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JERA raises profit forecast on higher electricity and LNG prices

By Reuters News

By Yuka Obayashi

TOKYO, Oct 30 (Reuters) - Japan's JERA on Friday raised its fiscal 2026 net profit forecast by 71%, as higher electricity and liquefied natural gas prices linked to the prolonged conflict in the Middle East boost earnings at its domestic power and gas businesses.

  • JERA now expects net profit of 480 billion yen ($3.05 billion), up from its July forecast of 280 billion yen

  • The company expects its domestic thermal power and gas operations to generate net profit of 360 billion yen, double its previous forecast, as higher prices on the Japan Electric Power Exchange (JEPX) are expected to persist longer than previously anticipated

  • JERA's power purchase agreements with parent companies Tokyo Electric Power 9501.T and Chubu Electric Power 9502.T expired in March, increasing the volume of electricity it sells on the JEPX market, where prices have surged, Executive Officer Masato Otaki told reporters

  • Japan's biggest LNG buyer earned 25.5 billion yen from LNG resales from April to September, as cooler summer weather reduced power demand and left it with surplus fuel

  • JERA has secured sufficient LNG inventories to meet demand through December, Otaki said

  • The company bought spot LNG cargoes to offset supply shortfalls after QatarEnergy declared force majeure, but the purchases had no material impact on earnings, he added

  • For the six months ended September 30, JERA reported net profit of 282.9 billion yen, up 81% from a year earlier, helped by higher electricity prices and LNG resale gains

    ($1 = 157.5300 yen)

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