JERA Reports 50% Profit Drop, Expects Recovery This Year

JERA, Japan’s largest power generator, reported a 50% drop in annual net profit, citing weaker performance in its overseas power generation and renewable energy businesses. Net income for the fiscal year ending March stood at 184 billion yen ($1.3 billion), down sharply from the previous year. However, the company expects a strong rebound, forecasting a net profit of 230 billion yen for the current fiscal year.

A joint venture between Tokyo Electric Power and Chubu Electric Power, JERA operates around 30 overseas power generation projects across more than 10 countries. These projects contribute approximately 13 gigawatts (GW) of capacity, compared to 59 GW from domestic operations.

The company’s overseas and renewable segments faced significant challenges, with profits plunging by 25.4 billion yen to just 8.3 billion yen. Despite this setback, JERA remains focused on its global expansion and energy transition efforts, particularly in renewables and liquefied natural gas (LNG) projects.

JERA continues to play a crucial role in Japan’s energy sector, balancing its domestic strength with growing international operations. The firm’s resilience and strategic focus on clean energy are expected to drive its anticipated profit recovery in the coming year.