Tokyo - Arabstoday
Tokyo Electric Power Co, the operator of Japan’s stricken nuclear plant, reported a $7.4 billion quarterly loss due to a massive provision to compensate victims of the nuclear disaster, soaring fuel costs and a dive in sales. The March meltdown at the Fukushima complex in northeast Japan spawned the world’s worst nuclear crisis since Chernobyl and put the very existence of Asia’s largest utility, commonly known as Tepco, in doubt. Tepco’s chances of survival improved after parliament last week passed a bailout backed by taxpayer funds and contributions from other utilities to help shoulder a compensation bill that analysts estimate could climb as high as $130 billion. “It’s hard to define how much Tepco will have to write off in losses, but the worst is yet to come,” said Yuuki Sakurai, CEO and president of Fukoku Capital Management. For April-June, Tepco reported a net loss of 571.8 billion yen ($7.4 billion), against a loss of 5.5 billion yen in the same period last year. Sales fell 7 per cent to 1.13 trillion yen. “(Future losses) will all depend on how damages from radiation are determined, and if the definition is broadened it could easily be double or triple this amount,” Sakurai said. From / Gulf Today