Technical malfunction and contract termination risks associated with biomass power generation equipment
First written in FY2017. 5 of 13 entries say "Restated". Latest entry: FY2022.
No other company in this theme has enough history to compare yet.
- FY2022MitigatedAnnual report
「During the current consolidated fiscal year, we were able to substantially complete the restructuring of unprofitable businesses in which we had invested in the past without producing results, an initiative pursued since the previous consolidated fiscal year. These businesses included the renewable energy-related business operated by ZEエナジー, the overseas financial instruments trading business operated by PJB, and overseas investment projects of Traders Investment, among others.」
The transfer of all shares in ZEエナジー and other developments reduced the group's business exposure to technical defects in biomass power generation facilities and contract termination affecting the group directly. - FY2022-Q3RestatedAnnual report
「During the consolidated cumulative third quarter period under review, there were no material additions or changes to the business and other risks described in the annual securities report for the previous fiscal year.」
The company stated that there were no material additions or changes regarding the technical defects in biomass power generation equipment and the risk of contract termination. - FY2021-Q3RestatedAnnual report
「During the consolidated cumulative third quarter period under review, there were no material additions or changes to the business and other risks described in the annual securities report for the previous fiscal year.」
The company stated that there were no material additions or changes regarding the technical defects in biomass power generation equipment and the risk of contract termination. - FY2021-Q1RestatedAnnual report
「The delivered wood biomass gasification power generation equipment had not reached profitable operation and was still undergoing improvement work.」
Even after ZEエナジー was excluded from the scope of consolidation, the company indicated that the wood biomass gasification power generation equipment had not reached profitable operation and remained under improvement. The technical and profitability-related issues themselves therefore remain. - FY2020-Q3RestatedAnnual report
「The company continued improvement work on the wood biomass gasification power generation equipment at the Mogamimachi Satoyama Power Plant to enable power generation at a level sufficient to ensure profitability, but did not achieve the target power generation volume.」
Improvement work is continuing, but technical and profitability-related issues remain because the target power generation volume has not been achieved. - FY2020-Q2WorsenedAnnual report
「The company continued improvement work on the wood biomass gasification power generation equipment at the Mogamimachi Satoyama Power Plant to enable power generation at a level sufficient to ensure profitability, but did not achieve the target power generation volume.」
Although additional improvement work is continuing, the target power generation volume has not been achieved, and technical and profitability-related issues with the wood biomass power generation equipment remain unresolved. - FY2020-Q1RestatedAnnual report
「Because electricity sales from the wood biomass gasification power generation equipment at the Mogamachi Satoyama Power Plant had still not reached a level sufficient to ensure profitability, the company has continued to adjust operations and carry out improvement work with the aim of achieving stable operation.」
At the Mogamimachi Satoyama Power Plant, electricity sales have still not reached a level sufficient to ensure profitability, and operational adjustments and improvement work toward stable operation are continuing. - FY2019-Q2WorsenedAnnual report
「The Mogamimachi Satoyama Power Plant began selling electricity to the utility company in July 2017, but has not yet reached the point of continuous operation on a profitable basis. The company is working through the issues that must be resolved to achieve continuous operation, one by one.」
The Mogamimachi Satoyama Power Plant has not achieved continuous operation on a profitable basis since beginning electricity sales, and unresolved technical and fuel-related issues remain. - FY2019-Q1WorsenedAnnual report
「However, ZEエナジー has not completed the additional modification work on the wood biomass gasification power generation equipment at the Mogamimachi Satoyama Power Plant and has been unable to begin construction of the next power generation facility. It had also planned to complete additional modification work on the same type of equipment at the Kabuchan-mura Mori Power Plant and transition to a maintenance contract, but has not yet concluded the maintenance contract.」
Additional modification work at the Mogamimachi Satoyama Power Plant remains incomplete, preventing work from starting on the next project, and no maintenance contract has been concluded for the Kabuchan-mura Mori Power Plant. Unresolved matters related to technical defects and contract termination risk remain. - FY2018-Q3MaterialisedAnnual report
「Extraordinary losses amounted to ¥653.282 million, up ¥650.071 million year on year, consisting of ¥641.038 million in contract cancellation losses related to the cancellation of the contract to manufacture a woody biomass gasification power generation unit for the Azumino Biomass Energy Center, ¥7.269 million in provision for contract cancellation losses for removal costs and other expenses for the unit expected to arise from the fourth quarter onward, and other items.」
Losses associated with termination of the Azumino Biomass Energy Center contract were also recognized in the cumulative third-quarter period, and provisions for removal costs and other expenses were added. - FY2018-Q2MaterialisedAnnual report
「Cash flow from operating activities for the first six months of the consolidated fiscal year was a net outflow of ¥1,477.651 million. This was mainly due to factors including a contract termination loss of ¥627.895 million, an expense of ¥14.029 million for the provision for contract termination losses, and a payment of ¥1,243.624 million for contract termination losses.」
The company disclosed that, following termination of the Azumino Biomass Energy Center contract, a loss was recognized and a refund payment of ¥1,243.624 million was actually made. - FY2018-Q1MaterialisedAnnual report
「For the Azumino Biomass Energy Center, the company received notice of contract termination from the ordering party, AIR WATER INC., on 31 July and is currently removing the wood biomass gasification power generation equipment at the Azumino Biomass Energy Center for reuse in the next project.」
An event previously described as the risk of contract termination if the equipment was completed but failed inspection actually occurred when notice of contract termination for the Azumino Biomass Energy Center was received. - FY2017First statedAnnual report
「If the target is not achieved, the sale and purchase agreement with AIR WATER INC. will be terminated, ZEエナジー will be required to return the full ¥1,146.814 million in consideration already received to the company, and it will be liable for costs associated with termination of the agreement.」
The company specifically disclosed the risks that, if the power generation equipment is not completed or fails inspection, the agreement may be terminated, the ¥1,146.814 million in consideration already received may have to be returned, and related costs may be incurred.