Chubu Electric Co. and Tokyo Electric Power Co. shares declined after both utilities reported quarterly earnings were hurt by surging fuel costs, which coincided with the expiration of a power supply agreement. The Bloomberg Markets report highlights how rising energy prices continue to pressure Japan's major power providers.

The earnings impact reflects broader challenges facing Japanese utilities as global fuel markets remain volatile. Both companies cited higher procurement costs for liquefied natural gas and coal as primary drivers of the profit decline. The timing of the power supply agreement's end amplified the financial pressure.

Investors reacted negatively to the outlook, sending shares lower in Tokyo trading. Analysts note that without a restart of nuclear reactors or a sustained drop in fuel prices, utilities may face continued margin compression in coming quarters.

The results underscore the structural vulnerability of Japan's power sector to external commodity shocks, particularly given the country's heavy reliance on imported energy.