OREANDA-NEWS. Tokyo Gas sales volume for the first quarter of FY2013 (April 1 – June 30, 2013) declined 3.1% year-on-year, to 3,387 million m3. This included a reduction in residential demand from lower demand for water heating because of higher temperatures than in the year-earlier period, and a decline in industrial demand from the shift of a portion of gas used for electric power generation to tolling agreement. Despite the decrease in gas sales volume, sales unit prices under the gas rate adjustment system rose in line with higher crude oil prices, resulting in a 4.9% increase in city gas sales to 344.5 billion yen.

In addition to this increase in city gas sales, sales of other energy (LNG sales, etc.) rose, leading to a 7.0% increase in consolidated net sales, to 473.6 billion yen. Despite efforts to further increase management efficiency and reduce expenses to the maximum extent possible, higher gas resource costs stemming from the yen’s depreciation, combined with an increase in expenses at the other energy segment, resulted in a 9.3% increase in operating expenses, to 433.6 billion yen.

As a result, operating income declined 12.8% year-on-year, to 39.9 billion yen, ordinary income was 20.0% lower, at 39.6 billion yen, and after the recording of income taxes, net income declined 18.1%, to 26.0 billion yen.

Because the city gas business accounts for the majority of consolidated net sales, seasonal fluctuations at the business from factors including average temperatures may have a significant impact on net sales.