Revision of Consolidated Earnings Guidance for Fiscal Year 2025

Overview of Revision to Consolidated Earnings Guidance for Fiscal Year 2025

Hokkaido Electric Power Company, Incorporated has revised its consolidated earnings guidance for fiscal year 2025, initially announced on January 30, 2026. Net sales are expected to decrease by 11 billion yen to approximately 856 billion yen due to a decline in retail electricity sales volume. On the other hand, ordinary income is revised upward by 18 billion yen to approximately 61 billion yen, and net income attributable to owners of parent is also revised upward by 16 billion yen to around 44 billion yen, reflecting reductions in oil-fired power plant operations, efforts to expand earnings and reduce expenses, and the timing shift of miscellaneous expense payments. Retail and other companies’ electricity sales volume is projected to decrease by 0.5 billion kWh to about 34.1 billion kWh due to reduced heating demand caused by high temperatures in winter.

Factors Affecting Earnings Fluctuation and Future Outlook

The increase in ordinary income is attributable to cost reductions from decreased oil-fired power plant operations, profit growth in group companies, initiatives to expand earnings and reduce expenses, and timing shifts of miscellaneous expense payments. Exchange rate fluctuations and crude oil CIF price changes are also considered, with crude oil price forecasted at approximately 71.0 dollars per barrel, remaining unchanged from the previous forecast. Hokkaido Electric Power plans to announce its fiscal year 2025 financial results on April 28, 2026; this revised guidance reflects the most recent developments.