Profit or loss volatility caused by volatility in the wholesale electricity market
First written in FY2019-Q1. 5 of 20 entries say "Worsened", first in FY2019-Q2. Latest entry: 2026-08-06.
Itochu Enex moved to the "Worse" side of this theme in 2018, 5 years before the typical company in this theme (2023).
The whole theme swung hardest in 2021: 4 of 15 companies on the "Worse" side.
2 other companies' latest entry also says "Worsened".
- FY2026-H1RestatedAnnual report
「Profit from operating activities was ¥4.066 billion, down 2.4% year on year, and interim profit attributable to owners of the Company was ¥2.173 billion, down 16.3%. This was mainly because the electricity sales business remained solid amid stable electricity market conditions, but the prior-year one-time gain related to a solar power plant was not repeated.」
The disclosure continues to state that electricity market conditions were stable and the electricity sales business remained solid, while business profit declined due to the absence of the prior-year one-time gain. - FY2025-H1MitigatedAnnual report
「This was mainly because profitability improved as electricity market conditions stabilized, despite the absence of the gain recognized in the year-earlier period from the sale of a large-scale solar power plant. The impact on profit from operating activities was ¥5.019 billion.」
The disclosure states that profitability in electricity retailing improved as electricity market conditions stabilized, indicating an improvement in the response to margin compression caused by previously volatile market conditions. - FY2024MitigatedAnnual report
「Profit from operating activities was ¥4.631 billion, up 114.2% from the previous fiscal year, and profit for the year attributable to owners of the Company was ¥2.25 billion, up 119.3%. This was mainly due to a gain on the sale of a large-scale solar power plant, which had an impact of ¥5.019 billion on profit from operating activities, despite weaker earnings due to sluggish electricity market conditions and lower electricity consumption resulting from the mild winter and heightened conservation awareness.」
Although weaker earnings due to sluggish electricity market conditions remained, profits in the electricity and utilities business improved due to revised sales prices and the gain on the sale of the large-scale solar power plant. - FY2024-Q3RestatedAnnual report
「Profit from operating activities was ¥7.403 billion, compared with profit of ¥1.134 billion in the year-earlier period, and quarterly profit attributable to owners of the Company was ¥4.367 billion, compared with profit of ¥418 million in the year-earlier period. This was mainly due to improvements in the electricity retail business following revisions to sales prices and a one-time gain from the sale of a large-scale solar power plant. The impact on profit from operating activities was ¥5.019 billion.」
The disclosure reconfirms that profits in the electricity and utilities business improved due to improvements in the electricity retail business following revised sales prices and the gain on the sale of the large-scale solar power plant. - FY2024-Q2MitigatedAnnual report
「Profit from operating activities was ¥7.352 billion, compared with profit of ¥807 million in the year-earlier period, and quarterly profit attributable to owners of the Company was ¥4.435 billion, compared with profit of ¥323 million in the year-earlier period. This was mainly due to the contribution from the electricity retail business following revisions to sales prices and a one-time gain from the sale of a large-scale solar power plant. The impact on profit from operating activities was ¥5.019 billion.」
The disclosure states that, compared with the previous situation in which retail electricity margins remained compressed due to soaring resource prices and other factors, profits in the electricity and utilities business improved as a result of the contribution from revised sales prices. - FY2023MaterialisedAnnual report
「Profit from operating activities was ¥2.162 billion, down 65.0% from the previous fiscal year, and profit for the year attributable to owners of the Company was ¥1.026 billion, down 70.5%. This was mainly due to narrower retail electricity margins resulting from higher procurement prices caused by soaring resource prices, as well as the absence of the valuation gain recognized in the previous fiscal year when a large-scale solar power plant was consolidated as a subsidiary.」
Higher procurement prices resulting from soaring resource prices and narrower retail electricity margins translated into a 65.0% decline in operating profit and a 70.5% decline in profit for the year in the electricity and utilities business. - FY2023-Q3WorsenedAnnual report
「Profit from operating activities was ¥1.134 billion, down 84.7% year on year, and quarterly profit attributable to owners of the Company was ¥418 million, down 90.9%. This was mainly due to narrower retail electricity margins caused by higher procurement prices resulting from soaring resource prices, as well as the absence of the valuation gain recognized in the previous year when a large-scale solar power plant was consolidated as a subsidiary.」
Higher procurement prices resulting from soaring resource prices and narrower retail electricity margins translated into an 84.7% decline in operating profit and a 90.9% decline in quarterly profit in the electricity and utilities business. - FY2023-Q2MaterialisedAnnual report
「Profit from operating activities was ¥807 million, down 74.0% year on year, and quarterly profit attributable to owners of the Company was ¥323 million, down 81.4%. This was mainly due to a contraction in retail electricity margins caused by higher procurement prices resulting from soaring resource prices.」
Higher procurement prices resulting from soaring resource prices and narrower retail electricity margins translated into a 74.0% decline in operating profit and an 81.4% decline in quarterly profit in the electricity and utilities business. - FY2022MaterialisedAnnual report
「Soaring wholesale electricity market prices and resource prices pushed up procurement prices in some parts of the Group's electricity business.」
Higher procurement prices resulting from soaring wholesale electricity market and resource prices continued to occur in practice and became a factor compressing retail electricity margins. The Group also indicated that it would respond through alliances with major electric utilities and the use of derivatives. - FY2022-Q3MaterialisedAnnual report
「This was mainly because higher procurement prices resulting from soaring resource prices compressed retail electricity margins, while gains on the consolidation of a large-scale solar power plant as a subsidiary and other items contributed to earnings. The impact on quarterly profit attributable to owners of the Company was ¥2.935 billion.」
The disclosure states that higher procurement prices resulting from soaring resource prices emerged in actual results as compressed retail electricity margins. - FY2022-Q1MitigatedAnnual report
「Profit from operating activities was ¥1.58 billion, up 7.2% year on year. This was mainly due to improved wholesale margins in the electricity sales business.」
Although wholesale electricity market volatility and price competition had previously weighed on earnings, improved wholesale margins became a factor behind higher earnings in the electricity business during the current quarter. - FY2021MaterialisedAnnual report
「The surge in electricity spot-market prices from the end of December 2020 through January 2021 also pushed up procurement prices in some parts of the Group's electricity business.」
Regarding the previously identified risks of wholesale electricity market volatility and price competition, the spot-market surge from the end of December 2020 through January 2021 and the resulting increase in procurement prices actually occurred. The Group also states that it will expand alliances with major electric utilities and broaden the scope of its use of futures and derivatives. - FY2020-Q3MitigatedAnnual report
「This was due to higher margins in the electricity business resulting from greater stability in the wholesale electricity market.」
While volatility in the wholesale market had been cited as a factor behind the deterioration in earnings through the previous quarter, market stability and higher margins became factors behind higher earnings in the current quarter. - FY2020-Q2Improvement in the earnings impact of the electricity businessAnnual report
「Low-voltage sales volume, mainly to households, increased, but retail electricity sales volume fell below the year-earlier level due to a decline in large high-voltage contracts with corporate customers. Earnings exceeded the year-earlier level as margins improved.」
Through the previous quarter, the disclosures cited market-price fluctuations and price competition as factors weighing on earnings. In the current quarter, retail electricity sales volume declined, but earnings exceeded the year-earlier level due to improved margins. - FY2019-Q3WorsenedAnnual report
「Profit and loss fell substantially below the previous year's level due to soaring wholesale market prices in the Hokkaido area and intensifying price competition.」
The disclosure states that, in addition to soaring wholesale-market prices, intensifying price competition significantly reduced earnings from electricity sales. - FY2019-Q2WorsenedAnnual report
「Retail electricity sales volumes exceeded those of the same period of the previous year, but profit and loss fell below the previous year's level due to sharp fluctuations in wholesale market prices and intensifying price competition.」
In addition to wholesale-market volatility, intensifying price competition was explicitly identified as a factor behind the deterioration in earnings, and the impact of these risks has continued. - FY2019-Q1First statedAnnual report
「Retail electricity sales volume exceeded the year-earlier period, but earnings were below the year-earlier level due to extreme volatility in the wholesale market.」
The disclosure states that extreme volatility in the wholesale market emerged as a factor behind the deterioration in earnings in the electricity sales business.