At its earnings briefing for the first half of 2026, SHIZUOKA GAS reported that city gas sales volume increased from the previous period, revenue was ¥103 billion, and adjusted ordinary profit was ¥13.1 billion. The company indicated that it expects to raise its annual dividend to ¥45, comprising an interim dividend of ¥22 and a year-end dividend of ¥23.
City gas sales volume increased from the previous period, driven mainly by direct sales, while statistical sales volume rose by 7 million cubic meters to 850 million cubic meters. Revenue was ¥103 billion, down ¥500 million from the previous period, while adjusted ordinary profit rose by ¥4.3 billion to ¥13.1 billion. By contrast, ordinary profit before adjustments, reported as consolidated ordinary profit for accounting purposes, was ¥9.8 billion. The company expects to raise its annual dividend by ¥1 from the initial forecast of ¥44 to ¥45, with DOE at 2.63% and the payout ratio at 37.2%.
In its analysis of ordinary profit, the company cited the impact of crude oil prices as a factor affecting raw material costs and other items. It explained that crude oil prices were approximately $10 per barrel lower than in the previous year, contributing to lower LNG procurement costs in the first half of 2026. Other factors cited included the receipt of half a cargo in the second half of 2025 and the remaining half cargo in the first half of 2026, foreign exchange gains and losses other than those related to anonymous partnership investments, which resulted in a ¥500 million gain, and a ¥500 million profit contribution from affiliates and other businesses through initiatives in the electricity and renewable energy businesses and the North American business. Gross profit was negative due to a decline in sales volume in small-lot direct sales.
In the first half of 2026, the company spent ¥12 billion on capital allocation for investments, funded by operating cash flow and a drawdown of cash and deposits on hand. Of the $100 million investment in MidOcean Energy, payment of ¥10 billion was completed in July 2026, and payment of the remaining ¥6 billion is also expected to be completed by year-end. The company intends to maintain its initial full-year plan and indicated that it expects adjusted ordinary profit to significantly exceed its forecast.
Regarding shareholder returns, the company expects an interim dividend of ¥22 and a year-end dividend of ¥23, for a full-year dividend of ¥45. The positive impact of investment progress and the outlook for the final results were cited as reasons for increasing the interim dividend by ¥1. The company also indicated that it may bring forward a portion of the upside in adjusted ordinary profit to the next fiscal year and allocate it to shareholder returns. As part of the SHIZUOKA GAS Group's growth story, the company introduced initiatives including expansion of its value chain from upstream to downstream, expansion of lifestyle services and engineering based on actual demand, and strengthening its ability to secure talent through M&A in overseas businesses.