Risk of fluctuations in natural gas revenue from the transition to LNG market price-linked contracts
First written in FY2017. 2 of 4 entries say "Restated". Latest entry: FY2022.
3 other companies' latest entry also says "Restated".
- FY2022RestatedAnnual report
「The company is taking measures including appropriately passing fluctuations in LNG procurement prices on to selling prices. However, if LNG procurement prices rise over a short period, the company may be unable to pass through the increase sufficiently, which may adversely affect the financial condition and operating results of the group.」
The company continues to identify the risk of fluctuations in revenue and profit due to changes in LNG procurement prices and insufficient pass-through to selling prices. - FY2020RestatedAnnual report
「The company is taking measures including appropriately passing fluctuations in LNG procurement prices on to selling prices. However, if it is unable to pass through those fluctuations sufficiently, this may adversely affect the financial condition and operating results of the group.」
The company continues to identify the risk that LNG market-linked pricing may result in fluctuations in procurement prices and an inability to pass them on to selling prices. - FY2018WorsenedAnnual report
「The transition to contracts under which prices are determined based on LNG market prices is nearly complete, increasing the likelihood that revenue will be affected by international market conditions and foreign exchange movements.」
The shift from fixed yen-denominated contracts to LNG market-linked contracts is described as "nearly" complete, making the exposure to sales fluctuations from market conditions and foreign exchange movements more apparent. - FY2017First statedAnnual report
「Historically, the majority of the company's natural gas sold in Japan was priced in yen at fixed rates throughout the fiscal year under contracts with customers. However, the company is transitioning to contracts under which prices are determined based on LNG market prices, increasing the likelihood that revenue will be affected by international market conditions and foreign exchange movements.」
Natural gas sales contracts are shifting from fixed yen-denominated pricing to LNG market-linked pricing, increasing the potential for sales fluctuations due to market conditions and foreign exchange movements.