J-Power, a Japanese gas-power company, will sell its stake to a US gas-power company
J-Power, a subsidiary of Japan's Electric Power Development, announced on Thursday that it had decided to sell its 50 percent stake in an American gas-fired energy company as part a reshuffle to its asset portfolio. This was done to increase capital efficiency.
ACR IV Frontier Holdings, an investment fund, will purchase the Japanese utility's stake in Tenaska Frontier Partners, which operates a gas-fired 830 megawatt (MW), power station in Texas, for $155 millions.
J-Power is expecting to book $93,000,000 in investment income after the transfer. However, it's unclear whether this will reflect in the current fiscal year or the next, according to the company.
J-Power announced in June that it would sell its 50% stake in Green Country Energy in the United States, a gas-fired generator with a 795-MW power station located in Oklahoma. The company sold it to Public Service Company of Oklahoma (a subsidiary of American Electric Power) for an undisclosed amount.
Isshu Kurata, Executive Vice President, said at a press conference that the company's mid-term plan aims to move its portfolio towards renewable energy.
J-Power reported Thursday a net income of 48.34 trillion yen, up 74% compared to the same period last year, thanks to higher margins at its domestic power generation business.
The company lifted its net profit forecast for the fiscal year to March 2025 by 52% to 64 billion yen, pointing to stronger gains in its thermal power business and a higher contribution from its stake in Australian coal mines due to firmer-than-anticipated coal prices. (Reporting and editing by Jason Neely; Yuka Obayashi)
(source: Reuters)