Worth reading
62In 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
3000
Billion yen (increase from the full-year operating profit forecast announced in May)Wording
Conditional
How definitive the wording is.Contents of this document
Earnings presentationSecond quarter of fiscal 2026 (first half)10 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥67,726 billion+19.0%
Operating profit¥7,061 billion+324.0%
Net income¥5,119 billion+690.0%
Full-year earnings forecast
Net Sales
¥138,600 billion
Operating profit
¥9,100 billion
Pretax profit
¥8,900 billion
Profit attributable to owners of the parent
¥6,150 billion
Operating profit excluding inventory effects
¥7,700 billion
Profit attributable to owners of the parent excluding inventory effects
¥5,150 billion
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Petroleum products and other products (first half)
One-off gains and losses-767
Volume impact-239
Time lag742
Margins, expenses and other1,637
Oil and natural gas exploration and production (first half)
Volume impact-57
Impact of resource prices177
Foreign exchange, expenses and other factors282
Functional materials (first half)
Volume impact-4
Margins, expenses and other84
Electricity (first half)
Volume impact-22
Margins, expenses and other-46
Renewable energy (first half)
Power Generation Business-19
Selling, general and administrative expenses4
Impairment loss-1,110
Other (first half)
Additional gain on the sale of JX Metals shares833
JX Advanced Metals250
NIPPO-66
Consolidation adjustments and other factors857
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Exchange rate
¥157 /US$
Dubai crude oil
95 dollars/barrel
White product sales volume
4,100 10,000 kiloliters
Oil-equivalent sales volume
86 thousand barrels/day
Brent crude oil
96 dollars/barrel
Elastomer sales index
109 %
New initiatives
- Making NIPPO a wholly owned subsidiary (share acquisition scheduled for completion by November 2026)
- Participation in the construction project for the Sodegaura Thermal Power Plant promoted by JERA
- Group company reorganization and reduction of the effective number of companies by approximately 100
- Company-wide rollout of AI utilization
- Review of the investment policy for renewable energy
Key KPIsA metric the company considers important as a management benchmark.
- Dubai crude oil price (first half)95 dollars/barrelYear on year against the same period last year+38.0%
- Foreign exchange rate (first half)¥159 /US$Year on year against the same period last year+9.0%
- Refinery operating rate excluding scheduled maintenance (FY2026 Q2)87 %
- Percentage of unplanned refinery shutdowns (FY2026 Q2)2 %
- Elastomer sales index (first half)107 %
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Gas and crude oil sales volume (first half)
Total
83 thousand barrels/day
Gas
64 thousand barrels/day
Crude oil
20 thousand barrels/day
White-product sales volume (first half)
1,927 10,000 kiloliters
Segment results
Operating income excluding inventory effects
¥4,438 billion+62.0%
Petroleum products and other
¥3,110 billion+79.0%
Oil and natural gas development
¥719 billion+127.0%
Functional materials
¥174 billion+85.0%
Electricity
¥119 billion-36.0%
Renewable Energy
¥-1,114 billion
Other
¥1,430 billion+268.0%
JX Metals (equity-method investment gain/loss)
¥430 billion+139.0%
NIPPO
¥116 billion-36.0%
Medium-term management plan targets
Actual company-wide cost reduction
Target valueReduction of approximately 100 companies
Target fiscal yearCumulative, including FY2027 onward
Total payout ratio
Target valueAt least 50% of profit for the period excluding inventory effects, averaged over 3 years
Target fiscal yearDuring the Fourth Medium-Term Management Plan period
Financial targets
Net debt-to-equity ratio
Actual as of the end of September 20260.42
End-March 2027 outlook0.35
Capital expenditures
2,261 Billion yen capital investment and investments/loans
Annual Dividend
Annual
38 yen per share
Interim
19 yen per share
End of period
19 yen per share
| Item | Details |
|---|---|
| Document type | Earnings presentation |
| Fiscal Period Covered | Second quarter of fiscal 2026 (first half) |
| Net Sales | ¥67,726 billion (YoY +19.0%) |
| Operating profit | ¥7,061 billion (YoY +324.0%) |
| Net income | ¥5,119 billion (YoY +690.0%) |
| Full-year earnings forecast | Net Sales ¥138,600 billion / Operating profit ¥9,100 billion / Pretax profit ¥8,900 billion / Profit attributable to owners of the parent ¥6,150 billion / Operating profit excluding inventory effects ¥7,700 billion / Profit attributable to owners of the parent excluding inventory effects ¥5,150 billion |
| Segment results | Operating income excluding inventory effects ¥4,438 billion (YoY +62.0%) / Petroleum products and other ¥3,110 billion (YoY +79.0%) / Oil and natural gas development ¥719 billion (YoY +127.0%) / Functional materials ¥174 billion (YoY +85.0%) / Electricity ¥119 billion (YoY -36.0%) / Renewable Energy ¥-1,114 billion / Other ¥1,430 billion (YoY +268.0%) / JX Metals (equity-method investment gain/loss) ¥430 billion (YoY +139.0%) / NIPPO ¥116 billion (YoY -36.0%) |
| Breakdown of Factors Affecting the Change | Petroleum products and other products (first half) One-off gains and losses -767 / Volume impact -239 / Time lag 742 / Margins, expenses and other 1,637 / Oil and natural gas exploration and production (first half) Volume impact -57 / Impact of resource prices 177 / Foreign exchange, expenses and other factors 282 / Functional materials (first half) Volume impact -4 / Margins, expenses and other 84 / Electricity (first half) Volume impact -22 / Margins, expenses and other -46 / Renewable energy (first half) Power Generation Business -19 / Selling, general and administrative expenses 4 / Impairment loss -1,110 / Other (first half) Additional gain on the sale of JX Metals shares 833 / JX Advanced Metals 250 / NIPPO -66 / Consolidation adjustments and other factors 857 |
| Key KPIs | Indicator name Dubai crude oil price (first half) / Value 95 dollars/barrel / Year on year against the same period last year 38 dollars/barrel, Indicator name Foreign exchange rate (first half) / Value ¥159 /US$ / Year on year against the same period last year ¥9 /US$, Indicator name Refinery operating rate excluding scheduled maintenance (FY2026 Q2) / Value 87 % / Year on year against the same period last year Not disclosed, Indicator name Percentage of unplanned refinery shutdowns (FY2026 Q2) / Value 2 % / Year on year against the same period last year Not disclosed, Indicator name Elastomer sales index (first half) / Value 107 % / Year on year against the same period last year Not disclosed |
| Unit price and quantity metrics | Gas and crude oil sales volume (first half) Total 83 thousand barrels/day / Gas 64 thousand barrels/day / Crude oil 20 thousand barrels/day / White-product sales volume (first half) 1,927 10,000 kiloliters |
| Assumptions Underlying the Business Outlook | Exchange rate ¥157 /US$ / Dubai crude oil 95 dollars/barrel / White product sales volume 4,100 10,000 kiloliters / Oil-equivalent sales volume 86 thousand barrels/day / Brent crude oil 96 dollars/barrel / Elastomer sales index 109 % |
| Medium-term management plan targets | Actual company-wide cost reduction Target value Reduction of approximately 100 companies / Target fiscal year Cumulative, including FY2027 onward / Total payout ratio Target value At least 50% of profit for the period excluding inventory effects, averaged over 3 years / Target fiscal year During the Fourth Medium-Term Management Plan period |
| Financial targets | Net debt-to-equity ratio Actual as of the end of September 2026 0.42 / End-March 2027 outlook 0.35 |
| Annual Dividend | Annual 38 yen per share / Interim 19 yen per share / End of period 19 yen per share |
| Capital expenditures | 2,261 Billion yen (capital investment and investments/loans) |
| New initiatives | Making NIPPO a wholly owned subsidiary (share acquisition scheduled for completion by November 2026), Participation in the construction project for the Sodegaura Thermal Power Plant promoted by JERA, Group company reorganization and reduction of the effective number of companies by approximately 100, Company-wide rollout of AI utilization, Review of the investment policy for renewable energy |
Items this document does not state (15)
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 stores and locationsNumber of employeesRisk amount incorporated into the outlookPayout ratioAcquisition of treasury sharesOrders received and order backlogMarket Size / ShareKey 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 main factors behind the increase in first-half profit were diversification of crude oil procurement, improved refinery operations through fewer refinery disruptions, increased opportunities to export petroleum products amid favorable market conditions, and additional gains on the sale of JX Metals shares. The upward revision to the full-year forecast is primarily attributable to higher oil and gas prices, improved export profitability for petroleum products by capitalizing on overseas market conditions, and profit contributions from the U.S. C4 materials business acquired through M&A.
How to read this page
This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
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