Tokyo Electric reports $15.2 billion loss due to nuclear crisis
Fukushima, Japan (AHN) – Tokyo Electric Power reported on Friday a group net loss of $15.2 billion (JPY 1.24 trillion) for fiscal year 2010. The amount excludes compensation to residents and businesses affected by the Fukushima Daiichi nuclear disaster.
Tokyo Electric actually enjoyed a $65.5 billion (JPY 5.36 trillion) sales and operating profit of $4.88 billion (JPY 399.6 billion), but the nuclear crisis led to a $15.2 billion net loss, which reversed the $1.6 billion (JPY 133.7 billion) profit Tokyo Electric registered the previous fiscal year.
The losses were caused by $5.2 billion (JPY 426.2 billion) cost to stabilize the reactors, $2.5 billion (JPY 207 billion) to decommission the plants and $2.6 billion (JPY 211.8 billion) to secure reactors 5 and 6, and plant 2.
Because of the extensive damage sustained by the Fukushima facililty, Tokyo Electric announced the decommissioning of reactors 1 to 4 and canceled previous plans to build two more reactors in Fukushima.
On Friday, Tokyo Electric President Masataka Shimizu announced his resignation from the utility firm after its June 28 stockholders’ meeting as his way of assuming responsibility for the nuclear crisis. Shimizu will be replaced by Toshio Nishizawa, who comes from the company’s planning division.
Shimizu admitted the nuclear crisis damaged the trust of society on nuclear power plant safety. Nishizawa said the Fukushima accident is the biggest crisis faced by Tokyo Electric since it was established.
The incoming president said the utility firm is focused on four issues, namely:
- Stabilize the nuclear reactors in Fukushima
- Support the victims
- Provide stable electric supply, and
- Reform the company.
Over the weekend, Japan, China and South Korea agreed to establish an early warning system in cases of emergencies at nuclear facilities in the three Asian nations. Japanese Prime Minister Naoto Kan agreed to set up the system in a meeting with Chinese Premier Wen Jiabao and South Korean President Lee Myung-bak in Tokyo.
The deal was reached after Japan was devastated by a magnitude 9 earthquake of March 11, which also triggered tsunamis and caused extensive damage to the Fukushima nuclear plant.
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