OREANDA-NEWS. Against the backdrop of this economic situation and operating environment, the Tokyo Gas Group formulated "The Tokyo Gas Group's Vision for Energy and the Future-Challenge 2020 Vision-" (the "Challenge 2020 Vision"), under which the Group is "Enhancing the LNG Value Chain" by enhancing added value and expanding area coverage.

Boosted by these intense efforts, city gas sales increased from an increase in sales unit price due to resource cost adjustment associated with a weaker yen as well as a year-on-year increase in gas sales reflecting growing power generation demand, combined with sales growth at the other energy segment mainly from increased retail electricity sales. Accordingly, consolidated net sales for the year rose 8.5%, to JPN 2,292.5 billion.

In terms of operating expenses, despite further improvement in management efficiency and extensive efforts to contain expenses, the yen's depreciation and higher gas sales volume led to higher gas resource costs, and expenses at the other energy segment rose on increased retail electricity sales, leading to a 9.0% increase in operating expenses, to JPN 2,120.7 billion.

As a result, operating income grew 3.4%, to JPN 171.7 billion, and ordinary income rose 5.4%, to JPN 168.1 billion. With the recording of extraordinary income consisting of gain on sales of noncurrent assets (JPN 6.1 billion) and gain on sales of investment securities (JPN 5 billion), extraordinary loss consisting of impairment loss on overseas upstream projects (JPN 30.9 billion), loss on reduction of noncurrent assets (JPN 0.5 billion) and loss on valuation of investment securities (JPN 0.6 billion), and income taxes, net income dropped 11.6%, to JPN 95.8 billion.

Gas sales volume for FY2014 increased 5.5% from the previous year, to 15,541 million m3. Of this amount, residential demand was 3,482 million m3 (a 0.9% increase), due mainly to an increase in the number of customers from the previous year.

Commercial demand was 2,750 million m3 (a 3.3% decrease), with a decline in air-conditioning demand due mainly to cooler temperature in the first half of FY2014 and warmer temperature in the second half of FY2014 than the previous year.

Industrial demand was 7,235 million m3 (a 12.5% increase), primarily driven by the expanding demand for industrial-use, especially for power generation, which more than offset a decline in operation of existing facilities.

Wholesale supplies to other gas utilities grew 3.3%, to 2,074 million m3 due to a growth in customer demand.

Reflecting the increase in gas sales volume and upward gas unit price adjustments under the gas rate adjustment system, city gas sales grew JPN 135.8 billion, or 9.0%, to JPN 1,640.9 billion.

With a rise in LNG prices from the weaker yen accompanied by an increase in gas sales volume, total operating expenses rose 9.7%, by JPN 131.2 billion.

As a result, segment profit increased JPN 4.5 billion, or 2.9%, to JPN 157.1 billion.