Shares in Tokyo Electric Power Co (TEPCO) plunged to their lowest ever close on the Nikkei yesterday, with no end in sight to the world’s worst nuclear accident since Chernobyl in 1986. TEPCO dived 18.10 percent to close limit-down at ¥362 amid concerns it will face huge compensation bills, as the operator of the stricken Fukushima Dai-ichi plant dumped radioactive water into the sea. The crisis remains unresolved after the plant’s reactor cooling systems were knocked out, triggering explosions and fires, and releasing radiation.
The plant has emitted radioactive materials into the air, contaminating farm produce and drinking water. Radioactive water has seeped into the Pacific Ocean but officials stress there is no imminent health threat.
Yesterday’s close compared with the previous low of ¥393 set in 1951, and far from its record high of ¥9,420 set in April 1987. TEPCO shares have lost more than 80 percent of their pre-earthquake value. On Tuesday a TEPCO spokesman said the company had decided to postpone its earnings report for the fiscal year ended last month, but has not set a date.
Japan’s biggest utility on Monday started releasing 11,500 tonnes of water containing about 100 times the legal limit for radioactive material as an emergency measure to free up space for more contaminated water at the plant. In the battle to prevent full reactor meltdowns, thousands of tonnes of water have been poured on to overheating fuel rods, a stop-gap measure that has created highly radioactive run-off.
To free up storage space for that run-off TEPCO said it would have to get rid of less toxic water.
It insisted the release of the water would not harm marine life or seafood safety.
“A couple of weeks ago, the company said all they have to do is to cool the reactors, but the situation doesn’t seem to be improving,” a trader at a Japanese brokerage told Dow Jones Newswires. “Compensation to be paid will likely balloon with this contaminated water release.”
Some analysts estimate TEPCO could face compensation claims of more than ¥10 trillion (US$120 billion). The company last week said it had secured ¥2 trillion in funding but that this would not be enough. Japanese Prime Minister Naoto Kan last week moved to dismiss speculation the government is planning to nationalize the company as it faces mounting compensation obligations, although TEPCO has said it may need state help to meet them. The Yomiuri Shimbun yesterday reported TEPCO has decided to offer provisional damages payments to residents and farmers near the plant, before official figures are estimated.
The dumping into the sea of radioactive water has cast concerns on the earnings of the fishery industry, dealers said. Nippon Suisan Kaisha was down 4.93 percent at ¥212 and Maruha Nichiro Holdings fell 2.54 percent to ¥115 yesterday.
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