Osaka Gas (9532) investor relations material

Executive summary

• Ordinary profit and profit attributable to owners increased year-over-year when excluding time-lag effects, driven by improved competitiveness of long-term LNG contracts relative to JLC.

• Including time-lag effects, ordinary profit decreased by 9.0 billion yen due to higher crude oil prices and Middle East tensions.

• Net sales for the three months ended June 30, 2026, were ¥478.0 billion, up 1.5% year-over-year, while ordinary profit fell 15.3% to ¥50.2 billion and profit attributable to owners of parent dropped 26.5% to ¥35.6 billion, mainly due to a time lag in reflecting raw material cost fluctuations in selling prices.

• Comprehensive income rebounded to ¥66.5 billion from a loss of ¥29.3 billion in the prior year, driven by improved other comprehensive income items.

• Full-year forecasts were revised upward for ordinary profit (excluding time-lag) and profit attributable to owners, reflecting recent business performance.

Financial highlights

• Q1 net sales: 478.0 billion yen, up 1.5% year-over-year.

• Q1 ordinary profit: 50.2 billion yen (down 15.3% YoY); excluding time-lag, 57.9 billion yen (up 28.1% YoY).

• Q1 profit attributable to owners: 35.6 billion yen (down 26.5% YoY); excluding time-lag, 41.1 billion yen (up 7.3% YoY).

• Q1 EBITDA: 78.4 billion yen (down 14.0% YoY); excluding time-lag, 86.2 billion yen (up 11.6% YoY).

• Full-year net sales forecast: 2,170.0 billion yen (up 6.9% YoY).

• Full-year ordinary profit forecast: 190.0 billion yen (down 7.1% YoY); excluding time-lag, 197.0 billion yen (up 0.8% YoY).

• Operating profit for the quarter was ¥31.3 billion, down 34.3% year-over-year.

• Earnings per share for the quarter were ¥93.38, compared to ¥122.59 in the prior year.

• Total assets increased to ¥3,485.4 billion as of June 30, 2026, up from ¥3,321.4 billion at March 31, 2026.

Outlook and guidance

• Full-year net sales forecast revised upward to ¥2,170.0 billion (+6.9% year-over-year), mainly due to higher city gas selling prices.

• Full-year ordinary profit (excluding time-lag) revised up by 14.0 billion yen to 197.0 billion yen.

• Operating profit, ordinary profit, and profit attributable to owners of parent are forecast at ¥150.0 billion, ¥190.0 billion, and ¥145.0 billion, respectively, unchanged from previous guidance.

• ROIC and ROE expected to reach 5.5% and 8.2%, meeting Medium-Term Management Plan targets.

• Assumptions revised: crude oil price $80/bbl, exchange rate 160 yen/$.

• Annual dividend planned at 130 yen/share (up 10 yen YoY); share buyback up to 80.0 billion yen.

• Earnings per share for the year forecast at ¥380.73.