The Japanese gas utility Tokyo Gas has released its 2019-2020 annual report and posted a 49% fall in net profit to JPY 43bn (US$405m), due to falling gas sales and significant impairment losses on upstream assets overseas, especially in shale gas projects in Texas (United States) and in the Ichthys LNG project in Australia. In Japan, city gas sales fell by 8.8% to 13.9 bcm in a context of increased competition in the liberalised energy market (-3.6% for residential consumers as the number of retail customers fell by 7% and -14% in gas sales for industrial consumers, including power utilities). Tokyo Gas's electricity sales rose by 33% to 20.6 TWh as the number of its retail electricity consumers rose by 35% to 2.35 million.
The group has not provided any profit guidance for the 2020-2021 financial year but has announced that it would not change its investment plan overseas and would continue to invest in infrastructure projects in Southeast Asia. As well, Tokyo Gas will maintain LNG procurement levels, in spite of a lower gas demand due to the COVID-19 outbreak.