Material uncertainty related to going concern due to significant losses and deteriorating cash flow
First written in FY2019-Q2. 5 of 8 entries say "Mitigated", first in FY2019. Latest entry: FY2025.
The whole theme swung hardest in 2020: 30 of 71 companies on the "Worse" side.
38 other companies' latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「Based on a comprehensive assessment of these circumstances, the company has determined that, as of the end of the consolidated fiscal year, no events or circumstances existed that raised substantial doubt about the going concern assumption.」
Even after the withdrawal of the GPX partner and the recognition of losses, the company indicated that no material uncertainty existed, based on the revision of the Train 1 contract, financing and cooperation with financial institutions, operating profit of ¥24.421 billion, net income attributable to owners of the parent of ¥26.987 billion, and the elimination of the standalone negative net worth. - FY2025-H1MitigatedAnnual report
「The company has sufficient funds as of the end of the interim consolidated accounting period, so no material impact on future liquidity is expected and no serious concerns regarding the continuity of business activities have been identified. In addition, the company has maintained close communication and close cooperation with its financial institutions, including entering into a loan agreement with MUFG Bank on 24 July 2024 and drawing down the loan on 31 July. Accordingly, it has determined that no material uncertainty regarding the going concern assumption exists.」
Although discussions on revising the EPC contract with the GPX partner are continuing and the events raising substantial doubt have not been resolved, the company has determined that no material uncertainty exists because it has sufficient funds, has executed bank borrowings and has no serious concerns regarding liquidity. - FY2024WorsenedAnnual report
「The company recognizes that events or circumstances have arisen that raise substantial doubt about the going concern assumption.」
The company reported an operating loss of ¥15.06 billion, an ordinary loss of ¥5.461 billion, a net loss attributable to owners of the parent of ¥15.831 billion, and a negative standalone net worth following the bankruptcy filing of a Golden Pass LNG partner and the recognition of related costs. However, it determined that no material uncertainty regarding the going concern assumption exists because there are no serious concerns regarding liquidity. - FY2020-Q2MitigatedAnnual report
「The execution on 1 July 2019 of a ¥70 billion private placement, with Mitsubishi Corporation as the allottee, eliminated the negative net worth. In addition, the execution of ¥20 billion in financing from MUFG Bank and a ¥90 billion loan agreement with an affiliate of Mitsubishi Corporation avoided the risk of a cash shortfall. Accordingly, the “(k) Significant Events, etc. That Raise Substantial Doubt About the Going Concern Assumption” stated in the securities report for the previous consolidated fiscal year has ceased to apply.」
The company states that the private placement, the execution of bank borrowings and the ¥90 billion loan agreement with an affiliate of Mitsubishi Corporation eliminated or avoided the negative net worth and the risk of a cash shortfall, and that the significant events, etc. relating to the going concern assumption had ceased to apply. - FY2020-Q1MitigatedAnnual report
「As a result, as described in “Part 4. Financial Information, 1. Quarterly Consolidated Financial Statements, (2) Quarterly Consolidated Statements of Income and Comprehensive Income, Notes (Significant Subsequent Events),” the company reached agreement on and executed financing through a private placement and new borrowings. This eliminated the negative net worth and avoided the risk of a cash shortfall. Accordingly, it has determined that, as of the filing date, no material uncertainty regarding the going concern assumption exists.」
In addition to reaching agreement on a private placement and new borrowings, the company executed the transactions, eliminating the negative net worth and the risk of a cash shortfall, and reconfirmed its determination that no material uncertainty regarding the going concern assumption exists. - FY2019MitigatedAnnual report
「The company expects the execution of this financing to eliminate the negative net worth and avoid the risk of a cash shortfall. Accordingly, it has determined that, as of the filing date, no material uncertainty regarding the going concern assumption exists.」
After substantial losses, a negative net worth and the need for financing arose, the company indicated that, following an agreement on a private placement and new borrowings, it determined that no material uncertainty regarding the going concern assumption existed as of the filing date. - FY2019-Q3WorsenedAnnual report
「Cash flow is expected to deteriorate going forward due to the increase in construction costs, and new financing is expected to be required early in the following consolidated fiscal year. In light of these circumstances, the company recognizes that events or conditions exist that raise substantial doubt about its ability to continue as a going concern.」
In light of the larger losses, the company states that cash flow has deteriorated and that it expects to raise new funds early in the following consolidated fiscal year, meaning that a material uncertainty regarding the going concern assumption remains. - FY2019-Q2First statedAnnual report
「Cash flow is expected to deteriorate going forward due to the increase in construction costs, and new financing is expected to be required during the consolidated fiscal year. In light of these circumstances, the company recognizes that events or conditions exist that raise substantial doubt about its ability to continue as a going concern.」
Following substantial losses and deteriorating cash flow caused by rising costs in the Cameron LNG Project, the company newly recognizes the prospect of obtaining additional financing during the fiscal year and material uncertainty regarding going concern.