JERA Co., Inc., Japan’s largest power generation company and one of the world’s leading LNG importers, reported a rise in second-quarter profit for fiscal 2025 despite a decline in overall revenue, driven by improved results from its overseas and renewable energy segments.
For the six months ended September 30, 2025, JERA posted a consolidated profit of ¥156.2 billion, up 12.5% year-on-year from ¥138.9 billion. The company’s operating profit rose 10% to ¥217.2 billion, while revenue fell 7.3% to ¥1.53 trillion, largely due to a decrease in electricity sales prices.
Profit growth was underpinned by a sharp increase in the time lag effect—a pricing adjustment mechanism that offsets fluctuations between fuel costs and electricity pricing—rising from ¥16.6 billion to ¥67.1 billion. However, profit excluding the time lag declined 27% to ¥89.1 billion, reflecting weaker fuel business margins and higher procurement costs.
JERA attributed the decline in revenue to lower income unit prices in electrical energy sales, while profit excluding time lag fell mainly due to higher fuel procurement and inventory costs. The company’s fuel business generated ¥203.1 billion in revenue and ¥62.7 billion in profit, slightly below last year’s ¥64.7 billion.
Meanwhile, the overseas power generation and renewable energy segment delivered strong growth, with profit jumping to ¥19.9 billion from ¥4.2 billion a year earlier, thanks to robust independent power producer (IPP) operations abroad. Domestic thermal power generation and gas operations saw profit excluding time lag fall by ¥30.7 billion, affected by LNG competitiveness and changes in inventory valuation.
Total assets stood at ¥7.98 trillion, down 7% from the end of FY2024, reflecting asset transfers to JERA Nex bp, the company’s joint decarbonization venture with bp. Liabilities decreased by 10.7% to ¥4.99 trillion, while equity remained stable at ¥2.98 trillion.
Operating cash flow surged to ¥324.7 billion, nearly doubling year-on-year, aided by reduced fuel costs and higher income from equity-method affiliates. Free cash flow reached ¥258.5 billion, while the company paid ¥43.1 billion in dividends during the quarter.
JERA maintained its full-year forecast, projecting total profit of ¥230 billion, unchanged from its July guidance. The company expects ¥200 billion in profit excluding time lag and ¥30 billion from time lag effects. Segment-wise, the fuel business is expected to contribute ¥120 billion, overseas renewables ¥30 billion, and domestic thermal and gas operations ¥80 billion.
