OREANDA-NEWS. Tokyo Gas Reports Consolidated Results Forecast for FY2014 ending March 31, 2015 (April 1, 2014 - March 31, 2015).

Gas sales volume for the first quarter of FY2014 (April 1 - June 30, 2014) increased 8.0% year-on-year, to 3,657 million m3. This increase was mainly driven by an improvement in industrial demand especially for electric power generation which more than offset a reduction in commercial demand caused by a decrease in the number of gas usage days from the previous year attributable to gas meter reading schedule. Increasing gas sales volume and rising sales unit prices under the gas rate adjustment system in line with yen's depreciation, city gas sales grew a 13.2% increase to JPM 389.8 billion.

In addition to this increase in city gas sales, sales of other energy (Electric Power Generation etc.) rose, leading to a 12.8% increase in consolidated net sales, to JPN 534.0 billion.

Despite efforts to further increase management efficiency and reduce expenses to the maximum extent possible, higher gas resource costs stemming from an increase in gas sales volume and the yen's depreciation, combined with an increase in expenses at the other energy segment, resulted in a 9.3% increase in operating expenses, to JPN 474.0 billion.

As a result, operating income increased 50.3% year-on-year, to ?60.0 billion, and ordinary income was 50.5% higher, at JPN 59.6 billion. Net income increased 71.8%, to JPN 44.7 billion after the recording of income taxes as well as the posting of extraordinary gain on sales of noncurrent assets of JPM 5,4 billion and extraordinary loss on valuation of investment securities of JPN 0.5 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.