OREANDA-NEWS. Tokyo Gas Announced Financial Results for 2nd Quarter Ended September 30, 2013 (J-GAAP).

Gas sales volume for the first half of FY2013 (April 1 – Sept ember 30, 2013) declined 4.6% year-on-year, to 6,673 million m3. This included a reduction in residential demand from lower demand for air conditioning and water heating because of higher temperatures than in the year-earlier period, and a decline in industrial demand from the shift of a portion of gas used for electric power generation to tolling agreement.

Despite the decrease in gas sales volume, sales unit prices under the gas rate adjustment system rose in line with higher crude oil prices, resulting in a 5.8% increase in city gas sales to JPN 664.6 billion.

In addition to this increase in city gas sales, sales of other energy (LNG sales, etc.) rose, leading to an 8.1% increase in consolidated net sales, to JPN 933.5 billion.

Despite efforts to further increase management efficiency and reduce expenses to the maximum extent possible, higher gas resource costs stemming from the yen's depreciation, combined with an increase in expenses at the other energy segment, resulted in an 8.3% increase in operating expenses, to JPN 864.9 billion.

As a result, operating income rose 5.3% year-on-year, to JPN 68.5 billion, but with weaker net non-operating income mainly due to foreign exchange losses, ordinary income declined 3.1%, to JPN 64.9 billion. A JPN 2.0 billion extraordinary loss (impairment loss) was also recorded, but after the recording of income taxes, net income rose 7.0%, to JPN 42.7 billion.

Because the city gas business accounts for the majority of consolidated net sales, seasonal fluctuations at the business from factors including average temperatures may have a significant impact on net sales.