Kyushu was sold after reporting weaker than expected results and a negative outlook. The company proved unable to meet increased volume demand from its nuclear plants and was thus forced to increase output from its thermal facilities. This in turn led to a significant increase in the average cost of power generation, which the company was unable to pass on to its customers.
Kyushu Electric provides electricity generation, transmission, distribution and retail in the Kyushu region of Japan. This is a fairly industrialised region with concentrations of electronics, auto and semi-conductor manufacturers. The company is one of the lowest-cost Japanese power companies due to a significant proportion of its generation being non-thermal power (mainly nuclear and hydro). This will put it in a good competitive position as deregulation of the Japanese electricity market continues. Management have shown a consistent, sensible strategy over the past few years, with limited one-off costs, and maintained focus on the core electricity business. The price has been weighed down by the recent impact of higher than expected fuel costs, which will either subside in future or be passed on to end-users over time.
| Sedol |
Type |
Price |
Date |
| 6499806 |
Sell |
JPY 2319.318 |
01 May 2008 |
| 6499806 |
Buy |
JPY 2858.547 |
15 February 2008 | |
