Recognition of non-operating income (gain on valuation of foreign exchange forward contracts)
石狩バイオエナジー合同会社 and OKUMURA CORPORATION in its consolidated financial statements
The power generation facility operated by 石狩バイオエナジー合同会社 and long-term foreign exchange forward contracts related to fuel procurement transactions during the operating period
An explosion occurred at the power generation facility operated by 石狩バイオエナジー合同会社 on 19 July 2024, causing the requirements for applying hedge accounting to no longer be met. Hedge accounting was therefore discontinued from the second quarter (interim period) of the fiscal year ended March 2025.
¥6,156 million, expected to be recognized as a gain on valuation of foreign exchange forward contracts under non-operating income in the consolidated statement of income
Fiscal year ending March 2026
The consolidated earnings forecast for the fiscal year ending March 2026 incorporates the gain on valuation of foreign exchange forward contracts. See the separate notice issued today, "Notice Regarding Revisions to the Earnings Forecast and Dividend Forecast."
In the consolidated financial results for the fiscal year ending March 2026, a gain on valuation of foreign exchange forward contracts of ¥6,156 million is expected to be recognized as non-operating income. This gain will not be included in the calculation of the dividend payout ratio during the period covered by the medium-term management plan.
| Item | Details |
|---|---|
| Event name | Recognition of non-operating income (gain on valuation of foreign exchange forward contracts) |
| Date of occurrence | As of the fiscal year-end for the fiscal year ending March 2026 (specific date: Not disclosed) |
| Subject Entity | 石狩バイオエナジー合同会社 and OKUMURA CORPORATION in its consolidated financial statements |
| Target Locations / Products | The power generation facility operated by 石狩バイオエナジー合同会社 and long-term foreign exchange forward contracts related to fuel procurement transactions during the operating period |
| Cause | An explosion occurred at the power generation facility operated by 石狩バイオエナジー合同会社 on 19 July 2024, causing the requirements for applying hedge accounting to no longer be met. Hedge accounting was therefore discontinued from the second quarter (interim period) of the fiscal year ended March 2025. |
| Amount of Impact on Business Performance | ¥6,156 million, expected to be recognized as a gain on valuation of foreign exchange forward contracts under non-operating income in the consolidated statement of income |
| Accounting period in which recognized | Fiscal year ending March 2026 |
| Impact on Earnings Forecast | The consolidated earnings forecast for the fiscal year ending March 2026 incorporates the gain on valuation of foreign exchange forward contracts. See the separate notice issued today, "Notice Regarding Revisions to the Earnings Forecast and Dividend Forecast." |
| Outlook | In the consolidated financial results for the fiscal year ending March 2026, a gain on valuation of foreign exchange forward contracts of ¥6,156 million is expected to be recognized as non-operating income. This gain will not be included in the calculation of the dividend payout ratio during the period covered by the medium-term management plan. |
Items this document does not state (16)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.An explosion occurred at a power generation facility operated by a consolidated subsidiary, causing the requirements for hedge accounting to no longer be met. As a result, gains and losses from the fair-value measurement of foreign exchange forward contracts are being recognized as non-operating income or non-operating expenses.