President and CEO
First of all, allow us to express our sincere gratitude for your continued support of our business activities.
With regard to the consolidated financial result for fiscal year 2022-2Q, revenues and revenues decreased compared to the same period of the previous fiscal year.
Operating income decreased mainly due to a change in the method of recording income related to feed-in tariffs for renewable energies in accordance with the application of the “Accounting standard for the recognition of income”.
Ordinary income decreased mainly due to the lag of the fuel cost adjustment system due to the increase in fuel prices.
As a result, profit attributable to owners of the parent company decreased compared to the same period last year.
Regarding the financial result forecast for fiscal year 2022, we expect a significant deterioration in revenues and expenses due to an increase in the loss on the offset of the fuel cost adjustment system due to the increase fuel prices and an increase in the cost of supply. electricity to secure supply capacity in winter.
Regarding the interim dividends for fiscal year 2022, we have decided to pay 25 yen per share on the basis of our basic policy of paying stable dividends. On the other hand, we have revised the year-end dividend forecast for fiscal 2022 from 25 yen per share to undecided, as there is a need to assess the impact of uncertainty on the market situation. supply and demand for electricity in winter and the evolution of fuel prices. on the current year revenue on top of that, the year-end forecast of financial results has deteriorated significantly.
We continue to put maximum efforts across the group to reduce costs and improve our bottom line as soon as possible.
Amid a radically changing business environment, including intensifying competition for a retail electricity market and the global trend towards decarbonization, we are working to realize our corporate vision of the group, “ENERGIACHANGE 2030”. In addition, in February 2021, we announced our Carbon Neutral 2050 initiatives and we are making group-wide efforts to achieve a carbon-free society by introducing renewable energies as much as possible, by activating nuclear power plants on the premise that the absolute priority is to ensure safety and develop new decarbonisation technologies.
In September 2021, Unit 2 of the Shimane nuclear power plant received authorization from the Nuclear Regulatory Authority to modify its reactor installation license. We will continue to respond sincerely to reviews as we seek approval of our design and construction plans and an operational safety program, and we will make efforts to further improve safety.
In addition, we are building the Coal Fired Unit 2 of Misumi Power Plant as a replacement for inefficient and aging thermal power plants using the best power generation system available. We are working on starting its operation in 2023 as a power plant with excellent environmental performance by reducing CO emissions.2 emissions from mixed combustion with biomass.
Our business environment is changing at breakneck speed, including not only decarbonization efforts, but also the social and economic changes brought about by COVID-19 as well as digital transformation. However, we aim to quickly notice the needs to achieve a sustainable society and then respond to those needs and in so doing work towards the sustainable growth of the enterprise value of our group.
We would like to ask our shareholders and investors for their continued understanding and support.