Earnings Fluctuations Driven by the Fuel Cost Adjustment System and Raw Material Inventories
First written in FY2017-Q1. 9 of 31 entries say "Mitigated", first in FY2018. Latest entry: 2026-07-30.
Hokkaido Gas moved to the "Worse" side of this theme in 2026, 6 years after the typical company in this theme (2020).
The whole theme swung hardest in 2026: 5 of 7 companies on the "Worse" side.
2 other companies' latest entry also says "Materialised".
- 2026-07-30MaterialisedEarnings
「Gas sales decreased 6.9% year on year to ¥22,503 million due to lower selling prices under the raw-material cost adjustment system and a decrease in sales volume.」
Lower selling prices under the raw-material cost adjustment system emerged in the results as a factor behind the decline in gas sales, together with lower sales volume. - FY2026-H1Gas revenue and earnings rise despite lower selling pricesAnnual report
「Revenue increased 6.1% year on year to ¥42,348 million, as higher sales volumes more than offset lower selling prices under the raw material cost adjustment system. Segment profit increased 41.6% year on year to ¥5,553 million, as higher sales volumes more than offset increased strategic expenses in areas including smart meters and DX.」
Although lower selling prices under the raw material cost adjustment system and higher strategic expenses weighed on results, increased sales volumes resulted in higher revenue and profit for the gas business. - FY2025-H1MaterialisedAnnual report
「Revenue decreased 9.0% year on year to ¥39,909 million, owing to lower selling prices under the raw material cost adjustment system.」
Lower selling prices under the raw material cost adjustment system resulted in a 9.0% year-on-year decline in gas revenue. The earnings volatility risk associated with the system was reflected in results for the interim period. - FY2024MitigatedAnnual report
「Although fluctuations in raw material prices are reflected in gas tariffs through the raw material cost adjustment system, the medium- to long-term impact on business earnings is limited. Similarly, in the power business, fluctuations in power procurement prices may affect business earnings. The Group is working to avoid procurement risks and reduce power procurement costs by using its own power sources and diversifying its power procurement suppliers.」
The reduction of the medium- to long-term impact through the raw material cost adjustment system, together with the use of own power sources and diversification of power procurement suppliers as countermeasures, continued to be disclosed. - FY2024-Q3MitigatedAnnual report
「Segment profit increased 28.2% year on year to ¥5,634 million, owing mainly to higher gas sales volumes, the results of raw material procurement initiatives and progress in operational reforms.」
Profit in the gas business increased, mainly due to the results of raw material procurement initiatives and progress in operational reforms. The effectiveness of measures to address earnings volatility related to raw materials was reflected in profit. - FY2024-Q2MitigatedAnnual report
「Segment profit increased 77.8% year on year to ¥5,899 million, owing mainly to higher gas sales volumes, the results of raw material procurement initiatives and progress in operational reforms.」
The results of raw material procurement initiatives and progress in operational reforms reflected the effectiveness of measures to address earnings volatility related to raw materials in profit. - FY2024-Q1MitigatedAnnual report
「Segment profit increased 63.4% from the first quarter of the previous fiscal year to ¥5,323 million, owing mainly to the results of initiatives in raw material procurement and progress in operational reforms.」
Gas segment profit increased 63.4% year on year, mainly due to the results of raw material procurement initiatives. The effect of measures to address earnings volatility related to raw materials was reflected in profit. - FY2023WorsenedAnnual report
「If raw material prices rise or fall due to fluctuations in crude oil prices, foreign exchange rates, market prices and other factors, they may affect operating performance and financial condition. Among the LNG purchase and sale contracts for city gas, those linked to crude oil prices may affect operating performance when crude oil prices fluctuate.」
The risk of raw material price fluctuations caused by changes in crude oil prices, foreign exchange rates and market prices continued to be disclosed. In actual results, higher LNG raw material prices increased inventories and weighed on operating cash flow, and the impact following removal of the cap under the raw material cost adjustment system was also disclosed. - FY2023-Q3RestatedAnnual report
「The change consisted of deleting the note concerning the raw material cost adjustment system stating, “A cap has been set on the adjustment amount.” In the power business, similarly, fluctuations in power procurement prices may affect operating performance. The Group is working to avoid procurement risks and reduce power procurement costs by using its own power sources and diversifying its power procurement suppliers.」
The deletion of the note on the cap under the raw material cost adjustment system, first included in the previous quarter, and the measures to address power procurement risks through the use of own power sources and supplier diversification continued to be disclosed. - FY2023-Q2Note on the cap under the raw material cost adjustment system removed, with power procurement measures specifiedAnnual report
「The change consisted of deleting the note concerning the raw material cost adjustment system stating, “A cap has been set on the adjustment amount.” In the power business, similarly, fluctuations in power procurement prices may affect operating performance. The Group is working to avoid procurement risks and reduce power procurement costs by using its own power sources and diversifying its power procurement suppliers.」
The note concerning the raw material cost adjustment system stating, “A cap has been set on the adjustment amount,” was deleted. The risk of fluctuations in power procurement prices and the measures taken through the use of the Group’s own power sources and supplier diversification were also specified. - FY2023-Q1Gas revenue and profit rose on higher selling prices and lower raw material costsAnnual report
「Revenue increased 39.7% year on year to ¥20,030 million, owing mainly to higher sales volumes and higher selling prices under the raw material cost adjustment system. Segment profit increased 19.7% from the first quarter of the previous fiscal year to ¥3,259 million, owing mainly to efforts to reduce gas raw material costs.」
Higher selling prices under the raw material cost adjustment system and increased sales volumes lifted gas revenue, while efforts to reduce raw material costs and other measures resulted in a 19.7% increase in segment profit. - FY2022Gas revenue and profit rose on higher sales volumes and selling pricesAnnual report
「Gas-wide revenue increased 22.3% year on year to ¥74,605 million, reflecting higher sales volumes for both city gas and LNG, as well as higher selling prices under the raw material cost adjustment system. Segment profit increased 69.0% year on year to ¥7,272 million, mainly due to higher gas sales volumes.」
Higher city gas and LNG sales volumes and higher selling prices under the raw material cost adjustment system resulted in a 22.3% increase in gas revenue and a 69.0% increase in segment profit. - FY2022-Q3Gas profit rose amid higher selling pricesAnnual report
「Revenue increased 7.0% year on year to ¥42,741 million, owing mainly to higher sales volumes and higher selling prices under the raw material cost adjustment system. Segment profit increased 36.9% year on year to ¥855 million, mainly due to higher gas sales volumes.」
Higher selling prices under the raw material cost adjustment system and increased sales volumes resulted in higher revenue and profit for the gas business. - FY2022-Q2Gas profit rose despite lower selling pricesAnnual report
「Revenue increased 0.6% year on year to ¥25,398 million, as higher sales volumes more than offset lower selling prices under the raw material cost adjustment system. Segment profit increased 60.3% year on year to ¥2,044 million, mainly due to higher gas sales volumes.」
Although lower selling prices under the raw material cost adjustment system continued, higher sales volumes resulted in increased revenue and profit for the gas business. - FY2022-Q1MitigatedAnnual report
「Segment profit increased 45.6% from the first quarter of the previous fiscal year to ¥2,722 million, owing mainly to higher gas sales volumes and efforts to reduce gas raw material costs.」
Efforts to reduce raw material costs, together with higher gas sales volumes, resulted in a 45.6% year-on-year increase in gas segment profit. The impact of measures to address earnings volatility related to raw material costs was reflected in profit. - FY2021-Q3MitigatedAnnual report
「Segment profit increased 247.5% year on year to ¥624 million, despite lower revenue, owing mainly to efforts to reduce gas raw material costs.」
Although lower gas selling prices reduced revenue, gas segment profit increased 247.5% year on year due to lower raw material costs. - FY2021-Q2MitigatedAnnual report
「Segment profit increased 210.3% year on year to ¥1,275 million, despite lower revenue, owing mainly to efforts to reduce gas raw material costs.」
Although lower selling prices under the raw material cost adjustment system reduced revenue, gas segment profit increased 210.3% year on year due to lower raw material costs. - FY2021-Q1The inventory impact offset the decline in selling pricesAnnual report
「Consolidated net sales for the cumulative first quarter decreased 6.8% year on year to ¥26,351 million, owing to lower city-gas sales volumes and lower selling prices under the raw-material cost adjustment system. Segment profit remained nearly unchanged from the cumulative first quarter of the previous fiscal year at ¥1,870 million, as the increase in gross margin resulting from the inventory impact of gas raw materials and other factors offset the decline in sales.」
Although lower selling prices under the raw material cost adjustment system reduced revenue, the gas segment profit was broadly in line with the same period of the previous year, due mainly to a higher gross margin reflecting the impact of raw material inventories. - FY2020RestatedAnnual report
「Fluctuations in crude oil prices affect our performance because they are reflected in gas selling prices and raw-material costs. As there is a time lag before changes are reflected in gas selling prices and raw-material costs, they may have a temporary impact on earnings, but the medium- to long-term impact is limited under the raw-material cost adjustment system.」
The continuing explanation specified the temporary impact caused by fluctuations in crude oil prices and the time lag before they are reflected in rates and raw-material costs, while stating that the medium- to long-term impact is limited. - FY2020-Q3WorsenedAnnual report
「Segment profit decreased 73.9% year on year to ¥179 million, mainly due to higher raw-material unit prices, periodic inspections of production facilities and higher costs related to the relocation to a new head office.」
Higher raw-material unit prices, together with periodic inspections of production facilities and other factors, actually contributed to the 73.9% year-on-year decrease in gas segment profit. - FY2020-Q2WorsenedAnnual report
「Segment profit decreased 64.6% year on year to ¥411 million, mainly due to higher raw-material unit prices and periodic inspections of production facilities.」
Higher raw-material unit prices actually affected performance, contributing to a 64.6% year-on-year decrease in gas segment profit. - FY2020-Q1RestatedAnnual report
「Sales increased 14.5% year on year to ¥15,888 million, owing to higher gas sales volumes and higher selling prices under the raw-material cost adjustment system.」
The impact of selling prices under the raw-material cost adjustment system continued, with higher selling prices contributing to the increase in gas revenue in the quarter. - FY2019MitigatedAnnual report
「However, because the raw-material cost adjustment system (Note), which reflects changes in raw-material costs in gas rates, is applied even when raw-material prices fluctuate, the medium- to long-term impact on earnings is limited.」
It was explained that the raw-material cost adjustment system limits the medium- to long-term impact of fluctuations in raw-material prices on earnings. - FY2019-Q3RestatedAnnual report
「Consolidated net sales for the cumulative third quarter increased 14.0% year on year to ¥77,503 million, as higher gas selling prices under the raw-material cost adjustment system and higher electricity revenue resulting from an increase in the number of customers more than offset the decrease in gas sales volumes.」
The impact of selling prices under the raw-material cost adjustment system continued, with higher selling prices contributing to the increase in sales by offsetting the decrease in gas sales volumes. - FY2019-Q2RestatedAnnual report
「Sales increased 10.2% year on year to ¥25,252 million, owing to higher gas sales volumes and higher selling prices under the raw-material cost adjustment system.」
The impact of selling prices under the raw-material cost adjustment system continued, with higher selling prices contributing to the increase in gas revenue in the quarter. - FY2019-Q1RestatedAnnual report
「Sales increased 10.2% year on year to ¥13,871 million, owing to higher gas sales volumes and higher selling prices under the raw-material cost adjustment system. Segment profit decreased 8.7% year on year to ¥1,371 million, mainly due to higher selling, general and administrative expenses and other factors.」
Although the impact of selling prices under the raw-material cost adjustment system continued, higher selling prices were a factor behind the increase in gas revenue in the quarter. No impact from raw-material inventories was reported. - FY2018MitigatedAnnual report
「With no inventory impact from raw materials that had affected earnings two years earlier, total gas revenue increased 10.4% year on year to ¥59,907 million, while segment profit increased 34.6% year on year to ¥3,449 million.」
Raw-material inventories had no impact on earnings during the fiscal year, and revenue and profit in the gas business increased. The impact of selling prices under the raw-material cost adjustment system continued to be reported. - FY2018-Q1RestatedAnnual report
「Meanwhile, sales decreased 0.3% year on year to ¥12,591 million, mainly due to the impact of the raw-material cost adjustment system on selling prices. Segment profit increased 43.9% year on year to ¥1,502 million, mainly due to lower raw-material unit prices and other factors.」
Although the impact of the raw-material cost adjustment system on selling prices continued, gas segment profit increased 43.9% year on year, mainly due to lower raw-material unit prices and other factors. - FY2017-Q3RestatedAnnual report
「Gas revenue decreased 20.5% year on year to ¥35,328 million, mainly due to lower selling prices under the raw-material cost adjustment system, while consolidated net sales decreased 10.0% year on year to ¥56,014 million. In addition to the decline in sales, the decrease in gross profit resulting from the inventory impact of gas raw materials and other factors resulted in an ordinary loss of ¥866 million and a quarterly net loss attributable to owners of the parent of ¥883 million.」
The effects of the raw-material cost adjustment system and raw-material inventories continued to affect gas revenue and earnings, resulting in an ordinary loss and a quarterly net loss attributable to owners of the parent. - FY2017-Q2WorsenedAnnual report
「Gas revenue decreased 24.6% year on year to ¥22,154 million, mainly due to lower selling prices under the raw-material cost adjustment system, while consolidated net sales decreased 13.8% year on year to ¥34,264 million. In addition to the decline in sales, the decrease in gross profit resulting from the inventory impact of gas raw materials and other factors resulted in an ordinary loss of ¥11 million and a quarterly net loss attributable to owners of the parent of ¥131 million.」
The effects of the raw-material cost adjustment system and raw-material inventories continued, resulting in lower gas revenue as well as an ordinary loss and a quarterly net loss attributable to owners of the parent. The effects were quantified and had actually resulted in losses. - FY2017-Q1First statedAnnual report
「Gas revenue decreased 24.4% year on year to ¥12,625 million, mainly due to lower selling prices under the raw-material cost adjustment system. Ordinary profit decreased 23.6% year on year to ¥1,177 million, mainly due to a lower gross margin resulting from the inventory impact of gas raw materials and other factors, while net profit attributable to owners of the parent decreased 24.7% year on year to ¥815 million.」
It was stated that lower selling prices under the raw-material cost adjustment system and the impact of raw-material inventories actually resulted in lower sales and earnings in the quarter.