Profitability risk in the retail electricity business from fluctuations in electricity market prices
First written in FY2019. 6 of 10 entries say "Materialised", first in FY2021-Q3. Latest entry: FY2024.
Restar moved to the "Worse" side of this theme in 2022, 1 year after the typical company in this theme (2021).
The whole theme swung hardest in 2022: 6 of 7 companies on the "Worse" side.
2 other companies' latest entry also says "Mitigated".
- FY2024MitigatedAnnual report
「Segment profit increased substantially, mainly due to stable electricity procurement prices in the retail electricity business and contributions from the company’s owned power generation assets.」
Amid continued risk from fluctuations in electricity market prices and procurement costs, stable procurement prices and contributions from owned power generation assets led to a substantial improvement in profit in the environmental energy business. - FY2024-Q3MitigatedAnnual report
「Segment profit benefited significantly from stable electricity procurement prices in the retail electricity business.」
Regarding the profitability risk in the retail electricity business from fluctuations in electricity market prices and procurement costs, it states that stable electricity procurement prices contributed to earnings, turning a loss in the same period of the previous year into a profit. - FY2023MaterialisedAnnual report
「Revenue in the retail electricity business increased substantially due to higher fuel adjustment charges.」
Higher fuel and electricity procurement prices have actually affected the earnings and revenue structure of the retail electricity business. - FY2023-Q3MaterialisedAnnual report
「The retail electricity business reported lower profit owing to losses from soaring electricity procurement prices since the beginning of the period, as well as losses resulting from higher electricity costs in the plant factory business.」
Higher electricity procurement prices have materialized in actual results as a loss in the retail electricity business. - FY2023-Q2MaterialisedAnnual report
「The retail electricity business posted a substantial profit decline due to the impact of soaring electricity procurement prices resulting from higher resource prices.」
Higher electricity procurement prices resulting from higher resource prices have materialized in actual results as lower profit in the retail electricity business. - FY2023-Q1MaterialisedAnnual report
「Revenue in the retail electricity business increased, partly due to higher demand from the public-sector market. Segment profit declined substantially due to the significant impact of soaring procurement prices in the retail electricity business, despite higher profit in the energy business.」
While soaring electricity procurement prices actually reduced profit in the retail electricity business, revenue increased due to higher demand from the public-sector market. - FY2022-Q1MaterialisedAnnual report
「The retail electricity business reported lower revenue owing to declining demand and soaring procurement prices.」
The profitability risk in the retail electricity business from fluctuations in electricity market prices and procurement costs has materialized in actual results as higher procurement prices and lower revenue. - FY2021MitigatedAnnual report
「Sales in the retail electricity business declined, mainly among government agencies and other public-sector customers. In response to higher spot prices, the company is pursuing a strategy to minimize exposure to market fluctuations by operating its gas-fired power plants and procuring electricity outside the spot market.」
As spot prices rose, the company sought to limit the impact by operating gas-fired power plants and procuring electricity through off-auction purchases. - FY2021-Q3MaterialisedAnnual report
「Power shortages occurred due in part to the impact of a recent cold wave and insufficient LNG procurement, and wholesale electricity prices continued to surge.」
It states that the risk of fluctuations in electricity market prices materialized in the form of power shortages and surging wholesale prices caused by the cold wave and insufficient LNG procurement. - FY2019First statedAnnual report
「Significant fluctuations in electricity market prices caused by higher crude oil prices, substantial foreign-exchange movements, the suspension of nuclear power plant operations due to natural disasters and other factors could affect the profitability of the retail electricity business and, in turn, the group’s business performance.」
It identifies fluctuations in electricity market prices caused by crude oil prices, foreign exchange and nuclear power plant shutdowns as a profitability risk for the retail electricity business.