Message from Top Management
To Our Stockholders and Investors
President & Chief Executive Officer
Allow us to begin by extending our heartfelt gratitude to our stockholders and investors for your continued support of our business activities.
As president of this company, I am responsible for steering the company ship as we navigate through these current uncertain times with sudden increases in the price of fuel and market price of electricity, the effects on fuel procurement from the Ukraine conflict becoming prolonged, as well as the severe situation in energy supply and demand all across Japan, so I am putting all my efforts into confronting these various issues for the benefit of our local community and stakeholder.
The consolidated financial results of FY2022 showed a decrease in both revenues and profits.
In regards to sales, revenue decreased in comparison with the previous fiscal year mainly due to a change in the method of recording revenue related to feed-in tariffs for renewable energy according to the application of the "Accounting Standard for Revenue Recognition".
Ordinary income, and profit attributable to owners of the parent marked the largest loss in our history due to a massive loss from the time lag of the fuel cost adjustment system as a result of the sudden jump in fuel prices, as well as the increase in energy procurement costs due to a steep increase in the market price of electricity.
We have decided to pay out 15 yen per share for year-end dividend for a combined total of 40 yen for interim and year-end dividends based on the historic loss of consolidated financial results and losses in non-consolidated financial results for two consecutive terms.
Amidst this, Unit 2 of the Shimane Nuclear Power Station received permission from the Nuclear Regulation Authority to change its reactor installation license in September 2021 and we received a reply of prior consent from Shimane Prefecture in June 2022 regarding safety measures corresponding to the new regulatory requirements. We will continue to sincerely respond to reviews as we seek approval for our design and construction plans, and an operational safety programs, and make efforts to further improve safety.
In addition, we are constructing Unit 2 of Misumi Power Station, which provides outstanding economic performance, as a replacement for inefficient, aging thermal power plants. This plant started generating power under trial operations in March of this year in preparation for starting commercial operations in November. We are working toward starting its operation as a power source with excellent environmental performance by reducing CO2 emissions through mixed-fuel combustion with biomass.
We are aiming at increasing our profit level through maximal use of these large-scale power source projects as a means to improve our revenue base, and strengthen risk resistance against fluctuations in fuel and power prices, together with our continuing group-wide maximum efforts to reduce costs through optimizing operational efficiencies and similar efforts.
Our entire group is working to achieve our Group Corporate Vision, "ENERGIACHANGE 2030". Furthermore, in February 2021, we announced our Carbon Neutral 2050 initiatives and we are making group-wide efforts to realize a decarbonized society by introducing renewable energy to the maximum extent possible, activating nuclear power plants premised on the utmost priority being placed on ensuring safety, and developing new decarbonization technologies.
In April 2022, we announced our "Transition Plan for Thermal Power Generation". In working towards the decarbonization of thermal power generation, we are pursuing all possible options including biomass power generation, hydrogen and ammonia power generation, and IGFC+CCUS/carbon recycling taking into account facility renewal periods, technical development trends, and similar items, all premised on the implementation of S+3E. Our planned efforts towards hydrogen and ammonia power generation, based on our Sixth Strategic Energy Plan, consist of achieving 10% hydrogen mixed combustion in LNG thermal power and 20% ammonia mixed combustion in coal-fired power by the 2030s. We are working towards being ready for implementation by 2030 by accelerating studies in this regard and introducing mixed-fuel combustion facilities without delay after financial and technical issues are resolved.
In the accelerating global trend towards decarbonization, we are facing issues such as massive fluctuations in fuel prices due to the Ukraine conflict and how the responsibilities and roles should be taken in order to secure supply capacity while the power industry is being liberalized. Although our group is operating with a massively changing environment, we continue to aim our efforts at improving company value and achieving sustainable growth that will meet the expectations of our stockholders and investors.
We would like to ask our stockholders and investors for their continued understanding and support.