Risk of electricity supply constraints and rising electricity costs
First written in FY2020. 8 of 14 entries say "Worsened", first in FY2023-Q1. Latest entry: FY2026.
Hokuetsu Metal moved to the "Worse" side of this theme in 2022, 5 years after the typical company in this theme (2017).
1 other company's latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Electricity charges may also fluctuate substantially depending on trends in oil, liquefied natural gas, foreign exchange rates, geopolitical risks and other factors, potentially affecting the Group's operating results and financial condition.」
Geopolitical risk has been explicitly added as a factor behind fluctuations in electricity charges, and concerns about a stable energy supply are also described as part of the business environment. - 2026-05-12WorsenedResults
「主原料である鉄スクラップ価格や各エネルギー調達コストの急騰および高止まりにより営業損失900百万円、経常損失800百万円、親会社株主に帰属する当期純損失800百万円を見込んでおります。」
鉄スクラップ価格とエネルギー調達コストの急騰・高止まりを翌期業績予想の前提として明示している。 - FY2026-H1RestatedAnnual report
「During the interim consolidated accounting period, there were no material changes in the occurrence of major risks that management recognizes as potentially having a material impact on the financial position, operating results or cash flows of the consolidated companies, among the matters concerning the business and accounting conditions described in this interim securities report, or in the business and other risks described in the securities report for the previous fiscal year.」
The disclosure states that there have been no material changes in the key risks, including the risks of power supply constraints and fluctuations in electricity charges. - FY2025RestatedAnnual report
「Because the Group consumes large amounts of electricity, it is working to improve the energy efficiency of its electric arc furnaces through equipment modifications and the use of supplemental fuels. However, if electricity demand becomes tight, the Group may face constraints on its power supply. Electricity charges may also fluctuate substantially depending on trends in oil, liquefied natural gas, foreign exchange rates and other factors, potentially affecting the Group's operating results and financial condition.」
The disclosure continues to cover the risks of power supply constraints and fluctuations in electricity charges, as well as energy efficiency improvements through equipment modifications and supplemental fuels. - FY2025-H1MitigatedAnnual report
「Although power costs have been contained, prices for iron scrap, the main raw material, remained at elevated levels amid the business environment surrounding the Group.」
Power costs are described as having been contained during the interim consolidated accounting period, compared with the substantial increases and surges reported through the previous fiscal year. Meanwhile, risks of cost increases other than power costs remain. - FY2024WorsenedAnnual report
「In addition, manufacturing costs increased due to deterioration in certain unit costs and other factors.」
In addition to the substantial increase in power costs, deterioration in certain unit costs and other factors drove up manufacturing costs, and energy and manufacturing cost risks affected earnings. - FY2024-Q3WorsenedAnnual report
「Selling prices did not rise enough to fully pass on the increase in electricity rates, resulting in a challenging business environment.」
The increase in electricity costs was not fully passed on to selling prices, and the risk of higher electricity costs has affected the earnings environment. - FY2024-Q2RestatedAnnual report
「From a cost perspective, prices of iron scrap, the main raw material, remained lower than expected, but declining production volumes and rising electricity costs resulted in a challenging business environment.」
While iron scrap prices remained lower than expected, production volumes declined and electricity costs continued to rise, indicating that the risk of higher electricity rates persists. - FY2024-Q1WorsenedAnnual report
「From a manufacturing cost perspective, the sharp rise in various energy prices due to the prolonged Russia-Ukraine situation and the weaker yen led to a substantial increase in electricity costs, resulting in a challenging business environment.」
It states that electricity costs rose substantially, indicating that the risk of higher energy prices also emerged during the first quarter of the current fiscal year. - FY2023WorsenedAnnual report
「As of the date of submission of this report, energy prices, including electricity, have soared in the industries related to the Group amid the prolonged invasion of Ukraine by Russia, due to rising global demand for coal-fired power generation resulting from shortages of liquefied natural gas supplies.」
Energy prices, including electricity, have continued to soar against the backdrop of the prolonged invasion of Ukraine, shortages of liquefied natural gas supplies and rising demand for coal-fired power generation. - FY2023-Q3RestatedAnnual report
「Meanwhile, although various energy prices, including electricity and gas rates, continued to soar due to tighter supply and demand resulting from the Russia-Ukraine situation and the weaker yen, the Company worked to pass these higher energy costs on to the selling prices of its products.」
It states that energy prices, including electricity and gas rates, have continued to soar. Although it also notes efforts to pass the higher costs on to selling prices, it does not indicate any new change in the risk itself. - FY2023-Q2WorsenedAnnual report
「In addition, various energy costs, including electricity rates, and prices of materials such as ferroalloys rose substantially due to Russia's invasion of Ukraine and the weaker yen.」
It states that various energy costs, including electricity rates, and prices of materials such as ferroalloys rose substantially due to Russia's invasion of Ukraine and the weaker yen. The risks of higher electricity rates and material prices have emerged in the actual business environment. - FY2023-Q1WorsenedAnnual report
「In addition, various energy costs, including electricity rates, rose substantially, resulting in a challenging business environment.」
It states that various energy costs, including electricity rates, rose substantially in the actual business environment with regard to the risks of electricity supply constraints and higher electricity rates. - FY2020First statedAnnual report
「Because the Group consumes large amounts of electricity, it is working to improve the energy efficiency of its electric furnaces through equipment modifications and the use of supplementary fuels. However, electricity supply may be constrained if demand becomes tight. Electricity rates may also rise depending on trends in oil, liquefied natural gas, foreign exchange rates and other factors, which could affect the Group's business results and financial condition.」
Against the backdrop of high electricity consumption from the use of electric furnaces, it independently identified electricity supply constraints and higher electricity rates as major risks for the first time, citing equipment modifications and supplementary fuels as measures to improve efficiency.