Risk of fluctuations in electricity procurement prices
First written in FY2021-Q1. 5 of 9 entries say "Mitigated", first in FY2021-Q3. Latest entry: FY2023.
The whole theme swung hardest in 2022: 5 of 6 companies on the "Worse" side.
1 other company's latest entry also says "Mitigated".
- FY2023MitigatedAnnual report
「In the Other business segment, the company entered into a business alliance agreement with 株式会社エコログ, which conducts electricity supply operations, and, as an agent, offers “Nexyz Electricity” under its own service name.」
Because electricity supply operations have been transferred to an external company and the company continues to operate solely as an agent, its direct exposure to electricity procurement price fluctuations has been reduced. - FY2023-Q1MitigatedAnnual report
「In Other, the Company provides retail electricity under the product name ネクシィーズ電力 (Nexyz Power). During the cumulative first quarter of the current consolidated fiscal year, it proceeded with transferring customers to other companies and reduced the scale of the business.」
Following the transfer of electricity supply operations to an external provider, the company is proceeding with the transfer of customers and a reduction in business scale, indicating a further reduction in its exposure to electricity procurement price volatility. - FY2022MitigatedAnnual report
「In May 2022, the company entered into a business alliance agreement with 株式会社エコログ, transferred its electricity supply operations, and shifted to a business model under which it provides only agency services. As a result, during the second half, it was largely no longer affected by surging electricity costs」
Amid continued surges in energy resource and electricity procurement prices, the company addressed the issue by transferring supply operations and shifting to agency services, thereby reaching a position in which it was largely unaffected by higher costs during the second half. - FY2022-Q3MitigatedAnnual report
「During the cumulative third quarter of the current consolidated fiscal year, electricity procurement prices continued to rise due to surging prices for energy resources such as crude oil and liquefied natural gas (LNG). In May 2022, the company entered into a business alliance agreement with 株式会社エコログ, transferred its electricity supply operations, and shifted to a business model under which it provides only agency services.」
Although electricity procurement prices continued to rise due to higher crude oil and LNG prices, the company took steps to reduce price volatility risk by transferring electricity supply operations under a business alliance and shifting to agency services. - FY2022-Q2MaterialisedAnnual report
「During the cumulative second quarter of the current consolidated fiscal year, electricity demand increased strongly, but wholesale electricity market prices remained high as global prices for energy resources such as crude oil and liquefied natural gas (LNG) continued to surge, resulting in higher cost of sales.」
Electricity procurement price volatility risk continued to materialize in the form of higher cost of sales caused by surging prices for energy resources such as crude oil and LNG and persistently high wholesale electricity market prices. - FY2022-Q1MaterialisedAnnual report
「In the electricity market, procurement prices had been rising earlier than usual due to surging fuel prices and higher operating costs for renewable energy, among other factors. As a result, the electricity retail business recorded net sales of ¥544 million, compared with ¥404 million in the same quarter of the previous year, and a segment loss of ¥123 million, compared with segment profit of ¥30 million.」
Continued increases in electricity procurement prices caused the electricity retail business to swing from segment profit of ¥30 million in the same quarter of the previous year to a segment loss of ¥123 million. - FY2021-Q3MitigatedAnnual report
「Although electricity procurement prices rose sharply during the cumulative second quarter, procurement prices subsequently stabilized and earnings recovered from April to June 2021.」
The sharp rise in electricity procurement prices during the second quarter subsequently stabilized, and earnings recovered from April to June, according to the disclosure. - FY2021-Q2MaterialisedAnnual report
「Cost of sales increased substantially due to a sharp rise in procurement prices from December 2020 to January 2021. Procurement prices returned to normal levels from February 2021 onward.」
Electricity procurement price volatility risk materialized in the form of a sharp rise in procurement prices and increased costs from December 2020 to January 2021. The company states that prices returned to normal levels from February 2021 onward. - FY2021-Q1First statedAnnual report
「The electricity sold to customers is procured from the market, and procurement prices may fluctuate substantially due to fuel prices, foreign exchange rates, and seasonal factors, potentially affecting the Group's performance.」
The company identified for the first time that fluctuations in the procurement prices of market-sourced electricity due to fuel prices, foreign exchange rates, and seasonal factors represent a performance risk.