JERA Co., Inc. reported a rise in Q2 profit for FY2025 despite a revenue decline, driven by improvements in overseas and renewable energy segments. Operating profit increased 10% to ¥217.2 billion, while revenue fell 7.3% to ¥1.53 trillion due to lower electricity sales prices.

Profit growth was supported by a jump in the time lag effect to ¥67.1 billion, but profit excluding time lag decreased by 27% to ¥89.1 billion. The decline in revenue was attributed to lower energy prices, while higher fuel procurement costs impacted profit excluding time lag.

The overseas and renewable energy segment saw strong growth, with profit rising to ¥19.9 billion. Total assets decreased to ¥7.98 trillion, liabilities dropped by 10.7%, and equity remained stable at ¥2.98 trillion. Operating cash flow surged to ¥324.7 billion.

JERA maintained its full-year profit forecast of ¥230 billion, with expectations of ¥200 billion in profit excluding time lag. Management warned of potential fluctuations due to global fuel market volatility and currency changes. The company’s partnership with bp aims to accelerate low-carbon projects.

Reflecting its financial stability, JERA received an upgrade to AA– from Japanese ratings agencies. The company continues to expand its international and renewable portfolio in line with Japan’s decarbonization strategy. Operating in a volatile energy market, JERA faces challenges but remains committed to sustainability goals.

Read more at Yahoo Finance: JERA Profit Climbs Despite Lower Revenues Amid Fuel Price Headwinds