OREANDA-NEWS. Tokyo Gas announced its financial results for the first half and second quarter, ended September 30, 2014, of the current fiscal year ending March 31, 2015 (fiscal 2015).

Gas sales volume for the first half of FY2014 (April 1 - September 30, 2014) increased 7.8% year-on-year, to 7,192 million m3. This increase was mainly driven by a growth in residential demand in line with an increase in the number of household users as well as an improvement in industrial demand especially for electric power generation, which more than offset a reduction in commercial demand in line with lower demand for air conditioning affected by lower temperatures than in the year-earlier. Sales unit prices under the gas rate adjustment system rose, in line with the yen's depreciation, while the gas sales volume increased, resulting in an 11.0% increase in city gas sales to ?737.8 billion.

In addition to this increase in city gas sales, sales of other energy (Electric Power Generation etc.) rose, leading to a 10.4% increase in consolidated net sales, to JPN 1,031.0 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 10.6% increase in operating expenses, to JPN 956.4 billion.

As a result, operating income rose 8.9% year-on-year, to JPN 74.5 billion, and ordinary income increased 11.8%, to JPN 72.6 billion. Net income increased 33.3%, to JPN 57.0 billion after the recording of income taxes as well as the posting of extraordinary gain of JPN 10.3 billion (gain on sales of noncurrent assets of JPN 5.4 billion and gain on valuation of investment securities of ?4.8 billion) and extraordinary loss of JPN 0.5 billion (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.