23-06-2011, 09:52 AM
TEPCO didn't book the victim compensation cost in their quarter report. I'm not sure why. Isn't it good to book all the potential losses at one go? then later write back, if the actual expense is lower. That will look better to the investors
The media has estimated that the compensation will be in US$100b, which I think is overblown. And from the report below, I believe TEPCO will only pay about US$1.5b to 3b to the victims.
* JUNE 22, 2011, 3:17 A.M. ET
Tepco Books Additional Y88B Loss For Payments To Nuclear Accident Evacuees
TOKYO (Dow Jones)--Tokyo Electric Power Co. (9501.TO) on Wednesday revised its earnings results, noting that it has now booked additional losses of Y88 billion to cover compensation to evacuees from areas around the Fukushima Daiichi nuclear complex and Y38 billion for extra provisions to bring the crippled plant under control.
The utility reported in May a net loss of Y1.247 trillion for the 12 months ended March. The loss was the biggest annual loss in Japanese corporate history outside the financial sector.
The revision is considered an important subsequent event and will be reflected in the company's annual financial report due later this month.
Tepco said the additional Y88 billion loss would pay for compensation related to psychological distress suffered by the nuclear disaster evacuees. The company raised the provision for bringing the crippled nuclear plant under control by Y38 billion to Y869.7 billion.
-By Hiroyuki Kachi, Dow Jones Newswires; 813-6269-2789; Hiroyuki.Kachi@dowjones.com
The media has estimated that the compensation will be in US$100b, which I think is overblown. And from the report below, I believe TEPCO will only pay about US$1.5b to 3b to the victims.
* JUNE 22, 2011, 3:17 A.M. ET
Tepco Books Additional Y88B Loss For Payments To Nuclear Accident Evacuees
TOKYO (Dow Jones)--Tokyo Electric Power Co. (9501.TO) on Wednesday revised its earnings results, noting that it has now booked additional losses of Y88 billion to cover compensation to evacuees from areas around the Fukushima Daiichi nuclear complex and Y38 billion for extra provisions to bring the crippled plant under control.
The utility reported in May a net loss of Y1.247 trillion for the 12 months ended March. The loss was the biggest annual loss in Japanese corporate history outside the financial sector.
The revision is considered an important subsequent event and will be reflected in the company's annual financial report due later this month.
Tepco said the additional Y88 billion loss would pay for compensation related to psychological distress suffered by the nuclear disaster evacuees. The company raised the provision for bringing the crippled nuclear plant under control by Y38 billion to Y869.7 billion.
-By Hiroyuki Kachi, Dow Jones Newswires; 813-6269-2789; Hiroyuki.Kachi@dowjones.com