Operating burden from soaring energy costs
First written in FY2023-Q3. 2 of 5 entries say "Worsened", first in FY2024-Q2. Latest entry: FY2026.
New Japan Chemical moved to the "Worse" side of this theme in 2023, the same year as the typical company in this theme.
The whole theme swung hardest in 2026: 8 of 10 companies on the "Worse" side.
4 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「In the chemical industry, demand for semiconductor materials expanded with the spread of generative AI, while surging naphtha prices and deteriorating market conditions for general-purpose products due to stagnant demand in China put pressure on earnings.」
Soaring energy and raw material prices continue to be cited as factors weighing on earnings. - FY2025-H1SoftenedAnnual report
「Energy price volatility has continued against a backdrop of heightened international tensions, among other factors,」
The wording has changed from the previous period's “substantial increase in raw material and energy costs” to “continued volatility in energy prices” for the current interim period. However, uncertainty about the outlook remains. - FY2024WorsenedAnnual report
「However, against a challenging business environment marked by the spread of COVID-19, a substantial increase in raw material and energy costs, and the prolonged stagnation of the Chinese economy, delays in transforming our earnings structure led us to revise down our management targets for FY2025.」
The substantial increase in raw material and energy costs was explicitly identified as a factor behind delays in earnings structure reform and the downward revision of medium-term targets. - FY2024-Q2WorsenedAnnual report
「Profitability was also adversely affected, and we were forced to operate under challenging conditions due to factors including deterioration in profitability caused by persistently high fuel prices and higher equipment maintenance costs resulting from soaring material prices.」
The impact of soaring energy costs has continued and become more specific in the form of deteriorating profitability due to persistently high fuel prices, compounded by higher equipment maintenance costs resulting from soaring material prices. - FY2023-Q3First statedAnnual report
「Although crude oil and vegetable oil prices, the raw materials, were on a downward trend, the Group was forced to operate under difficult business conditions due to the impact of surging energy prices.」
Separately from the decline in crude oil and vegetable oil prices, soaring energy prices are being explicitly identified for the first time as a direct burden on business operations.