Tokyo Electric Power Co. recorded a consolidated net loss of 1.2473 trillion yen ($15.28 billion) in fiscal 2010 ending in March this year, officials said May 20.
Tokyo Electric Power Co. recorded a consolidated net loss of 1.2473 trillion yen ($15.28 billion) in fiscal 2010 ending in March this year, officials said May 20.
The ocean of red ink is mainly attributable to costs incurred in dealing with the disaster at the crippled Fukushima No. 1 nuclear power plant.
An extraordinary loss of 1.0776 trillion yen will be posted in the annual financial statement for fiscal 2010. Extraordinary losses are from unexpected one-time events such as natural disasters.
TEPCO President Masataka Shimizu, 66, plans to resign to take responsibility for the utility's handling of the accident.
He will be replaced by Toshio Nishizawa, 60, at TEPCO's shareholder meeting to be held around the end of June.
Initially it was believed the losses would be between 700 billion yen and 800 billion yen. However, confirmation of meltdowns at the No. 1, No. 2 and No. 3 reactors has substantially increased decommissioning costs.
Also, TEPCO plans to raise 500 billion to 600 billion yen by selling off assets to pay part of the compensation. It had initally planned to procure 300 billion yen.
The utility plans to sell shares of KDDI Corp. and other companies as well as real estate holdings, including resort facilities.
TEPCO chairman Tsunehisa Katsumata will stay at his post and has served as a vice head of the headquarters jointly set up by the government and TEPCO to deal with the accident.
Shimizu was hospitalized in late March. Since leaving the hospital in early April, he has been involved in dealing with victims of the disaster.