Mitigating Price Volatility Risk in Electricity Trading
First written in FY2019-Q2. 10 of 22 entries say "Advanced", first in FY2020-Q2. Latest entry: 2026-07-31.
The whole theme swung hardest in 2022: 2 of 9 companies on the "Worse" side.
0 other companies' latest entry also says "Worsened".
- 2026-07-31WorsenedEarnings
「For the first quarter of the current consolidated fiscal year, the net gain or loss from electricity futures transactions recorded in the previous consolidated fiscal year even though the related physical forward electricity transactions were delivered in the current first quarter, and from electricity futures transactions recorded in the current first quarter even though the related physical forward electricity transactions will be delivered after the end of the current first quarter, was a net loss of ¥729 million. This was a factor that effectively reduced earnings for the current first quarter.」
The timing difference in recognizing gains and losses on hedging transactions effectively reduced current-quarter earnings by ¥729 million. - FY2026AdvancedAnnual report
「For the consolidated fiscal year, the net gain or loss from electricity futures transactions recorded in the previous fiscal year even though the related physical forward electricity transactions were delivered in the current fiscal year, and from electricity futures transactions recorded in the current fiscal year even though the related physical forward electricity transactions will be delivered after the end of the current fiscal year, was a net gain of ¥2,473 million. This was a factor that effectively boosted earnings for the current fiscal year.」
The company explained that it continued hedging operations combining physical forward power transactions and power futures transactions, and that a ¥2,473 million factor boosting earnings arose during the period due to differences in the timing of profit and loss recognition. - FY2026-H1RestatedAnnual report
「To meet each customer's power procurement and risk-hedging needs, we engage in physical forward power transactions, power swaps, which are derivative transactions, and power futures transactions. In light of the growing importance of risk management accompanying the increase and diversification of power trading, the Group is also strengthening its risk management framework and executing transactions while appropriately limiting risk amid highly volatile markets.」
We continue our policy of combining physical forward power, swap and futures transactions with our risk management framework. - FY2025WorsenedAnnual report
「Operating revenue increased significantly as we increased trading volume to improve liquidity in power trading. However, profit declined due to higher trading fees and lower profitability per transaction, and fluctuations in factors increasing or reducing earnings from power hedging transactions resulted in a segment loss.」
Although we continued physical forward, swap and futures transactions and risk management, segment loss was ¥101 million due to higher fees accompanying the increase in trading volume, lower profitability per transaction, and differences in the timing of profit and loss recognition for hedging transactions. - FY2025-H1AdvancedAnnual report
「During the interim consolidated accounting period under review, as wholesale power prices rose, trading volume increased from the same period of the previous year in response to growing hedging needs among retail electricity providers, among other factors. Operating revenue and segment profit both increased year on year.」
As we combined physical forward power transactions, swaps and futures transactions, trading volume increased in response to growing hedging demand, and segment profit rose 71.7% year on year to ¥240 million. - FY2024AdvancedAnnual report
「During the fiscal year under review, wholesale power prices remained lower than in the previous fiscal year, and the decline in average unit prices per trading volume had a significant impact. Although operating revenue and operating expenses both decreased year on year, segment profit increased as trading volume rose year on year in response to growing hedging needs, among other factors.」
By combining physical forward power, swap and futures transactions with risk management, we increased trading volume even in an environment of low wholesale power prices and secured segment profit of ¥382 million. - FY2024-Q2AdvancedAnnual report
「In response to the growing importance of risk management accompanying the increase and diversification of power trading, the Group is also strengthening its risk management framework and executing transactions while appropriately limiting risk amid highly volatile markets.」
The company continued trading in a highly volatile market by combining physical forward power transactions, swaps and futures transactions with its risk management framework. Segment results for the power trading-related business changed from a loss of ¥229 million in the same period of the previous year to a profit of ¥139 million. - FY2023-Q3WorsenedAnnual report
「The resulting net settlement loss of ¥3 million and the net fair value loss of ¥134 million on power futures transactions whose delivery months fall after the end of the third quarter consolidated accounting period are not recognized in the same accounting period as physical forward power transactions delivered after the end of the third quarter consolidated accounting period. As a result, they have reduced operating revenue for the cumulative third quarter and increased the segment loss of the power trading-related business.」
The ¥3 million settlement loss and ¥134 million fair value loss on power futures transactions were recognized in a different accounting period from the physical forward transactions, reducing cumulative third-quarter results for the power trading-related business. Segment results changed from a profit of ¥229 million in the same period of the previous year to a loss of ¥471 million. - FY2023-Q2The power trading-related business moved from profit to loss.Annual report
「In power trading, we engage in physical forward power transactions, power swaps, which are derivative transactions, and power futures transactions to meet customers' power procurement and hedging needs. In view of the growing importance of risk management as power trading increases and diversifies, the Group is also strengthening its risk management framework and executing transactions while appropriately limiting risk amid highly volatile markets.」
Although we continued hedging and risk management through forward, swap and futures transactions, segment results changed from a profit of ¥135 million in the same period of the previous year to a loss of ¥229 million, due to lower trading volume and differences in accounting periods, among other factors. - FY2023-Q1AdvancedAnnual report
「Amid highly volatile markets, we secured profits while appropriately limiting risk. As a result, operating revenue from the power trading-related business for the cumulative first quarter of the fiscal year under review was ¥1,743 million, an increase of ¥242 million, or 16.1%, from the same period of the previous year, while segment profit was ¥100 million, an increase of ¥27 million, or 37.0%.」
Under a policy of combining physical forward power transactions, power swaps and power futures transactions, we secured segment profit of ¥100 million while limiting risk even in an environment of significant price volatility. - FY2022AdvancedAnnual report
「Power trading needs remained firm during the fiscal year under review. In addition to the spring and summer, trading volume increased in power trading since autumn, following the surge in fuel prices, and we secured profits while limiting risk.」
We increased power trading volume even amid surging fuel prices and secured full-year segment profit of ¥875 million while limiting risk. - FY2022-Q3AdvancedAnnual report
「We have also generated profits while limiting risk in power trading since autumn, following the surge in fuel prices.」
It states that, under a policy of combining physical forward power transactions, power swaps and power futures transactions, the company generated profits while limiting risk even amid surging fuel prices. - FY2022-Q2RestatedAnnual report
「In power trading, we engage in physical forward power transactions, power swaps, which are derivative transactions, and power futures transactions to meet customers' power procurement and hedging needs.」
We continue to pursue a policy of combining physical forward power transactions, power swaps and power futures transactions to meet customers' procurement and hedging needs and address price volatility risk. - FY2022-Q1RestatedAnnual report
「For power trading, the company engages in physical power forward transactions, power swap transactions, a type of derivative, and power futures transactions after considering customers' electricity procurement needs, price volatility risk, and supply-demand conditions in the power market.」
The company continues its policy of addressing price volatility risk by combining physical power forward, power swap, and power futures transactions. - FY2021-Q1RestatedAnnual report
「For power trading, the company engages in power forward transactions after considering customers' electricity procurement needs, price volatility risk, and supply-demand conditions in the power market, while also engaging in power swap transactions and power futures transactions, both derivatives, to mitigate price volatility risk in power trading.」
The company continues its policy of mitigating price volatility risk by combining power forward, power swap, and power futures transactions. - FY2020-Q3AdvancedAnnual report
「For power trading, the company engages in power forward transactions after considering customers' electricity procurement needs, price volatility risk, and supply-demand conditions in the power market, while also engaging in power swap transactions, a type of derivative, and power futures transactions newly listed on TOCOM in September 2019 to mitigate price volatility risk in power trading.」
In addition to its existing power forward and power swap transactions, the company began engaging in power futures transactions newly listed on TOCOM in September 2019, expanding its means of addressing price volatility risk. - FY2020-Q2AdvancedAnnual report
「For power trading, the company engages in power forward transactions after considering customers' electricity procurement needs, price volatility risk, and supply-demand conditions in the power market, while also engaging in power swap transactions, a type of derivative, and power futures transactions newly listed on TOCOM in September 2019 to mitigate price volatility risk in power trading.」
In addition to its existing power forward and power swap transactions, the company began engaging in power futures transactions listed in September 2019, expanding its means of addressing price volatility risk. - FY2019RestatedAnnual report
「For power trading, the company engages in power forward transactions after considering customers' electricity procurement needs, price volatility risk, and supply-demand conditions in the power market, while also engaging in power swap transactions, a type of derivative, as necessary to mitigate price volatility risk in power trading.」
The company continues its policy of mitigating price volatility risk by combining power forward transactions and power swap transactions. - FY2019-Q3RestatedAnnual report
「For power trading, the company engages in power forward transactions after considering customers' electricity procurement needs, price volatility risk, and supply-demand conditions in the power market, while also engaging in power swap transactions, a type of derivative, as necessary to mitigate price volatility risk in power trading as much as possible.」
The company continues its policy of mitigating price volatility risk by using power swap transactions in addition to power forward transactions. - FY2019-Q2First statedAnnual report
「In this business, the company engages in power forward transactions after considering customers' electricity procurement needs, price volatility risk, and supply-demand conditions in the power market. In addition, it engages in power swap transactions, a type of derivative, to mitigate price volatility risk in power trading as much as possible.」
The company first specifically described its use of power swap transactions, in addition to power forward transactions, as a means of mitigating price volatility risk.