Foreign Exchange, Crude Oil and Naphtha Market Fluctuations

「The difficulty in procuring and the sharp price increases for crude oil and naphtha from the Middle East, stemming from the closure of the Strait of Hormuz, are the greatest concern for the Group's management. In addition, higher import costs resulting from the weaker yen and other factors are expected to keep the operating environment challenging.」

「Revenue declined to ¥16.952 billion, down 1.8% year on year, as both shipment volumes and selling prices decreased.」

「On the earnings front, the Company worked to correct selling prices, promote efficient raw-material procurement, and develop new demand in response to soaring raw-material procurement costs. However, higher raw-material prices and transportation costs due to the weaker yen resulted in operating profit of ¥336 million, down 27.2% year on year, ordinary profit of ¥385 million, down 27.5%, and interim net profit attributable to owners of the parent of ¥250 million, down 29.5%.」

「Factors having a material impact on the Group's operating performance include shipment volumes, which are affected by economic activity, and selling prices, which are affected by raw material market conditions. Profit is affected by fluctuations in crude oil prices arising from geopolitical risks in the Middle East, exchange-rate movements, higher transportation costs and other factors, as well as supply-demand conditions driven by overseas economic conditions.」

「Revenue declined 6.0% year on year to ¥24.674 billion because shipment volumes of printing solvents declined and domestic crude oil and naphtha prices remained lower than in the previous year, causing selling prices to fall. Although the company worked to promote efficient raw-material purchasing and develop new demand, some raw-material prices rose due to yen depreciation and other factors, while transportation costs also increased. As a result, operating profit declined 41.3% to ¥583 million, ordinary profit declined 35.1% to ¥671 million, and quarterly net profit attributable to owners of the parent declined 35.3% to ¥447 million, with all three profit measures decreasing.」

「For the six months ended 30 September, revenue was ¥16.079 billion because domestic crude oil and naphtha prices remained lower than in the second quarter of the previous year, causing selling prices to decline.」

「Revenue was ¥8.002 billion because domestic crude oil and naphtha prices remained lower than in the first quarter of the previous year, causing selling prices to decline.」

「Factors that materially affect the operating results of the group include shipment volumes, which are affected by stagnation in economic activity caused by the spread of COVID-19, and selling prices, which are affected by raw-material market conditions. Profit is affected by fluctuations in crude oil prices resulting from geopolitical risks in the Middle East, foreign exchange movements, higher transportation costs and supply-demand conditions driven by overseas economic conditions.」

「Although shipments of some single solvents decreased, domestic crude oil and naphtha prices remained higher than in the previous year, causing selling prices to rise. Revenue was therefore ¥26.242 billion.」

「Although shipment volumes of some single solvents and automotive-related products decreased, domestic crude oil and naphtha prices remained higher than in the previous year, causing selling prices to rise. Revenue therefore increased 14.9% year on year to ¥17.086 billion.」

「Although shipment volumes of some single solvents and automotive-related products decreased, domestic crude oil and naphtha prices remained higher than in the previous year, causing selling prices to rise. Revenue therefore increased 13.0% year on year to ¥8.240 billion.」

「Although the company promoted efficient raw-material purchasing, tighter environmental regulations overseas led to continuing shortages of some raw materials and high crude oil prices, increasing raw-material costs. Operating profit declined 39.0% year on year to ¥993 million, ordinary profit declined 38.1% to ¥1.032 billion, and net profit declined 39.0% to ¥694 million, with all three profit measures decreasing.」

「Although the factors mentioned above contributed to higher revenue, tighter environmental regulations overseas resulted in continuing shortages of some raw materials and high crude oil prices, leading to a further increase in raw-material costs. Operating profit therefore declined 59.0% to ¥643 million, ordinary profit declined 57.8% to ¥675 million, and quarterly net profit declined 58.7% to ¥448 million, with all three profit measures decreasing.」

「Although product shipment volumes increased and selling prices were raised, crude oil and naphtha prices remained high due to overseas conditions from the end of the previous year, causing a further increase in raw-material costs that exceeded the increase in selling prices. As a result, operating profit declined 70.0% to ¥344 million, ordinary profit declined 68.7% to ¥366 million, and quarterly net profit declined 69.3% to ¥243 million, with all three profit measures decreasing.」

「Although product shipment volumes increased and selling prices were raised, crude oil and naphtha prices remained high from the end of the previous year due to overseas conditions, increasing raw-material costs by more than the increase in selling prices. As a result, operating profit declined 77.2% to ¥121 million, ordinary profit declined 75.2% to ¥135 million, and quarterly net profit declined 75.2% to ¥89 million, with all three profit measures decreasing.」

「Cost of sales was ¥20.781 billion. Crude oil and naphtha prices remained high from December 2020, causing a sharp increase in key raw-material prices, but the company continued to promote efficient raw-material purchasing in response to raw-material market conditions.」

「Although shipments of ethanol-related products increased due to the spread of COVID-19 and shipment volumes of automotive-related and other products were recovering, shipment volumes in the first and second quarters were lower than in the previous year. In addition, domestic crude oil and naphtha prices remained lower than in the previous year, causing selling prices to decline. Revenue therefore decreased 10.6% year on year to ¥19.087 billion.」

「Because domestic crude oil and naphtha prices remained lower than in the previous year, selling prices declined, resulting in revenue of ¥12.434 billion, down 13.1% year on year.」

「Although shipments of ethanol-related products increased due to the spread of COVID-19, shipment volumes of automotive-related and other products decreased. In addition, domestic crude oil and naphtha prices remained lower than in the previous year, causing selling prices to decline. Revenue therefore decreased 11.3% year on year to ¥6.343 billion.」

「Although shipments of ethanol-related products increased in March, annual shipment volumes declined due to the consumption-tax increase and natural disasters in September and October of the previous year. In addition, domestic crude oil and naphtha prices remained lower than in the previous year, causing selling prices to decline. Revenue therefore decreased 5.1% year on year to ¥28.063 billion.」

「Because domestic crude oil and naphtha prices remained lower than in the previous year, selling prices declined, resulting in revenue of ¥21.345 billion, down 5.4% year on year.」

「Revenue declined 2.0% year on year to ¥14.309 billion because product shipment volumes decreased due to fewer operating days and other factors, while domestic crude oil and naphtha prices remained lower than in the previous year, causing selling prices to decline.」

「On the earnings front, although transportation costs and other expenses increased, the Company further promoted efficient raw-material procurement, and the decline in crude oil and naphtha market prices provided a tailwind. As a result, operating profit was ¥240 million, up 100.3% year on year, ordinary profit was ¥258 million, up 94.1%, and net profit for the quarter was ¥171 million, up 92.4%, with all three profit measures increasing.」

「Although the company promoted efficient raw-material purchasing while crude oil and naphtha prices remained high, surging prices for key raw materials and higher transportation costs caused operating profit to decline 13.5% year on year to ¥979 million, ordinary profit to decline 12.4% to ¥1.012 billion, and net profit to decline 5.8% to ¥713 million, with all three profit measures decreasing.」

「On the earnings front, the Company worked to promote efficient raw-material procurement and develop new demand. However, crude oil and naphtha market prices remained higher than in the previous year, increasing raw-material costs. As a result, operating profit was ¥617 million, down 32.8% year on year, ordinary profit was ¥643 million, down 31.5%, and net profit for the quarter was ¥423 million, down 31.1%, with all three profit measures declining.」

「On the earnings front, the Company worked to promote efficient raw-material procurement and develop new demand. However, crude oil and naphtha market prices remained higher than in the previous year, increasing raw-material costs. As a result, operating profit was ¥437 million, down 41.2% year on year, ordinary profit was ¥455 million, down 39.9%, and net profit for the quarter was ¥298 million, down 39.4%, with all three profit measures declining.」

「On the earnings front, the Company worked to promote efficient raw-material procurement and develop new demand. However, crude oil and naphtha market prices remained higher than in the previous year, increasing raw-material costs. As a result, operating profit was ¥120 million, down 53.0% year on year, ordinary profit was ¥133 million, down 50.0%, and net profit for the quarter was ¥89 million, down 45.8%, with all three profit measures declining.」

「Although the company worked to promote efficient raw-material purchasing and develop new demand, crude oil and naphtha prices remained higher than in the previous year, increasing raw-material costs. Operating profit therefore declined 35.6% year on year to ¥1.131 billion, ordinary profit declined 34.6% to ¥1.155 billion, and net profit declined 35.3% to ¥757 million, with all three profit measures decreasing.」

「Crude oil and naphtha prices remained higher than in the previous year, increasing raw-material costs. As a result, operating profit declined 45.0% to ¥919 million, ordinary profit declined 44.1% to ¥939 million, and quarterly net profit declined 45.6% to ¥614 million, with all three profit measures decreasing.」

「Crude oil and naphtha prices remained higher than in the previous year, increasing raw-material costs. As a result, operating profit declined 35.8% to ¥743 million, ordinary profit declined 34.9% to ¥757 million, and quarterly net profit declined 36.8% to ¥492 million, with all three profit measures decreasing.」

「Crude oil and naphtha prices remained higher than in the previous year, increasing raw-material costs. As a result, operating profit declined 44.4% to ¥255 million, ordinary profit declined 42.8% to ¥266 million, and quarterly net profit declined 46.9% to ¥164 million, with all three profit measures decreasing.」

「Although product shipment volumes increased as a result of developing new demand and other factors, selling prices declined because domestic crude oil and naphtha prices remained lower than in the previous year. Revenue therefore decreased 6.4% year on year to ¥24.063 billion.」

「For the nine months ended 31 December, shipments of products and merchandise increased due to the development of new demand and other factors. However, because domestic crude oil and naphtha prices remained lower than in the previous year, selling prices declined, resulting in revenue of ¥18.1 billion, down 8.1% year on year.」

「Because domestic crude oil and naphtha prices remained lower than in the previous year, selling prices declined, resulting in a 11.952 billion yen decrease in revenue, down 9.5% year on year.」

「Because domestic crude oil and naphtha prices remained lower than in the previous year, selling prices declined, resulting in a 5.944 billion yen decrease in revenue, down 8.6% year on year.」

「The company is working to mitigate fluctuations in its performance by developing new customers in existing fields and new solvent markets, while rationalizing production and logistics. However, trends in the crude oil and naphtha markets, including foreign exchange movements, may affect its operating results.」