* The information on this page is based on the presentation material for Fiscal 2025 Results (announced on 12th, May 2026).
FY2025 Results
In FY2025, consolidated ordinary profit excluding the impact of inventory valuation was ¥165.7 billion, and profit attributable to owners of parent excluding the impact of inventory valuation was ¥85.5 billion.
By segment, Petroleum Business ordinary profit excluding the impact of inventory valuation was ¥92.8 billion, up ¥0.2 billion year on year. Although costs increased due to inflation and greater imports to maintain a stable supply, the increase was offset by a positive time-lag effect associated with higher crude oil prices. The Petrochemical Business remained in the red amid weak market conditions, but the loss narrowed due to the restructuring of the basic chemicals business and increased sales of specialty chemicals. Ordinary loss improved by ¥1.9 billion year on year to ¥3.1 billion. In the Oil E&P Business, production volume increased as a result of initiatives to raise output at the Hail Oil Field; however, changes in the business environment led to ordinary profit of ¥65.3 billion, down ¥17.1 billion year on year. In the Renewable Energy Business, ordinary profit increased by ¥1.5 billion year on year to ¥2.8 billion, driven by the commencement of operations at new sites and other factors.
On the consolidated balance sheet, total assets increased by ¥40.0 billion from the end of the previous fiscal year to ¥2,196.6 billion, while total net assets increased by ¥28.3 billion to ¥735.8 billion. Net worth increased by ¥21.4 billion to ¥606.2 billion, and the net worth ratio improved by 0.5 percentage points to 27.6%. Net interest-bearing debt decreased by ¥62.1 billion to ¥430.9 billion, and the net debt-to-equity ratio improved by 0.13 points to 0.71 times.
On the consolidated statements of cash flows, net cash provided by operating activities was ¥213.7 billion, mainly reflecting profit before income taxes and an increase in working capital. Net cash used in investing activities was ¥84.7 billion, primarily due to purchases of property, plant and equipment. As a result, free cash flow was positive ¥129.0 billion. Net cash used in financing activities was ¥81.9 billion, mainly due to repayments of borrowings and shareholder returns.
FY2026 Forecast
The FY2026 forecast incorporates a conservative estimate of the potential impact on earnings, taking into account uncertainties surrounding the situation in the Middle East and market conditions. It is based on the timing of normalization and market conditions currently assumed. We will continue to closely monitor developments and revise the forecast as appropriate if there are material changes to the underlying assumptions. Under the current scenario, the situation in the Middle East is expected to stabilize by the end of Q1. Following a certain adjustment period, crude oil production is expected to normalize in August and crude oil procurement from September onward.
For FY2026, consolidated ordinary profit excluding the impact of inventory valuation is forecast at ¥110.0 billion, and profit attributable to owners of parent excluding the impact of inventory valuation is forecast at ¥40.0 billion. The breakdown of the ¥110.0 billion in ordinary profit excluding the impact of inventory valuation by segment is as follows.
In the Petroleum Business, profit is expected to decrease, primarily due to a negative time-lag effect. Although domestic market conditions are assumed conservatively, ordinary profit excluding the impact of inventory valuation is forecast at ¥56.0 billion, reflecting efforts to pass higher costs on to selling prices. In the Petrochemical Business, overseas market conditions are expected to remain weak; however, earnings are expected to improve due to lower export volume, resulting in forecast ordinary profit of ¥1.0 billion. In the Oil E&P Business, high crude oil prices are expected to provide support, while production constraints associated with the closure of the Strait of Hormuz are expected to reduce sales volume. Ordinary profit is therefore forecast at ¥38.0 billion.
In the Renewable Energy Business, ordinary profit is forecast at ¥3.0 billion. The forecast incorporates the impact of inflation while assuming stable earnings, primarily from onshore wind power generation.
Key consolidated balance sheet indicators are forecast as follows: net worth of ¥623.0 billion, a net worth ratio of 26.7%, and a net debt-to-equity ratio of 0.88 times. For consolidated cash flows, net cash provided by operating activities is forecast at ¥96.0 billion, net cash used in investing activities at ¥198.0 billion, and free cash flow at negative ¥102.0 billion.
In Closing
Under the 7th Medium-Term Management Plan, we steadily implemented the initiatives set out as our objectives. In the Oil fields, these included strengthening DX to maximize refinery uptime, commencing increased production at the Hail Oil Field, and restructuring the basic chemicals business. In the New fields, we strategically refrained from participating in offshore wind tenders in response to changes in the business environment, while advancing growth initiatives such as commencing Japan's first domestic mass production of SAF, building a green power supply chain, and expanding earnings from specialty chemicals. Uncertainty remains high amid continued tensions in the Middle East. Nevertheless, the entire Group will continue working together to enhance enterprise value.