Profitability Assumptions, Natural Disaster and Regulatory Change Risks in the Renewable Energy Business
First written in FY2017. 1 of 3 entries say "Restated". Latest entry: FY2021-Q2.
Japan Asia Investment moved to the "Worse" side of this theme in 2020.
1 other company's latest entry also says "Materialised".
- FY2021-Q2MaterialisedAnnual report
「During the six months ended the second quarter, the Company recovered the investment principal from one project under construction because the project's profitability had declined.」
The decline in the profitability of a project under construction led to the recovery of the investment principal. - FY2019RestatedAnnual report
「If these assumptions fluctuate more than expected, or an unforeseen event such as a natural disaster, a major change or amendment to the feed-in tariff system or other transaction terms occurs, project profitability may differ materially from expectations depending on the nature of the event, potentially resulting in lower project revenue or impairment losses on project investment assets.」
The Company continues to disclose the risk of deteriorating profitability resulting from changes in assumptions regarding construction costs, power generation, natural disasters and the feed-in tariff system. - FY2017First statedAnnual report
「For renewable energy projects, the Company estimates total project costs, including construction costs through completion of the power plant, and long-term power generation after completion, based on certain assumptions when making investment decisions, and verifies project profitability. If these assumptions fluctuate more than expected, or an unforeseen event such as a natural disaster or a major change or amendment to the feed-in tariff system occurs, project profitability may differ materially from expectations, potentially resulting in lower revenue or impairment losses on investment assets.」
The Company identified risks related to the profitability assumptions for the renewable energy business, including construction costs, power generation, natural disasters and changes to the feed-in tariff system.