Cosmo Energy Holdings (5021) investor relations material

Executive summary

• Ordinary profit for FY2026 Q1 reached ¥133.0 billion, with profit attributable to owners of parent at ¥84.0 billion, reversing a prior-year loss, both benefiting from a positive time-lag effect and high overseas market prices for non-core products.

• Net sales for Q1 FY2026 reached ¥761.6 billion, up 17.4% year-over-year, with operating profit at ¥126.9 billion, both showing significant increases from the prior year.

• Comprehensive income for Q1 FY2026 was ¥90.4 billion, compared to a loss of ¥1.4 billion in Q1 FY2025.

• Stable supply was maintained in the Petroleum Business despite heightened Middle East tensions, leveraging national reserves and alternative procurement.

• Segment profits rose significantly year-over-year, especially in Petroleum and Petrochemical, while Oil E&P saw a decline due to production impacts.

Financial highlights

• Net sales increased to ¥761.6 billion, up ¥113.1 billion year-over-year.

• Operating profit surged to ¥126.9 billion from ¥8.0 billion in the prior year.

• Gross profit rose to ¥171.6 billion from ¥52.5 billion year-over-year.

• Net assets increased to ¥810.0 billion, with a net worth ratio of 26.5%.

• Total assets grew to ¥2,551.5 billion, mainly due to higher inventories.

Outlook and guidance

• Full-year FY2026 forecast remains unchanged: net sales of ¥2,870.0 billion (+7.2%), operating profit of ¥102.0 billion (-40.6%), ordinary profit of ¥115.0 billion (-29.6%), and profit attributable to owners of ¥44.0 billion (-22.9%).

• Ordinary profit excluding inventory valuation at ¥110.0 billion.

• Positive Q1 time-lag effects are expected to reverse in Q2, leading to lower profits.

• Petroleum and Oil E&P profits are projected to decline year-over-year, while Petrochemical and Renewable Energy are expected to improve.

• Dividend per share forecast is ¥165, unchanged post-share split.