TOKYO, Apr 07 (Pulse News Wire) – SALA Corporation (2734.T) reported a derivative gain of 313 million yen for its first quarter ended February 28, 2026. The gain was primarily due to foreign exchange rate fluctuations affecting the valuation of outstanding foreign currency contracts related to imported materials used in its biomass power generation business.
In detail, the company recorded a foreign exchange reserve valuation gain of 7,389 million yen during the quarter. This gain was offset against a previously recognized loss of 7,076 million yen from the previous fiscal year-end, resulting in a net derivative evaluation benefit of 313 million yen. The company's subsidiary, SALA ePower Co., signed foreign currency purchase agreements in 2017 and 2025 to mitigate exchange rate risks associated with importing raw materials for its fixed-price electricity sales operations under the FIT scheme until 2039.
Looking ahead, the remaining foreign exchange reserves are expected to decrease as the project progresses, leading to negligible impact in the final year of the FIT program in 2039. All derivative gains and losses tied to these foreign exchange reservations will be fully offset through carryover accounting adjustments. SALA Corp maintains its dividend policy, aiming to sustain or exceed previous levels while excluding the effects of foreign exchange reservations.
The company targets a consolidated dividend payout ratio of at least 30%.
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