TOKYO, April 28 (Reuters) - Japan's Kyushu Electric Power Co (9508.T) will issue 200 billion yen ($1.5 billion) in preferred shares to help fund its green transition at a time when high fuel prices are weighing on its profitability, the company said on Friday.
Japanese utilities were hit by high fuel costs last year as a post-pandemic energy crisis was exacerbated by Russia's invasion of Ukraine. The government delayed a request from a number of companies to raise energy prices as it tries to rein in inflation.
Kyushu Electric said the Class B preferred shares are to be bought by Mizuho bank, Development Bank of Japan and MUFG bank. The power firm will meanwhile acquire and cancel existing Class A preferred shares worth 100 billion yen held by the same group of investors.
On Friday, the company forecast a net profit of 90 billion yen in the fiscal year ending March 31, 2024, after posting a 56.4 billion loss in 2022/23.
($1 = 135.6300 yen)
