Cosmo Energy Holdings (5021) investor relations material

Executive summary

• Q1 ordinary profit was ¥133.0B; excluding inventory valuation effects, it was ¥122.1B, supported by positive time-lag effects and strong overseas product prices.

• Stable domestic supply was maintained amid heightened Middle East tensions through national reserves and diversified procurement.

• Petroleum and Petrochemical profits rose sharply year over year, while Oil E&P profit declined amid lower production.

Financial highlights

• Net sales were ¥761.6B, up ¥113.1B YoY; operating profit was ¥126.9B, up ¥118.9B, and ordinary profit was ¥133.0B, up ¥128.8B.

• Profit attributable to owners was ¥84.0B, versus a ¥2.0B loss YoY; excluding inventory valuation effects, profit was ¥76.3B, up ¥66.5B.

• Gross profit was ¥171.6B, compared with ¥52.5B a year earlier; comprehensive income was ¥90.4B, versus a ¥1.4B loss.

• Total assets were ¥2,551.5B, mainly reflecting higher inventories; net assets were ¥810.0B and net worth was ¥676.9B.

• Net income per share was ¥529.05, reflecting a 2-for-1 share split.

Outlook and guidance

• FY2026 forecast remains unchanged: net sales ¥2,870.0B, operating profit ¥102.0B, ordinary profit ¥115.0B and profit attributable to owners ¥44.0B.

• Full-year ordinary profit excluding inventory valuation is forecast at ¥110.0B; the dividend forecast is ¥165 per share, adjusted for the share split.

• Positive Q1 time-lag effects are expected to diminish and may turn negative from Q2 as crude procured after tensions escalated is received.

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