Idemitsu Kosan Co. (5019) investor relations material

Executive summary

• Achieved significant year-over-year growth in revenue and profitability in 1Q FY2026, driven by positive time-lag effects, strong overseas trading, and higher crude prices.

• Strategic focus on sustainable growth through strengthening existing businesses, expanding into electrification/ICT, and advancing low-carbon initiatives.

• Maintained stable refinery operations and utilization rates despite Middle East supply disruptions, with alternative procurement and cost pass-through to product prices.

• Transitioned to IFRS from Japanese GAAP, restating prior period figures for comparability.

Financial highlights

• Revenue rose 23.8% year-over-year to ¥2,271.8 billion in 1Q FY2026.

• Operating income surged to ¥307.5 billion from a loss of ¥4.0 billion in 1Q FY2025.

• Net income attributable to owners of the parent grew by ¥190.2 billion to ¥217.5 billion, a 696.0% year-over-year increase.

• Basic earnings per share increased to ¥179.63 from ¥22.31 year-over-year.

• Total assets as of June 30, 2026 were ¥6,057.0 billion, up ¥787.7 billion from March 31, 2026.

Outlook and guidance

• Earnings forecast for FY2026 remains unchanged due to uncertainty in crude oil prices and time-lag impacts.

• FY2027 forecast: income before tax (excluding financial expenses and inventory impact) ¥140.0 billion, income attributable to owners of the parent (excluding inventory impact) ¥90.0 billion, and basic EPS ¥62.00.

• Negative time-lag impact expected from 2Q onward if crude oil prices decline as forecasted.

• Sales and production volume forecasts for petroleum, chemicals, and resources segments provided, with stable or modest growth expected.

• No change in previously announced forecasts for FY2027.