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Earnings presentation5019Idemitsu Kosan Co.,Ltd.Energy Resources

Financial Results Presentation for the First Quarter of Fiscal 2026

In the first quarter of fiscal 2026, profit before tax and excluding financial costs and inventory effects increased by ¥94.0 billion year on year, driven by a positive time lag in fuel oil and strong overseas trading. First-quarter results exceeded the full-year forecast announced in May, but the full-year forecast has not been revised in anticipation of a negative time lag going forward due to declining crude oil prices.

Worth reading
72In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
940
¥100 million (year-on-year increase in profit before tax excluding financial costs and inventory effects)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationFirst quarter of fiscal 202611 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥22,718 100 million+23.8%
Operating profit¥3,075 100 million
Net income¥2,175 100 million+696.0%
Results for the three months of the current quarter
Profit before tax excluding financial costs
¥3,226 100 million
Profit before tax excluding financial costs and inventory effects
¥1,561 100 million
Profit for the period
¥2,175 100 million
Full-year earnings forecast
Profit before tax excluding financial costs
¥1,400 100 million
Profit for the period
¥900 100 million
Crude Oil Prices
81.3 USD/barrel
Australian thermal coal spot price
126.1 USD/ton
Exchange rate
151.3 JPY/USD
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Generally in line with plan. First-quarter results exceeded the full-year forecast.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Time lag+¥98.7 billion
  • Trading+¥15.8 billion
  • Product imports and exports+¥13.2 billion
  • Lower core-fuel volumes-¥5.7 billion
  • Core-fuel margins-¥5.5 billion
  • In-house fuel costs and other factors-¥21.0 billion
  • Basic Chemicals volumes-¥7.3 billion
  • Power and renewables: gains on biomass fuel procurement derivatives+¥1.7 billion
  • Oil development: higher condensate volumes in VietnamAmount disclosed (amount: 非開示)
  • Coal volumes+¥2.9 billion
  • Coal prices+¥1.1 billion
  • Coal foreign exchange-¥2.1 billion
  • Higher coal costs and other factors-¥2.3 billion
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Crude Oil Prices81.3 USD/barrel
  • Australian thermal coal spot price126.1 USD/ton
  • Exchange rate151.3 JPY/USD
  • Fourth-quarter crude oil price65 USD/barrel
  • Second-to-fourth-quarter crude oil price75 USD/barrel
  • Fourth-quarter exchange rate150 JPY/USD
  • Second-to-fourth-quarter exchange rate150 JPY/USD
New initiatives
  • Establishment of the India, Middle East and Africa Business Promotion Office
  • Establishment of the LNG Business Promotion Office
  • US$500 million investment in MidOcean Energy
  • Decision to provide a subsidy of up to ¥3 billion for the development of mass-production technology for space-use CIGS solar cells
  • Start of basic design for the No. 2 oil chemical recycling facility
  • Digitization of facility management using AI image diagnostics and SDM-kun
  • Investment to improve refinery utilization
  • Consolidation of the Chiba-area ethylene facility under Mitsui Chemicals
  • Integration of the polyolefin and other businesses
Key KPIsA metric the company considers important as a management benchmark.
  • Dubai crude oil price96.1 USD/barrel
    Year on year against the same period last year+29.2 USD/barrel, +43.6%
  • Australian thermal coal spot price119.6 USD/ton
    Year on year against the same period last year+15.0 USD/ton, +14.3%
  • Exchange rate159.5 JPY/USD
    Year on year against the same period last year+14.9 JPY/USD, +10.3%
  • Refinery utilization rate (BSD)84 %
    Year on year against the same period last year-1 percentage point
  • Number of service stations5,757 locations
  • Total gas and oil production30 kboed
    Year on year against the same period last year+15.3%
  • Coal production1,505 thousand tonnes
    Year on year against the same period last year+15.3%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Sales and production volumes are disclosed, but a metric combining unit prices and volumes is not disclosed
Segment results
  • Fuel oil
    Sales¥19,240 100 million (YoY +25.9%)
    Profit before tax excluding financial costs¥1,272 100 million
  • Basic Chemicals
    Sales¥1,128 100 million (YoY +14.4%)
    Profit before tax excluding financial costs¥1 100 million
  • High-Performance Materials
    Sales¥1,476 100 million (YoY +14.4%)
    Profit before tax excluding financial costs¥145 100 million
  • Electricity and Renewable Energy
    Sales¥194 100 million (YoY -21.7%)
    Profit before tax excluding financial costs¥-13 100 million
  • Resource
    Sales¥659 100 million (YoY +26.3%)
    Profit before tax excluding financial costs¥189 100 million
  • Other
    Sales¥21 100 million (YoY -37.6%)
    Profit before tax excluding financial costs¥-34 100 million
Medium-term management plan targets
  • TargetRefinery utilization rate
    Target valueAt least 90%
    Target fiscal yearFY2030
  • TargetProfit contribution from higher utilization
    Target value+¥20–30 billion (versus fiscal 2025)
    Target fiscal yearFY2030
  • TargetIMEA regional profit scale
    Target value¥10 billion
    Target fiscal yearFY2030
  • TargetLNG business profit scale
    Target valueAt least ¥10 billion
    Target fiscal yearFY2030
  • TargetIncrease in profit before tax from the GRIT business strategy
    Target value+¥110 billion
    Target fiscal yearFY2030
  • TargetIncrease in profit before tax from the GROWTH business
    Target value+¥60 billion
    Target fiscal yearFY2030
Financial targets
Net debt-to-equity ratio
Actual results1.17 (as of 30 June 2026)
Equity ratio
Actual results27.2% (as of 30 June 2026)
Market Size / Share
  • Global share of automotive lubricantsNo. 8
Number of stores and locations
Number of stores
End of period5,757 locations
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredFirst quarter of fiscal 2026
Net Sales¥22,718 100 million (YoY +23.8%)
Operating profit¥3,075 100 million
Net income¥2,175 100 million (YoY +696.0%)
Results for the three months of the current quarterProfit before tax excluding financial costs ¥3,226 100 million / Profit before tax excluding financial costs and inventory effects ¥1,561 100 million / Profit for the period ¥2,175 100 million
Full-year earnings forecastProfit before tax excluding financial costs ¥1,400 100 million / Profit for the period ¥900 100 million / Crude Oil Prices 81.3 USD/barrel / Australian thermal coal spot price 126.1 USD/ton / Exchange rate 151.3 JPY/USD
Self-assessment against the planGenerally in line with plan. First-quarter results exceeded the full-year forecast.
Segment resultsSegment Fuel oil / Sales ¥19,240 100 million (YoY +25.9%) / Profit before tax excluding financial costs ¥1,272 100 million, Segment Basic Chemicals / Sales ¥1,128 100 million (YoY +14.4%) / Profit before tax excluding financial costs ¥1 100 million, Segment High-Performance Materials / Sales ¥1,476 100 million (YoY +14.4%) / Profit before tax excluding financial costs ¥145 100 million, Segment Electricity and Renewable Energy / Sales ¥194 100 million (YoY -21.7%) / Profit before tax excluding financial costs ¥-13 100 million, Segment Resource / Sales ¥659 100 million (YoY +26.3%) / Profit before tax excluding financial costs ¥189 100 million, Segment Other / Sales ¥21 100 million (YoY -37.6%) / Profit before tax excluding financial costs ¥-34 100 million
Breakdown of Factors Affecting the ChangeFactors Time lag / Amount +¥98.7 billion, Factors Trading / Amount +¥15.8 billion, Factors Product imports and exports / Amount +¥13.2 billion, Factors Lower core-fuel volumes / Amount -¥5.7 billion, Factors Core-fuel margins / Amount -¥5.5 billion, Factors In-house fuel costs and other factors / Amount -¥21.0 billion, Factors Basic Chemicals volumes / Amount -¥7.3 billion, Factors Power and renewables: gains on biomass fuel procurement derivatives / Amount +¥1.7 billion, Factors Oil development: higher condensate volumes in Vietnam / Amount Amount disclosed (amount: Not disclosed), Factors Coal volumes / Amount +¥2.9 billion, Factors Coal prices / Amount +¥1.1 billion, Factors Coal foreign exchange / Amount -¥2.1 billion, Factors Higher coal costs and other factors / Amount -¥2.3 billion
Key KPIsIndicator Dubai crude oil price / Value 96.1 USD/barrel / Year on year against the same period last year +29.2 USD/barrel, +43.6%, Indicator Australian thermal coal spot price / Value 119.6 USD/ton / Year on year against the same period last year +15.0 USD/ton, +14.3%, Indicator Exchange rate / Value 159.5 JPY/USD / Year on year against the same period last year +14.9 JPY/USD, +10.3%, Indicator Refinery utilization rate (BSD) / Value 84 % / Year on year against the same period last year -1 percentage point, Indicator Number of service stations / Value 5,757 locations / Year on year against the same period last year Not disclosed, Indicator Total gas and oil production / Value 30 kboed / Year on year against the same period last year +15.3%, Indicator Coal production / Value 1,505 thousand tonnes / Year on year against the same period last year +15.3%
Unit price and quantity metricsSales and production volumes are disclosed, but a metric combining unit prices and volumes is not disclosed
Number of stores and locationsNumber of stores End of period 5,757 locations / Number of store openings and closures during the period Not disclosed
Assumptions Underlying the Business OutlookItem Crude Oil Prices / Value 81.3 USD/barrel, Item Australian thermal coal spot price / Value 126.1 USD/ton, Item Exchange rate / Value 151.3 JPY/USD, Item Fourth-quarter crude oil price / Value 65 USD/barrel, Item Second-to-fourth-quarter crude oil price / Value 75 USD/barrel, Item Fourth-quarter exchange rate / Value 150 JPY/USD, Item Second-to-fourth-quarter exchange rate / Value 150 JPY/USD
Medium-term management plan targetsTarget Refinery utilization rate / Target value At least 90% / Target fiscal year FY2030, Target Profit contribution from higher utilization / Target value +¥20–30 billion (versus fiscal 2025) / Target fiscal year FY2030, Target IMEA regional profit scale / Target value ¥10 billion / Target fiscal year FY2030, Target LNG business profit scale / Target value At least ¥10 billion / Target fiscal year FY2030, Target Increase in profit before tax from the GRIT business strategy / Target value +¥110 billion / Target fiscal year FY2030, Target Increase in profit before tax from the GROWTH business / Target value +¥60 billion / Target fiscal year FY2030
Financial targetsNet debt-to-equity ratio Actual results 1.17 (as of 30 June 2026) / Equity ratio Actual results 27.2% (as of 30 June 2026)
Market Size / ShareItem Global share of automotive lubricants / Value No. 8
New initiativesEstablishment of the India, Middle East and Africa Business Promotion Office, Establishment of the LNG Business Promotion Office, US$500 million investment in MidOcean Energy, Decision to provide a subsidy of up to ¥3 billion for the development of mass-production technology for space-use CIGS solar cells, Start of basic design for the No. 2 oil chemical recycling facility, Digitization of facility management using AI image diagnostics and SDM-kun, Investment to improve refinery utilization, Consolidation of the Chiba-area ethylene facility under Mitsui Chemicals, Integration of the polyolefin and other businesses
Items this document does not state (13)
Ordinary incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesProgress against full-year forecastNumber of employeesRisk amount incorporated into the outlookAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders 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.

The positive time lag in fuel oil, strong overseas trading, product imports and exports, and higher production volumes in the Resources segment contributed to higher profit. Factors weighing on profit included lower volumes of core fuels, weaker core-fuel margins, and higher in-house fuel costs.

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Financial Results Presentation for the First Quarter of Fiscal 2026 | Idemitsu Kosan Co.,Ltd. (5019) timely disclosure | Komori