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Tokyo Electric reports $15 billion net loss after earthquake, tsunami

By Kyung Lah and Yoko Wakatsuki, CNN
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TEPCO reports massive losses
  • Tokyo Electric says it will decommission four reactors at the Fukushima Daiichi nuclear plant
  • The company president and vice president announce their resignations
  • Tokyo Electric hopes to save more than a trillion yen by cutting payroll and salaries, and selling real estate
  • A March 11 earthquake and tsunami crippled the plant

Tokyo (CNN) -- Hammered by a nuclear accident at its Fukushima Daiichi power plant, Tokyo Electric Power Co. on Friday reported a net loss of 1.2 trillion yen ($15.4 billion) for the fiscal year that ended March 31.

Tokyo Electric also announced it will decommission reactors Nos. 1-4 at Fukushima Daiichi. It also has canceled plans to build two other reactors at the site.

In addition to the company's earnings, Tokyo Electric president Masataka Shimizu announced his resignation Friday, which must be approved by the board of directors at a June meeting.

"The accident compromised our confidence in the safety of nuclear power," Shimizu said. "We have caused problems and anxiety to the public."

Managing Director Toshio Nishizawa has been tapped to replace the president.

"We are facing the gravest crisis in the history of the company," Nishizawa said. "I feel the enormous gravity of the responsibility to assume the position of the president ... so I accepted the position."

Vice Presidents Sakae Mutoh and Makio Fujiwara also tendered their resignations, as did Director Tomijirou Morita.

A restructuring plan was announced to boost company finances and help create more than a trillion yen in savings by selling off real estate, cutting pay and reducing staff.

The Fukushima Daiichi plant has faced a series of setbacks since a magnitude 9.0 earthquake and tsunami struck on March 11. The disasters triggered a glitch in the plant's cooling system, and caused radiation to leak.

As crews work to bring the problems under control, the government said this week it would compensate more than 78,000 displaced by the nuclear disaster.

Tokyo Electric has made a down payment on compensation of 1 million yen (about $12,000) per household to some families.

Some analysts say total compensation could amount to more than 10 trillion yen ($124 billion).

The government has set no ceiling on the compensation and Tokyo Electric will be required to pay back the money spent out of a government-backed fund.

The shadow cast by Fukushima Daiichi has inflicted yet-unknown losses on farmers, fishermen and shopkeepers. And looming compensation costs have darkened the future of Tokyo Electric, a $157 billion company that could still be driven into some form of government receivership by the nuclear disaster.

CNN's Kyung Lah and Yoko Wakatsuki contributed to this report