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Presentation materials for financial results5019Idemitsu Kosan Co.,Ltd.Energy Resources

Fiscal 2025 Financial Results Presentation

In FY2025, although revenue declined, operating profit and net income increased due to an improvement in the fuel oil time lag and improved performance in the power and renewable energy businesses. For FY2026, the company plans to voluntarily adopt IFRS and forecasts profit before tax excluding finance costs and inventory effects of ¥140.0 billion and net income of ¥90.0 billion, assuming a negative time lag resulting from lower crude oil prices.

Worth reading
85Important
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
294
¥100 million (year-on-year increase in operating profit plus share of profit or loss of investments accounted for using the equity method, excluding inventory effects)
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsFY2025 full year15 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales81,059 Hundreds of millions of yen-11.8%
Operating profit2,122 Hundreds of millions of yen+30.8%
Ordinary income2,296 Hundreds of millions of yen+6.9%
Net income1,719 Hundreds of millions of yen+65.2%
Results for the three months of the current quarterSegment total (excluding inventory effects): ¥127.2 billion in Q4 FY2025, including ¥117.1 billion for the fuel oil segment, ¥3.7 billion for basic chemicals, ¥4.5 billion for high-performance materials, a ¥1.4 billion loss for power and renewable energy, ¥3.7 billion for oil development, ¥3.3 billion for coal, and a ¥3.6 billion loss for other businesses
Full-year earnings forecast
Profit before tax excluding finance costs
1,200 Hundreds of millions of yen
Profit before tax excluding finance costs and inventory effects
1,400 Hundreds of millions of yen
Net income for the current fiscal year
750 Hundreds of millions of yen
Net income (excluding inventory effects)
900 Hundreds of millions of yen
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Operating profit plus share of profit or loss of investments accounted for using the equity method was ¥69.1 billion higher than forecast
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Fuel oil time lag967 Hundreds of millions of yen
  • Fuel oil exports449 Hundreds of millions of yen
  • Core-fuel margins-258 Hundreds of millions of yen
  • Lower core-fuel volumes-162 Hundreds of millions of yen
  • Higher costs associated with scheduled maintenance-207 Hundreds of millions of yen
  • Coal prices-360 Hundreds of millions of yen
  • Coal costs-35 Hundreds of millions of yen
  • Coal volumes-27 Hundreds of millions of yen
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Dubai crude oil price1Q 100.0、2Q 80.0、3Q 80.0、4Q 65.0、FY 81.3
  • Australian thermal coal spot price126.1 USD/ton
  • Exchange rate151.3 JPY/USD
New initiatives
  • Voluntary adoption of IFRS from FY2026
  • Introduction of progressive dividends from FY2026
  • Investment of USD 500 million in MidOcean Energy
  • Start of commercial operations at a chemical recycling facility for used oil (processing capacity: 20,000 tonnes per year)
  • Decision to invest in a pilot plant for CIGS solar cells for space applications
  • Start of construction of a large-scale pilot plant for solid electrolytes
Key KPIsA metric the company considers important as a management benchmark.
  • ROE10.6 %
    Year on year against the same period last yearImproved from 7.1% year on year
  • Refinery utilization rate (BSD)86 %
    Year on year against the same period last yearImproved from 82% year on year
  • Net debt-to-equity ratio0.62 times
    Year on year against the same period last yearFlat
  • Equity ratio36 %
    Year on year against the same period last yearFlat
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Total fuel oil sales39,777 thousand kL
    Year-on-year (%)0.5
  • Total domestic fuel oil sales32,990 thousand kL
    Year-on-year (%)-2.2
  • Fuel oil exports6,787 thousand kL
    Year-on-year (%)16.2
  • Basic chemicals sales volume3,004 thousand tonnes
    Year-on-year (%)-1.5
  • Retail electricity sales volume1,805 million kWh
    Year-on-year (%)3.3
Segment results
  • Fuel oil
    Net Sales67,934
    Profit2,071
    Profit unitHundreds of millions of yen
    Revenue year-on-year_pct-11.7
    Year-on-year profit_pct36.2
  • Basic Chemicals
    Net Sales4,914
    Profit-68
    Revenue year-on-year_pct-16.3
    Year-on-year change in profitImproved (from a ¥8.0 billion loss to a ¥6.8 billion loss)
  • High-Performance Materials
    Net Sales5,032
    Profit334
    Revenue year-on-year_pct0
    Year-on-year change in profit+¥5.2 billion
  • Electricity and Renewable Energy
    Net Sales982
    Profit-18
    Revenue year-on-year_pct-23
    Year-on-year change in profitImproved (from a ¥12.3 billion loss to a ¥1.8 billion loss)
  • Resource
    Net Sales2,035
    Profit331
    Revenue year-on-year_pct-23.3
    Year-on-year change in profit▲¥44.2 billion
  • Other
    Net Sales163
    Profit-209
    Revenue year-on-year_pct55.9
    Year-on-year change in profitImproved (from a ¥22.7 billion loss to a ¥20.9 billion loss)
Medium-term management plan targets
ROE target of 12.0% for FY2027. Net income excluding time lag effects of ¥179.0 billion for FY2026 and ¥172.0 billion under the FY2027 medium-term plan
Financial targets
ROE: 10.6% actual for FY2025, with a target of 12.0% for FY2027. Net debt-to-equity ratio: 0.62x at the end of FY2025, with a forecast of 1.10x at the end of March 2027. Equity ratio: 36.0% at the end of FY2025, with a forecast of 28% at the end of March 2027
Market Size / Share
8th-largest global share in lubricants
Number of stores and locations
Number of service stations: 5,835 at the end of FY2025. Number of openings and closures during the period: not disclosed
Capital expenditures
¥2,147 100 million FY2025 capital expenditure, on a cash disbursement basis
Annual Dividend
¥36 per share (¥18 interim, ¥18 year-end). The company currently plans to maintain the annual dividend at ¥36 per share in FY2026 (¥18 each at the interim and year-end)
Payout ratio
Total payout ratio of 50% or more
Acquisition of treasury shares
¥25.0 billion, resolved on 12 May 2026. Number of shares to be acquired and acquisition period: not disclosed
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredFY2025 full year
Net Sales81,059 Hundreds of millions of yen (YoY -11.8%)
Operating profit2,122 Hundreds of millions of yen (YoY +30.8%)
Ordinary income2,296 Hundreds of millions of yen (YoY +6.9%)
Net income1,719 Hundreds of millions of yen (YoY +65.2%)
Results for the three months of the current quarterSegment total (excluding inventory effects): ¥127.2 billion in Q4 FY2025, including ¥117.1 billion for the fuel oil segment, ¥3.7 billion for basic chemicals, ¥4.5 billion for high-performance materials, a ¥1.4 billion loss for power and renewable energy, ¥3.7 billion for oil development, ¥3.3 billion for coal, and a ¥3.6 billion loss for other businesses
Full-year earnings forecastProfit before tax excluding finance costs 1,200 Hundreds of millions of yen / Profit before tax excluding finance costs and inventory effects 1,400 Hundreds of millions of yen / Net income for the current fiscal year 750 Hundreds of millions of yen / Net income (excluding inventory effects) 900 Hundreds of millions of yen
Self-assessment against the planOperating profit plus share of profit or loss of investments accounted for using the equity method was ¥69.1 billion higher than forecast
Segment resultsSegment Fuel oil / Net Sales 67,934 / Profit 2,071 / Profit unit Hundreds of millions of yen / Revenue year-on-year_pct -11.7 / Year-on-year profit_pct 36.2, Segment Basic Chemicals / Net Sales 4,914 / Profit -68 / Revenue year-on-year_pct -16.3 / Year-on-year change in profit Improved (from a ¥8.0 billion loss to a ¥6.8 billion loss), Segment High-Performance Materials / Net Sales 5,032 / Profit 334 / Revenue year-on-year_pct 0 / Year-on-year change in profit +¥5.2 billion, Segment Electricity and Renewable Energy / Net Sales 982 / Profit -18 / Revenue year-on-year_pct -23 / Year-on-year change in profit Improved (from a ¥12.3 billion loss to a ¥1.8 billion loss), Segment Resource / Net Sales 2,035 / Profit 331 / Revenue year-on-year_pct -23.3 / Year-on-year change in profit ▲¥44.2 billion, Segment Other / Net Sales 163 / Profit -209 / Revenue year-on-year_pct 55.9 / Year-on-year change in profit Improved (from a ¥22.7 billion loss to a ¥20.9 billion loss)
Breakdown of Factors Affecting the ChangeFactors Fuel oil time lag / Amount 967 Hundreds of millions of yen, Factors Fuel oil exports / Amount 449 Hundreds of millions of yen, Factors Core-fuel margins / Amount -258 Hundreds of millions of yen, Factors Lower core-fuel volumes / Amount -162 Hundreds of millions of yen, Factors Higher costs associated with scheduled maintenance / Amount -207 Hundreds of millions of yen, Factors Coal prices / Amount -360 Hundreds of millions of yen, Factors Coal costs / Amount -35 Hundreds of millions of yen, Factors Coal volumes / Amount -27 Hundreds of millions of yen
Key KPIsIndicator name ROE / Value 10.6 % / Year on year against the same period last year Improved from 7.1% year on year, Indicator name Refinery utilization rate (BSD) / Value 86 % / Year on year against the same period last year Improved from 82% year on year, Indicator name Net debt-to-equity ratio / Value 0.62 times / Year on year against the same period last year Flat, Indicator name Equity ratio / Value 36 % / Year on year against the same period last year Flat
Unit price and quantity metricsIndicator name Total fuel oil sales / Value 39,777 thousand kL / Year-on-year (%) 0.5 thousand kL, Indicator name Total domestic fuel oil sales / Value 32,990 thousand kL / Year-on-year (%) -2.2 thousand kL, Indicator name Fuel oil exports / Value 6,787 thousand kL / Year-on-year (%) 16.2 thousand kL, Indicator name Basic chemicals sales volume / Value 3,004 thousand tonnes / Year-on-year (%) -1.5 thousand tonnes, Indicator name Retail electricity sales volume / Value 1,805 million kWh / Year-on-year (%) 3.3 million kWh
Number of stores and locationsNumber of service stations: 5,835 at the end of FY2025. Number of openings and closures during the period: not disclosed
Assumptions Underlying the Business OutlookIndicator name Dubai crude oil price / Value 1Q 100.0、2Q 80.0、3Q 80.0、4Q 65.0、FY 81.3, Indicator name Australian thermal coal spot price / Value 126.1 USD/ton, Indicator name Exchange rate / Value 151.3 JPY/USD
Medium-term management plan targetsROE target of 12.0% for FY2027. Net income excluding time lag effects of ¥179.0 billion for FY2026 and ¥172.0 billion under the FY2027 medium-term plan
Financial targetsROE: 10.6% actual for FY2025, with a target of 12.0% for FY2027. Net debt-to-equity ratio: 0.62x at the end of FY2025, with a forecast of 1.10x at the end of March 2027. Equity ratio: 36.0% at the end of FY2025, with a forecast of 28% at the end of March 2027
Annual Dividend¥36 per share (¥18 interim, ¥18 year-end). The company currently plans to maintain the annual dividend at ¥36 per share in FY2026 (¥18 each at the interim and year-end)
Payout ratioTotal payout ratio of 50% or more
Acquisition of treasury shares¥25.0 billion, resolved on 12 May 2026. Number of shares to be acquired and acquisition period: not disclosed
Capital expenditures¥2,147 100 million (FY2025 capital expenditure, on a cash disbursement basis)
Market Size / Share8th-largest global share in lubricants
New initiativesVoluntary adoption of IFRS from FY2026, Introduction of progressive dividends from FY2026, Investment of USD 500 million in MidOcean Energy, Start of commercial operations at a chemical recycling facility for used oil (processing capacity: 20,000 tonnes per year), Decision to invest in a pilot plant for CIGS solar cells for space applications, Start of construction of a large-scale pilot plant for solid electrolytes
Items this document does not state (8)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesProgress against full-year forecastNumber of employeesRisk amount incorporated into the outlookOrders received and order backlogKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

In FY2025, earnings increased due to a positive time lag in fuel oil and improved performance in the power and renewable energy businesses, despite lower coal prices. For FY2026, the company expects a substantial negative time lag based on its assumption of lower crude oil prices.

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Fiscal 2025 Financial Results Presentation | Idemitsu Kosan Co.,Ltd. (5019) timely disclosure | Komori