K&O Energy Group raises its full-year forecast on higher gas and iodine selling prices; dividend increase and stronger shareholder returns following a partial change to its dividend policy

K&Oエナジーグループ revised its earnings outlook for full-year 2026, with revenue expected to exceed the previous forecast. Although interim results fluctuated year on year, full-year revenue is expected to be ¥99.9 billion, operating income ¥9.6 billion, ordinary income ¥10.9 billion and net income attributable to owners of the parent ¥6.8 billion, reflecting higher gas and iodine selling prices. As of the interim results, the dividend was set at ¥30 for the interim period and ¥29 for the year-end dividend, with the annual dividend expected to be ¥88 following the stock split.

In the interim results for 2026, gas business revenue was affected mainly by a decline in sales volumes through the prefectural gas network. Iodine business revenue increased 13% year on year to ¥8.326 billion, owing to higher sales volumes and foreign exchange factors. Although operating income in the gas business declined, segment profit in the iodine business increased, leaving overall operating income almost flat.

The company also announced the stock split and a partial change to its dividend policy. The stock split will be implemented on a 1-for-2 basis, and the company will transition to a new dividend policy targeting a dividend on equity (DOE) of approximately 3.0% while maintaining progressive dividends. In line with this, the company is also considering introducing a shareholder benefit program and other shareholder return measures.

As supplementary information, the company presented breakdowns of revenue, production volumes and capital investment for the gas business, iodine business and Other. In particular, the iodine business outlined an equipment repair plan for the second half, when some recovery in production volumes is expected, indicating preparations to increase production from the following fiscal year onward.