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 (the Company's consolidated subsidiary)
The power generation facilities of 石狩バイオエナジー合同会社 and long-term foreign exchange contract arrangements related to fuel procurement transactions during the operating period
A valuation gain arose from the mark-to-market valuation of the outstanding unsettled balance of the foreign exchange contracts. In addition, an explosion occurred at the company's power generation facility on 19 July 2024. As the requirements for applying hedge accounting were no longer met, hedge accounting has not been applied since the second quarter of the fiscal year ended March 2025.
¥1,463 million (recognized as a gain on valuation of foreign exchange contracts under non-operating income in the consolidated income statement)
First quarter of the fiscal year ending March 2027
The recognition of this gain on the valuation of foreign exchange contracts will not result in any revision to the consolidated earnings forecast for the fiscal year ending March 2027.
Although the outlook for foreign exchange rates and other factors remains uncertain, the recognition of this gain on the valuation of foreign exchange contracts will not result in any revision to the consolidated earnings forecast for the fiscal year ending March 2027. The valuation 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) |
| Subject Entity | 石狩バイオエナジー合同会社 (the Company's consolidated subsidiary) |
| Target Locations / Products | The power generation facilities of 石狩バイオエナジー合同会社 and long-term foreign exchange contract arrangements related to fuel procurement transactions during the operating period |
| Cause | A valuation gain arose from the mark-to-market valuation of the outstanding unsettled balance of the foreign exchange contracts. In addition, an explosion occurred at the company's power generation facility on 19 July 2024. As the requirements for applying hedge accounting were no longer met, hedge accounting has not been applied since the second quarter of the fiscal year ended March 2025. |
| Amount of Impact on Business Performance | ¥1,463 million (recognized as a gain on valuation of foreign exchange contracts under non-operating income in the consolidated income statement) |
| Accounting period in which recognized | First quarter of the fiscal year ending March 2027 |
| Impact on Earnings Forecast | The recognition of this gain on the valuation of foreign exchange contracts will not result in any revision to the consolidated earnings forecast for the fiscal year ending March 2027. |
| Outlook | Although the outlook for foreign exchange rates and other factors remains uncertain, the recognition of this gain on the valuation of foreign exchange contracts will not result in any revision to the consolidated earnings forecast for the fiscal year ending March 2027. The valuation 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 (17)
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.The Company recognized a gain on the valuation of foreign exchange contracts as a result of marking to market the outstanding unsettled balance of those contracts as of the fiscal year-end. Following an explosion at a power generation facility of a consolidated subsidiary, the requirements for applying hedge accounting were no longer met. Accordingly, gains and losses on the mark-to-market valuation of the foreign exchange contracts are recognized as non-operating income or non-operating expenses.