Fiscal Year Ending March 2026 Financial Results [Japanese Standards] (Consolidated)

Performance Overview

For the fiscal year ending March 2026, consolidated net sales were ¥20,303 billion (down 1.9% YoY). Domestic energy business experienced revenue decline mainly due to decreases in gas sales prices based on the fuel cost adjustment system, but total ordinary income reached ¥2,045 billion (up 7.8%), supported by increased profits from the U.S. Freeport Liquefied Natural Gas (LNG) terminal and upstream operations in the U.S. Net income attributable to owners of the parent increased to ¥1,527 billion (up 13.6%). The number of consolidated subsidiaries increased by 3 and decreased by 12, totaling 154 subsidiaries.

Segment-wise Performance

Domestic energy segment sales decreased to ¥1,643.4 billion (down 5.4% YoY), with segment profit at ¥71.9 billion (down 7.2%). Overseas energy business performed well with sales of ¥143.7 billion (up 12.2%) and segment profit of ¥88.3 billion (up 22.9%). The Life & Business Solutions segment achieved sales of ¥319.8 billion (up 13.2%) and segment profit of ¥37.4 billion (up 30.2%), reflecting increased revenues and profits.

Financial Position and Cash Flows

Total assets increased to ¥33,214 billion (up ¥1,208 billion from the previous year), and net assets rose to ¥18,540 billion (up ¥1,147 billion). The equity ratio improved to 54.4%. Cash flows from operating activities generated ¥340.7 billion in income, while investing activities resulted in cash outflows of ¥241.8 billion, and financing activities had outflows of ¥129.1 billion.

Dividend Policy

The annual dividend for the fiscal year ending March 2026 was ¥120 (an increase YoY), with a payout ratio of 30.7%. The forecast for the fiscal year ending March 2027 is an annual dividend of ¥130.

Earnings Forecast for Fiscal Year Ending March 2027

The company expects sales of ¥2,070 billion (up 2.0% YoY), operating profit of ¥150 billion (down 14.2%), ordinary income of ¥190 billion (down 7.1%), and net income attributable to owners of the parent of ¥145 billion (down 5.1%). The assumptions include crude oil at US$65 per barrel and exchange rate at ¥155/US$.