Idemitsu Kosan Co. (5019) Q2 2025 earnings summary

Executive summary

• Net sales for the six months ended September 30, 2024 rose 11.9% year-over-year to ¥4,504.0B, driven by higher sales prices in petroleum due to yen depreciation.

• Operating and equity income fell ¥97.8B year-over-year, mainly due to lower export margins, reversal of prior inventory impacts, and a decline in coal prices.

• Net income attributable to owners dropped 39.7% year-over-year to ¥99.4B, but steady domestic margins supported progress toward full-year forecasts.

• Dividend for FY2024 raised to ¥36/share, reflecting increased earning power and set as minimum for the medium-term plan period.

• Extraordinary income increased significantly due to gains on sales of tangible fixed assets.

Financial highlights

• Net sales rose 11.9% year-over-year to ¥4,504.0B; operating income dropped 52% to ¥97.3B.

• Equity income nearly doubled to ¥16.1B; ordinary income fell 44.9% to ¥124.9B.

• Excluding inventory impact, operating + equity income was ¥114.0B, down 41.4% year-over-year.

• Gross profit for the period was ¥345.9B, down from ¥440.8B a year earlier.

• Cash and cash equivalents at period end: ¥29.9B, down from ¥147.5B at start.

Outlook and guidance

• Full-year forecasts for FY2024 remain unchanged despite recent crude oil price declines.

• Net sales for FY2024 projected at ¥8,700.0B, operating income at ¥169.0B, and net income at ¥125.0B.

• Dividend forecast for FY2024 is ¥36.00 per share.

• Sensitivity analysis: ±$10/bbl crude oil price impacts operating profit by ±¥26.0B; ±¥5/USD exchange rate impacts by ±¥19.0B.