Hedging Electricity Trading Price Volatility Through Bilateral Transactions

「Maintain neutral profitability unaffected by fuel-price fluctuations through a market-linked plan」

「The new plan hedging the risk of fluctuations in electricity trading prices proved effective, resulting in revenue of ¥269,663 million, down 11.5% from the previous consolidated fiscal year, and operating profit of ¥39,586 million, up 196.6%.」

「During the nine months ended 31 December, revenue declined due to the decrease in customer contracts for communications network services amid intensifying price competition among telecommunications operators and the impact of lower electricity trading prices in the electricity business. However, the new plan hedging electricity price volatility was successful. Revenue was ¥199,273 million, down 11.7% year on year, and operating profit was ¥29,680 million, up 178.1%.」

「During the six months ended 30 September, revenue declined due to the decrease in customer contracts for communications network services amid intensifying price competition among telecommunications operators and the impact of lower electricity trading prices in the electricity business. However, the new plan hedging electricity price volatility was successful. Revenue was ¥132,734 million, down 12.2% year on year, and operating profit was ¥21,608 million, up 270.2%.」

「During the nine-month period ended in the first quarter, revenue declined due to a decrease in customer contracts resulting from intensified price competition among telecommunications operators in the communications line services business and the decline in electricity trading prices in the electricity business, among other factors. However, a new plan designed to hedge the risk of fluctuations in electricity trading prices proved effective. Revenue was ¥62,400 million, down 12.1% year on year, while operating profit was ¥12,060 million, up 73.5% year on year.」

「Revenue was ¥643,984 million, up 12.4% from the previous consolidated fiscal year, and operating profit was ¥86,615 million, up 3.6%, due mainly to the success of a new plan that hedged the risk of fluctuations in electricity trading prices and an increase in recurring profit, which will provide a stable future revenue source, as customer contracts for the Company's own products increased.」

「During the first 3 quarters of the fiscal year, despite the effects of higher electricity trading prices in the electricity business and lower one-off profit, the new plan hedging the risk of fluctuations in electricity trading prices proved effective. Revenue was ¥156,755 million, up 44.5% year on year, and operating profit was ¥27,257 million, up 14.4%.」

「During the fiscal year, the number of subscriptions acquired in the network business declined as price competition among telecommunications operators intensified. However, in the electricity business, the company increased procurement through bilateral transactions to hedge the risk of fluctuations in electricity trading prices. As a result, revenue was ¥278,679 million, up 0.2% from the previous fiscal year, and operating profit was ¥35,786 million, up 56.8%.」

「In the electricity business, revenue was ¥198,456 million, up 0.0% year on year, and operating profit was ¥30,563 million, down 0.0% year on year, due in part to increased procurement through over-the-counter transactions at unit prices higher than market prices and hedging of the risk of fluctuations in electricity trading prices.」

「In the electricity business, we increased procurement through bilateral transactions at unit prices higher than market prices to hedge the risk of volatility in electricity trading prices.」