Impact of the Fire at Sanix Energy's Tomakomai Power Plant on the Company's Business Performance.Fukuoka Fukuoka (f  k `ōkä), city (1990 pop. 1,237,062), capital of Fukuoka prefecture, N Kyushu, Japan, on Hakata Bay. , Japan, Oct 28, 2005 - (JCN JCN Japan Corporate NewsJCN Journal of Cognitive Neuroscience JCN Journal of Cardiovascular Nursing JCN Journal of Christian Nursing JCN Job Control Number JCN Journal of Child Neurology JCN joint communications network (US DoD) Newswire) - The Sanix Group would like to apologize a·pol·o·gize intr.v. a·pol·o·gized, a·pol·o·giz·ing, a·pol·o·giz·es 1. To make excuse for or regretful acknowledgment of a fault or offense. 2. To make a formal defense or justification in speech or writing. once again for the fire that occurred on August 25, 2005, at the Tomakomai Power Plant (Tomakomai City, Hokkaido; Plant manager: Masahiro Morooka) of Sanix Energy Incorporated (President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. : Shin-ichi Munemasa), one of our Group companies. We are especially sorry for all those living in the vicinity of the plant, as well as to other stakeholders Stakeholders All parties that have an interest, financial or otherwise, in a firm-stockholders, creditors, bondholders, employees, customers, management, the community, and the government. for the concerns and troubles that the fire has inflicted. Operations at the power plant partially resumed on October 7, 2005, using a temporary fuel supply line. At the same time, we are making every effort to completely restore the plant as immediately as possible. Described below are the outlook for the resumption RESUMPTION. To reassume; to promise again; as, the resumption of payment of specie by the banks is general. It also signifies to take things back; as the government has resumed the possession of all the lands which have not been paid for according to the requisitions of the law, and the of full-scale operations and the impact of the fire on our business performance. 1. Outlook for the resumption of full-fledged operations Restoration work of the damaged equipment and systems is scheduled to be completed by mid-November. After completion, it will take about two weeks to regulate the equipment and systems, and to start up the furnace furnace, enclosed space for the burning of fuel. There are many kinds of furnaces, the type depending upon the fuel and the use to which the heat produced within it is put. Most familiar are the furnaces used in the heating of buildings. . Full-fledged operations are expected to resume in December 2005. 2. Equipment and systems that need restoration Because of the damage from the fire, fuel tanks and their related systems need restoration, the expenses of which are estimated to be approximately 700 million yen. Since the damaged equipment and systems are covered by property and casualty insurance, the restoration expenses are predicted to be fully paid by the insurance. 3. Impact of the fire at the Tomakomai Power Plant on company performance Because of the suspended sus·pend v. sus·pend·ed, sus·pend·ing, sus·pends v.tr. 1. To bar for a period from a privilege, office, or position, usually as a punishment: suspend a student from school. operations of the power plant, revenues from electric power sales will decline during the partial and full-scale suspension periods. Regarding profits/loss, slow fuel consumption due to the limited operations will entail entail, in law, restriction of inheritance to a limited class of descendants for at least several generations. The object of entail is to preserve large estates in land from the disintegration that is caused by equal inheritance by all the heirs and by the ordinary additional costs for fuel storage. These additional costs will be listed as a special loss for both the interim period and the second half of the fiscal year. We estimate the impact of the fire at the Tomakomai Power Plant on our consolidated performance of FY 2006 ending March 2006 as follows.
First Half Second Half Full Year
as of Sept. 30 Oct. 1 - March 31 ending March 31
Impact on Net Sales (250) (300) (550)
Impact on Recurring Profit/Loss (20) (60) (80)
Izmpact on Net Income/Loss (240) (330) (570)
During restoration of the power plant, we will improve the disaster prevention systems for the plant. At the same time, we are fully determined to make every possible effort to restore society's trust in the Sanix Group. In this regard, we would greatly appreciate your generous understanding and continuous support. Copyright [c] 2005 JCN Newswire. All rights reserved. A division of Japan Corporate News Network K.K. |
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