Risk of inventory valuation losses and higher cost of sales during periods of declining crude oil prices
First written in FY2018. 5 of 11 entries say "Mitigated", first in FY2021. Latest entry: FY2026.
Cosmo Energy Holdings moved to the "Worse" side of this theme in 2019, the same year as the typical company in this theme.
2 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「The ending inventory balance is stated after a write-down of carrying value due to reduced profitability, and the following inventory valuation losses (△ indicates a reversal) are included in cost of sales: previous consolidated fiscal year, ¥11,672 million; current consolidated fiscal year, △¥6,845 million」
Inventory valuation losses changed from ¥11.672 billion in the previous fiscal year to a reversal of ¥6.845 billion in the current fiscal year, reducing the impact of inventory valuation risk. - 2026-05-12MitigatedRevision to earnings forecast
「原油高の影響により在庫評価損が縮小し、親会社株主に帰属する当期純利益が増加となりました。」
原油高により在庫評価損が縮小し、在庫評価リスクの影響が低減したことを示している。 - FY2025MaterialisedAnnual report
「The ending inventory balance is stated after a write-down of carrying value due to reduced profitability, and the following inventory valuation losses (△ indicates a reversal) are included in cost of sales: previous consolidated fiscal year, △¥8,246 million; current consolidated fiscal year, ¥11,672 million」
Following the excess reversal in the previous fiscal year, the company recorded an inventory valuation loss of ¥11.672 billion in the current fiscal year. The inventory valuation risk associated with falling crude oil prices became significant again in actual results. - FY2024MitigatedAnnual report
「The ending inventory balance is stated after a write-down of carrying value due to reduced profitability, and the following inventory valuation losses (△ indicates a reversal) are included in cost of sales: previous consolidated fiscal year, ¥9,163 million; current consolidated fiscal year, △¥8,246 million」
Inventory valuation losses changed from ¥9.163 billion in the previous fiscal year to an excess reversal of ¥8.246 billion in the current fiscal year, reducing the impact of inventory valuation associated with falling crude oil prices. - FY2023Valuation losses and reversals both recordedAnnual report
「Inventory valuation losses included in cost of sales: ¥1,0528 million; reversal of the write-down of carrying value under the replacement-cost method: △¥1,364 million; amount after offsetting against inventory valuation losses: △¥9,163 million」
In the current fiscal year, the company recorded inventory valuation losses of ¥1,0528 million, while the amount after offsetting against reversals under the replacement-cost method was negative ¥9,163 million, so the impact of valuation losses and reversals coexisted. - FY2022MitigatedAnnual report
「Inventory valuation losses included in cost of sales: ¥1,364 million; reversal of the write-down of carrying value under the replacement-cost method: △¥1,230 million; amount after offsetting against inventory valuation losses: △¥134 million」
Regarding the inventory valuation risk that became significant in the previous fiscal year, the net amount after offsetting was negative ¥134 million in the current fiscal year, indicating a reduced impact. - FY2021MitigatedAnnual report
「Inventory valuation losses included in cost of sales: ¥1,230 million; reversal of the write-down of carrying value under the replacement-cost method: △¥40,177 million; amount after offsetting against inventory valuation losses: ¥38,946 million」
A reversal of the large inventory valuation loss incurred in the previous fiscal year occurred, and the valuation loss for the current fiscal year was ¥1,230 million. The impact of the risk from falling crude oil prices decreased from the previous fiscal year. - FY2020MaterialisedAnnual report
「Inventory valuation losses incurred during the current consolidated fiscal year are included in cost of sales.」
The impact of inventory valuation losses on cost of sales was recorded as ¥40,177 million, not ¥40,177 billion, and the oil business posted a segment loss of ¥47.8 billion. The risk from falling crude oil prices was reflected in actual results. - FY2019MaterialisedAnnual report
「Meanwhile, due in part to the impact of inventory valuation losses resulting from fluctuations in crude oil prices, segment profit was ¥14.2 billion, down ¥44.6 billion from the previous fiscal year.」
The impact of inventory valuation resulting from crude oil price fluctuations was reflected in full-year profit for the oil business, with segment profit decreasing by ¥44.6 billion from the previous fiscal year. - FY2019-Q3MaterialisedAnnual report
「Meanwhile, due to the impact of inventory valuation resulting from fluctuations in crude oil prices and higher costs from periodic repairs, segment profit was ¥14.4 billion, down ¥29.9 billion year on year.」
The impact of inventory valuation resulting from crude oil price fluctuations was reflected in segment profit for the oil business, which decreased by ¥29.9 billion year on year. - FY2018First statedAnnual report
「When crude oil prices decline, the unit cost of inventory at the beginning of the period is averaged with the lower unit cost of inventory purchased during the period, which raises cost of sales and may affect operating results and financial position.」
Among the risks associated with crude oil price fluctuations, the company newly disclosed the specific mechanism whereby inventory valuation under the weighted-average cost method raises cost of sales.