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Earnings presentation5019Idemitsu Kosan Co.,Ltd.Energy Resources

Financial Results Briefing Materials for the Second Quarter of Fiscal 2026

In the second quarter of fiscal 2026, profit excluding inventory effects exceeded the year-earlier period, due to growth in the overseas business and positive time-lag effects in fuel oil, among other factors. As a result, the company raised its full-year fiscal 2026 forecasts for profit before tax and net income, both excluding inventory effects.

Worth reading
64In 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
1000
¥100 million
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationSecond quarter of FY202614 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥50,559 100 million+33.6%
Operating profit¥4,257 100 million+644.6%
Net income¥3,224 100 million+422.5%
Full-year earnings forecast
Profit before tax excluding financial costs
¥4,250 100 million
Profit before tax excluding financial costs (excluding inventory impact)
¥2,400 100 million
Profit for the period
¥2,950 100 million
Profit for the period (excluding inventory impact)
¥1,650 100 million
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Fuel oil time lag+¥87.8 billion
  • Fuel oil trading+¥36.6 billion
  • Fuel oil product imports and exports+¥28.0 billion
  • Fuel oil own-use fuel costs-¥35.1 billion
  • Fuel oil primary fuel margin-¥29.5 billion
  • Improved aromatics market conditions in basic chemicals+¥8.3 billion
  • Regular maintenance at Toa Oil and power plant trouble in the power and renewable energy business-¥7.2 billion
  • Higher condensate volumes and prices in the resources business+¥9.0 billion
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Dubai crude oil price91.8 USD/barrel
  • Australian thermal coal spot price131.9 USD/ton
  • Exchange rate157.2 JPY/USD
  • Dubai crude oil price from November onward85 USD/barrel
  • Australian thermal coal spot price from November onward136 USD/ton
  • Exchange rate from November onward155 JPY/USD
New initiatives
  • Enhancement of facility and operations management through a utilization improvement project
  • Simulator-based training for operating procedures and assignment of dedicated veteran instructors
  • Opening of a laboratory for developing space-use CIGS solar cells at OASIS on the University of California, Santa Barbara campus
  • Integrated production within the Group, from chemical-recycling oil derived from used plastics through to naphtha
  • Construction of lithium sulfide production equipment and a large-scale pilot plant related to solid electrolytes
Key KPIsA metric the company considers important as a management benchmark.
  • Dubai crude oil price94.6 USD/barrel
    Year on year against the same period last year+USD 26.2/barrel
  • Australian thermal coal spot price127.9 USD/ton
    Year on year against the same period last year+USD 25.4/tonne
  • Exchange rate159.4 JPY/USD
    Year on year against the same period last year+¥13.3/USD
  • Refinery utilization rate (BSD)91 %
    Year on year against the same period last year+10 percentage points
  • Total production volume in the resources segment27.8 kboed
    Year on year against the same period last year+13.4%
  • Coal production3,265 thousand tonnes
    Year on year against the same period last year+24.0%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Total fuel oil sales18,741 thousand kL
    Year on year against the same period last year+3.1%
  • Total domestic fuel oil sales15,213 thousand kL
    Year on year against the same period last year-1.5%
  • Fuel oil exports3,528 thousand kL
    Year on year against the same period last year+28.9%
  • Basic chemicals sales volume1,468 thousand tonnes
    Year on year against the same period last year-0.7%
  • Lubricant sales volume535 thousand kL
    Year on year against the same period last year+0.8%
Segment results
  • Fuel oil
    Revenue¥42,144 100 million (YoY +34.5%)
    Profit before tax excluding financial costs (excluding inventory impact)¥1,303 100 million (YoY +56.4%)
  • Basic Chemicals
    Revenue¥3,306 100 million (YoY +40.6%)
    Profit before tax excluding financial costs (excluding inventory impact)¥13 100 million
  • High-Performance Materials
    Revenue¥3,122 100 million (YoY +22.0%)
    Profit before tax excluding financial costs (excluding inventory impact)¥353 100 million (YoY +16.6%)
  • Power and Renewable Energy
    Revenue¥478 100 million (YoY -12.1%)
    Profit before tax excluding financial costs (excluding inventory impact)¥-36 100 million
  • Resources
    Revenue¥1,442 100 million (YoY +48.8%)
    Profit before tax excluding financial costs (excluding inventory impact)¥386 100 million (YoY +96.9%)
  • Other
    Revenue¥69 100 million (YoY -28.4%)
    Profit before tax excluding financial costs (excluding inventory impact)¥-38 100 million
Medium-term management plan targets
  • TargetIncrease in profit before tax excluding financial expenses through GRIT and other initiatives
    Target fiscal yearFY2030
    Target value+¥70.0 billion
  • TargetIncrease in profit before tax excluding financial expenses through business integration and restructuring
    Target fiscal yearFY2030
    Target value+¥40 billion
  • TargetRefinery utilization rate excluding scheduled maintenance
    Target fiscal yearFY2030
    Target valueMore than 90%
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
  • +¥29.0 billion
    DetailsImpact on profit before tax excluding inventory effects if the crude oil price moves by +USD 10/barrel from the assumption
  • +¥121.0 billion
    DetailsImpact of fluctuations in crude oil prices and foreign exchange rates on profit before tax including inventory effects
Market Size / Share
Lubricating oilWorld's eighth-largest market share
Number of stores and locations
Number at period-end5,735 service stations
Capital expenditures
¥2,650 100 million
Annual Dividend
Fiscal 2026
Annual Dividend¥40/share
Interim¥18/share
Full-year forecast¥22/share forecast for the year-end dividend
Fiscal 2027 onward
Annual DividendAnnual dividend of at least ¥44/share
InterimInterim dividend of at least ¥22/share
End of periodInterim dividend of at least ¥22/share
Payout ratio
A payout of at least 50% of net income excluding inventory effects
Acquisition of treasury shares
Buyback limit¥25 billion
Acquisition periodScheduled to begin on 12 November 2026
Additional acquisitionAmount and timing of additional purchases to be determined from the third quarter onward
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredSecond quarter of FY2026
Net Sales¥50,559 100 million (YoY +33.6%)
Operating profit¥4,257 100 million (YoY +644.6%)
Net income¥3,224 100 million (YoY +422.5%)
Full-year earnings forecastProfit before tax excluding financial costs ¥4,250 100 million / Profit before tax excluding financial costs (excluding inventory impact) ¥2,400 100 million / Profit for the period ¥2,950 100 million / Profit for the period (excluding inventory impact) ¥1,650 100 million
Segment resultsSegment Fuel oil / Revenue ¥42,144 100 million (YoY +34.5%) / Profit before tax excluding financial costs (excluding inventory impact) ¥1,303 100 million (YoY +56.4%), Segment Basic Chemicals / Revenue ¥3,306 100 million (YoY +40.6%) / Profit before tax excluding financial costs (excluding inventory impact) ¥13 100 million, Segment High-Performance Materials / Revenue ¥3,122 100 million (YoY +22.0%) / Profit before tax excluding financial costs (excluding inventory impact) ¥353 100 million (YoY +16.6%), Segment Power and Renewable Energy / Revenue ¥478 100 million (YoY -12.1%) / Profit before tax excluding financial costs (excluding inventory impact) ¥-36 100 million, Segment Resources / Revenue ¥1,442 100 million (YoY +48.8%) / Profit before tax excluding financial costs (excluding inventory impact) ¥386 100 million (YoY +96.9%), Segment Other / Revenue ¥69 100 million (YoY -28.4%) / Profit before tax excluding financial costs (excluding inventory impact) ¥-38 100 million
Breakdown of Factors Affecting the ChangeFactors Fuel oil time lag / Amount +¥87.8 billion, Factors Fuel oil trading / Amount +¥36.6 billion, Factors Fuel oil product imports and exports / Amount +¥28.0 billion, Factors Fuel oil own-use fuel costs / Amount -¥35.1 billion, Factors Fuel oil primary fuel margin / Amount -¥29.5 billion, Factors Improved aromatics market conditions in basic chemicals / Amount +¥8.3 billion, Factors Regular maintenance at Toa Oil and power plant trouble in the power and renewable energy business / Amount -¥7.2 billion, Factors Higher condensate volumes and prices in the resources business / Amount +¥9.0 billion
Key KPIsIndicator name Dubai crude oil price / Value 94.6 USD/barrel / Year on year against the same period last year +USD 26.2/barrel, Indicator name Australian thermal coal spot price / Value 127.9 USD/ton / Year on year against the same period last year +USD 25.4/tonne, Indicator name Exchange rate / Value 159.4 JPY/USD / Year on year against the same period last year +¥13.3/USD, Indicator name Refinery utilization rate (BSD) / Value 91 % / Year on year against the same period last year +10 percentage points, Indicator name Total production volume in the resources segment / Value 27.8 kboed / Year on year against the same period last year 13.4 kboed, Indicator name Coal production / Value 3,265 thousand tonnes / Year on year against the same period last year 24 thousand tonnes
Unit price and quantity metricsIndicator name Total fuel oil sales / Value 18,741 thousand kL / Year on year against the same period last year 3.1 thousand kL, Indicator name Total domestic fuel oil sales / Value 15,213 thousand kL / Year on year against the same period last year -1.5 thousand kL, Indicator name Fuel oil exports / Value 3,528 thousand kL / Year on year against the same period last year 28.9 thousand kL, Indicator name Basic chemicals sales volume / Value 1,468 thousand tonnes / Year on year against the same period last year -0.7 thousand tonnes, Indicator name Lubricant sales volume / Value 535 thousand kL / Year on year against the same period last year 0.8 thousand kL
Number of stores and locationsNumber at period-end 5,735 service stations / Number of store openings and closures during the period Not disclosed
Assumptions Underlying the Business OutlookItem Dubai crude oil price / Value 91.8 USD/barrel, Item Australian thermal coal spot price / Value 131.9 USD/ton, Item Exchange rate / Value 157.2 JPY/USD, Item Dubai crude oil price from November onward / Value 85 USD/barrel, Item Australian thermal coal spot price from November onward / Value 136 USD/ton, Item Exchange rate from November onward / Value 155 JPY/USD
Risk amount incorporated into the outlookDetails Impact on profit before tax excluding inventory effects if the crude oil price moves by +USD 10/barrel from the assumption / Amount +¥29.0 billion, Details Impact of fluctuations in crude oil prices and foreign exchange rates on profit before tax including inventory effects / Amount +¥121.0 billion
Medium-term management plan targetsTarget Increase in profit before tax excluding financial expenses through GRIT and other initiatives / Target fiscal year FY2030 / Target value +¥70.0 billion, Target Increase in profit before tax excluding financial expenses through business integration and restructuring / Target fiscal year FY2030 / Target value +¥40 billion, Target Refinery utilization rate excluding scheduled maintenance / Target fiscal year FY2030 / Target value More than 90%
Annual DividendFiscal 2026 Annual Dividend ¥40/share / Interim ¥18/share / Full-year forecast ¥22/share forecast for the year-end dividend / Fiscal 2027 onward Annual Dividend Annual dividend of at least ¥44/share / Interim Interim dividend of at least ¥22/share / End of period Interim dividend of at least ¥22/share
Payout ratioA payout of at least 50% of net income excluding inventory effects
Acquisition of treasury sharesBuyback limit ¥25 billion / Acquisition period Scheduled to begin on 12 November 2026 / Additional acquisition Amount and timing of additional purchases to be determined from the third quarter onward
Capital expenditures¥2,650 100 million
Market Size / ShareLubricating oil World's eighth-largest market share
New initiativesEnhancement of facility and operations management through a utilization improvement project, Simulator-based training for operating procedures and assignment of dedicated veteran instructors, Opening of a laboratory for developing space-use CIGS solar cells at OASIS on the University of California, Santa Barbara campus, Integrated production within the Group, from chemical-recycling oil derived from used plastics through to naphtha, Construction of lithium sulfide production equipment and a large-scale pilot plant related to solid electrolytes
Items this document does not state (11)
Ordinary incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planNumber of employeesFinancial targetsOrders 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 company cites strong performance in the overseas business, positive time-lag effects in fuel oil, and a reduction in negative time-lag effects following an increase in its oil price assumptions. For the full-year forecasts, it raised profit before tax excluding inventory effects by ¥100 billion and net income by ¥75 billion.

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