Resolution to terminate electricity supply and purchase agreements with certain procurement counterparties in the electricity retail business and recognition of a ¥1.5 billion extraordinary loss for the contract termination settlement payment
KEIYO GAS CO.,LTD. (filing company)
Electricity retail business; electricity supply and purchase agreements with certain procurement counterparties
¥1.5 billion contract termination settlement payment (extraordinary loss)
Fourth quarter of the fiscal year ending December 2026
The consolidated full-year earnings forecast for the fiscal year ending December 2026 has been revised. The revised forecast is revenue of ¥122,800 million, operating profit of ¥2,700 million, ordinary profit of ¥3,800 million, net income attributable to owners of the parent of ¥1,800 million, and earnings per share of ¥55.98.
The company expects to recognize the ¥1.5 billion contract termination settlement payment in the fourth quarter of the fiscal year ending December 2026.
| Item | Details |
|---|---|
| Event name | Resolution to terminate electricity supply and purchase agreements with certain procurement counterparties in the electricity retail business and recognition of a ¥1.5 billion extraordinary loss for the contract termination settlement payment |
| Date of occurrence | 30 October 2026 (the date on which the Board of Directors resolved to terminate the agreements) |
| Subject Entity | KEIYO GAS CO.,LTD. (filing company) |
| Target Locations / Products | Electricity retail business; electricity supply and purchase agreements with certain procurement counterparties |
| Amount of Impact on Business Performance | ¥1.5 billion contract termination settlement payment (extraordinary loss) |
| Accounting period in which recognized | Fourth quarter of the fiscal year ending December 2026 |
| Impact on Earnings Forecast | The consolidated full-year earnings forecast for the fiscal year ending December 2026 has been revised. The revised forecast is revenue of ¥122,800 million, operating profit of ¥2,700 million, ordinary profit of ¥3,800 million, net income attributable to owners of the parent of ¥1,800 million, and earnings per share of ¥55.98. |
| Outlook | The company expects to recognize the ¥1.5 billion contract termination settlement payment in the fourth quarter of the fiscal year ending December 2026. |
Items this document does not state (17)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.This is because the contract termination will result in a contract termination settlement payment. Regarding the earnings forecast revision, revenue is expected to increase as gas selling prices rise under the raw material cost adjustment system in response to higher raw material prices, while operating profit and ordinary profit are expected to decrease because the rise in gas raw material prices precedes the corresponding increase in selling prices, creating a time lag. Net income attributable to owners of the parent is expected to decrease due to the recognition of the extraordinary loss.