Tokyo Gas Reports Financial Results for 2nd Quarter
Gas sales volume for the first half of FY2015 (April 1 - September 30, 2015) decreased 0.1% year-on-year, to 7,184 million m3. This decrease was mainly attributable to a decline in industrial demand especially for electric power generation which was not offset by supplies to other utilities driven by a growth in demand for suppliers.
Sales unit prices under the gas rate adjustment system declined, in line with a decline in crude oil prices, resulting in a 15.4% decrease in city gas sales to JPN 624.2 billion. In addition to this decrease in city gas sales, sales of other energy (Electric Power etc.) declined, leading to a 12.6% decrease in consolidated net sales, to JPN 901.4 billion.
Thanks to efforts to further increase management efficiency and reduce expenses to the maximum extent possible, lower gas resource costs stemming from falling of crude oil prices, combined with a decrease in expenses at the other energy segment, resulted in a 17.3% decrease in operating expenses, to JPN 791.3 billion.
As a result, operating income increased 47.6% year-on-year, to JPN 110.0 billion, and ordinary income was 47.4% higher, at JPN 107.0 billion. Net income attributable to the parent company increased 41.3%, to JPN 80.6 billion after the recording of income taxes and extraordinary loss (loss on valuation of investment securities of JPN 2.6 billion).
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