Osaka Gas (9532) Q1 2025 earnings summary

Executive summary

• Net sales and profits declined year-over-year in 1Q FY2025.3, mainly due to lower gas selling prices and reduced time-lag profit in the Domestic Energy segment.

• Ordinary profit fell by ¥38.9 billion and profit attributable to owners of parent dropped by ¥29.7 billion compared to 1Q FY2024.3.

• Operating profit dropped 61.0% year-over-year to ¥28.7 billion, and ordinary profit fell 47.2% to ¥43.6 billion, reflecting a reduced positive impact from the time lag in raw material cost adjustments.

• FY2025.3 full-year forecasts remain unchanged, with expected decreases in net sales and profits due to the absence of prior year temporary gains and lower time-lag profit.

• Comprehensive income increased 10.0% year-over-year to ¥99.3 billion, driven by gains in other comprehensive income.

Financial highlights

• 1Q FY2025.3 net sales: ¥470.9 billion (down ¥41.6 billion, -8.1% YoY); operating profit: ¥28.7 billion (down ¥44.9 billion, -61.0% YoY); ordinary profit: ¥43.6 billion (down ¥38.9 billion, -47.2% YoY).

• Profit attributable to owners of parent: ¥30.7 billion (down ¥29.7 billion, -49.2% YoY); EPS: ¥75.5 (down ¥70.2, -48.2% YoY).

• EBITDA: ¥68.3 billion (down ¥38.3 billion, -35.9% YoY); free cash flow: -¥73.2 billion (down ¥130.9 billion YoY).

• Total assets at 1Q end: ¥3,214.3 billion (up ¥234.1 billion from FY2024.3 year-end); shareholders' equity: ¥1,645.1 billion.

• Gross profit for Q1 FY2025 was ¥84.2 billion, down from ¥127.4 billion in the prior year.

Outlook and guidance

• FY2025.3 net sales forecast: ¥1,986.0 billion (down ¥97.0 billion, -4.7% YoY); ordinary profit: ¥153.0 billion (down ¥73.5 billion, -32.5% YoY).

• Profit attributable to owners of parent forecast: ¥112.0 billion (down ¥20.6 billion, -15.6% YoY); EPS forecast: ¥273.9.

• Annual dividend forecast: ¥95.0 per share (up ¥12.5 YoY).

• Free cash flow for FY2025.3 forecasted at -¥57.0 billion.

• Operating profit forecast for FY2025.3: ¥123.5 billion (down 28.4% YoY).