As 12 of its 17 nuclear plants remained shut, boosting the cost of thermal power generation, the world's biggest private power utility said it would step up cost-cutting efforts to secure a limited gain in its annual net profit.

TEPCO's group net profit in the six months to September amounted to 86.8 billion yen (796 million dollars), down from 155.9 billion yen a year before, the company said in a statement.

TEPCO shut down all 17 of its nuclear reactors earlier this year for safety checks after scandals over the systematic cover-up of inspection data showing cracks in reactors.

Five of the reactors have since been restarted but "it is not yet known when the 12 others will resume operation," a TEPCO spokesman said.

The group's half-year revenue fell 2.1 percent from a year earlier to 2.4 trillion yen and its recurring profit tumbled 45.2 percent to 137.1 billion yen.

For the full year to March 2004, TEPCO forecast its consolidated net profit to reach 175 billion yen, up 5.9 percent from 165.3 billion yen in the previous year.

Its annual revenue was estimated at 4.87 trillion yen, down 1.0 percent from the previous year, and its recurring profit was projected to total 270 billion yen, almost flat from the previous year's 271.1 billion yen.

TEPCO's sales of electricity fell 2.4 percent in the six month period from a year earlier to 137.7 billion kilowatt-hours as the cool summer reduce the use of air conditioners, the statement said.

Meanwhile, the group's current expenditure increased 3.0 percent to 2.3 trillion yen due as the shutdown of nuclear reactors boosted costs of thermal power generation and purchases of electricity from other companies, it added.

Annual sales of electricity are expected to fall 1.6 percent to 277.5 billion kilowatt-hours as an increase in demand for industrial use will be offset by a fallback in volume due to exceptionally high consumption in the previous winter which was unusually cold, the company said.

WAR.WIRE