarts, and commodity markets |
| Total assets | ¥1.2-1.6 trillion | Includes generation assets, grid infrastructure, and development investments |
| Net debt / leverage | Elevated versus non-utility peers | Capital-intensive business; leverage fluctuates with CAPEX and fuel procurement |
- Fuel cost pass-through and regulatory tariff mechanisms influence realized margins for electricity sales.
- Nuclear restarts and availability significantly reduce fuel costs when reactors operate, improving profitability.
- Growth in renewables and energy services diversifies revenue but requires CAPEX and grid integration investments.
- Telecom/IT segment contributes stable, lower-margin recurring revenue and leverages existing utility fiber assets.
- Ongoing CAPEX: maintenance and replacement of thermal and hydro units, grid reinforcement, and digitalization for smart-metering and distribution automation.
- Growth investments: renewable generation projects (solar/wind), LNG supply chain enhancements, and energy-solution offerings for industrial customers.
- Environmental investments: emissions reduction technologies, biomass conversion, and programs to meet regional decarbonization targets.
- Tariff regulation and electricity market liberalization in Japan shape retail competition and pricing freedom for large consumers.
- Fuel price volatility (LNG, coal) and carbon policy affect short-term profits and long-term investment returns.
- Regional economic activity and electrification trends (EVs, heat electrification) drive growth in demand over time.
The Chugoku Electric Power Co., Inc. (9504.T): How It Works
The Chugoku Electric Power Co., Inc. (9504.T) operates as an integrated electric utility serving the Chugoku region of Japan. Its core activities cover power generation, transmission and distribution, retail electricity sales, and a range of supplementary business services and products that diversify revenue and margins.- Generation mix: hydroelectric, thermal (coal, LNG, oil), nuclear, renewables (solar, wind, biomass) and other sources provide a diversified supply portfolio.
- Transmission & distribution: regional grid operation, maintenance, and network upgrades to deliver electricity to industrial, commercial and residential customers.
- Retail & wholesale sales: supply contracts with large industrial customers, retail tariffs for households and small businesses, and wholesale market transactions.
- Non-generation businesses: consulting (environmental harmony creation, business support), transportation facilities, electrical communications, electrical conductors and cables, materials and equipment sales, and construction/maintenance services.
| Item | Amount (¥ million) | Notes |
|---|---|---|
| Operating revenues (FY ended Mar 31, 2025) | 1,502,494 | Primarily electricity sales plus ancillary businesses |
| Special profit from surplus nuclear fuel sale (Oct 2024) | 12,100 | Non-recurring gain boosting FY performance |
| Ordinary profit forecast (FY2025, revised Mar 2025) | 105,000 | Up 15.4% from prior forecast of 91,000 |
| Prior ordinary profit forecast (FY2025, before revision) | 91,000 | Reference baseline |
- Electricity sales generate the bulk of operating revenue (tariff-regulated and market-based contracts).
- Fuel and generation mix management (thermal fuel hedging, nuclear utilization, renewable integration) control variable costs and gross margins.
- Asset sales and one-off transactions (e.g., surplus nuclear fuel sale yielding ¥12.1 billion) can materially affect net profit in a single year.
- Consulting and equipment businesses provide higher-margin, recurring fee and product sales that smooth revenue volatility.
- Grid and network services produce stable fee-like cash flows and support long-term customer contracts.
- Power generation: operating and maintaining plants across technologies to meet demand and capacity obligations.
- Fuel procurement and storage: managing LNG/coal/oil contracts and nuclear fuel cycles to optimize cost and supply security.
- System operation: dispatch, load balancing, and reliability management across transmission and distribution networks.
- Customer-facing services: billing, retail plans, energy efficiency programs, and corporate consulting engagements.
- Manufacturing/supply: provision and sale of conductors, cables and other electrical equipment to third parties and for internal capital projects.
| Metric | Relevance |
|---|---|
| Operating revenues: ¥1,502,494 million (FY ended Mar 31, 2025) | Top-line scale of core utility operations |
| One-off special profit: ¥12,100 million (Oct 2024) | Example of non-recurring income improving net results |
| Revised ordinary profit forecast: ¥105,000 million (Mar 2025) | Indicator of improved operating performance and outlook |
The Chugoku Electric Power Co., Inc. (9504.T): How It Makes Money
The Chugoku Electric Power Co., Inc. (9504.T) generates revenue primarily by producing and selling electricity across western Honshu, supplemented by fuel and electricity trading, retail services, and value-added customer offerings. Its trailing 12‑month revenue as of March 31, 2025 was $10.0 billion, underscoring its material role among Japan's regional utilities. The company ranks sixth by electricity sales among Japan's ten regional power utilities, reflecting a solid market position and room for growth through efficiency and portfolio optimization.- Core electricity generation and retail sales (wholesale and regulated retail tariffs)
- Fuel and electricity trading (optimized procurement, short/long positions)
- Nuclear generation contribution following Shimane restarts
- New rate plans, bundled services, and energy solutions for commercial customers
- Non‑regulated businesses: maintenance, engineering, and distributed energy services
| Metric | Value / Status |
|---|---|
| Trailing 12‑month revenue (as of Mar 31, 2025) | $10.0 billion |
| National ranking by electricity sales | 6th of 10 regional utilities |
| Shimane Nuclear Power Station Unit 2 | Restarted December 2024 (adds baseload capacity) |
| Planned Shimane No.2 reactor | Restart scheduled later in 2024 (to boost generation mix) |
| FY ending Mar 31, 2026 outlook | Anticipated increase in total electricity sales volume |
| Strategic focus | Advance trading technology, launch new rate plans & services to enhance earning power |
- Short‑term profit drivers: improved fuel/trading margins and restart of nuclear units reducing reliance on spot LNG and thermal generation.
- Medium‑term growth levers: customer retention via new rate plans, expanded commercial energy services, and digital trading platforms.
- Risks impacting earnings: fuel price volatility, regulatory changes in retail tariffs, and capital/operational costs of nuclear restarts.
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