Tepco shares plunge to record low

Shares in Tokyo Electric Power Company (Tepco) have plunged to a record low as uncertainty over the crisis at the Fukushima Daiichi nuclear plant continues.

Tepco shares fell 18% on Tuesday to close at 362 yen.

Asia’s biggest power company has been struggling to contain radiation leaks at the plant which was damaged by the earthquake and tsunami on 11 March.

Tepco shares have lost more than 80% of their value since the quake struck.

The company’s previous all-time low closing price was 393 yen back in 1951.

Nuclear crisis

The company’s Fukushima Daiichi nuclear plant was the worst hit by the earthquake and tsunami.

As well as radiation leaking into the atmosphere, water contaminated with radioactive material has been channelled into the sea, raising new environmental worries.

As the company struggles to contain the radiation leak, its stock price has tumbled.

Investors have also reacted negatively to speculation that the company may be nationalised, despite Prime Minister Naoto Kan dismissing those reports.

Analysts say markets are worried that even if the company overcame the radiation crisis now, it may still face lawsuits asking for compensation.

Some analysts have estimated that the company may have to pay as much as 10 trillion yen ($120bn; £74bn) in claims.

Lost power

Compensation claims are the not the only worry for the company and its investors.

Its profits are likely to to be hit hard in the aftermath of the quake and tsunami.

Tepco is the fourth-largest power company in the world. It supplies about one-third of Japan’s electricity in some of its most densely populated and economically important areas.

The damage caused to the Fukushima Daiichi nuclear plant has hit its power generating capacity, resulting in blackouts around the country.

As the company struggles to replenish the lost power, analysts say revenues are likely to be hit and profits dented.

The company also announced that it will delay the release of its financial results as it assesses the total damage caused by the earthquake and tsunami.