Cosmo Energy Holdings (5021) Q1 2026 earnings summary

Executive summary

• Q1 FY2025 ordinary profit was ¥4.2bn, including a negative ¥16.9bn inventory valuation impact; excluding inventory valuation, ordinary profit was ¥21.1bn.

• Profit attributable to owners of parent was a loss of ¥2.0bn, or ¥9.8bn excluding inventory valuation.

• FY2025 full-year earnings forecast remained unchanged.

Financial highlights

• Net sales were ¥648.5bn, down ¥6.6bn YoY; operating profit was ¥8.0bn, down ¥37.0bn YoY.

• Ordinary profit declined ¥48.9bn YoY to ¥4.2bn; profit attributable to owners of parent fell ¥26.7bn to a loss of ¥2.0bn.

• Gross profit was ¥52.5bn, down from ¥85.3bn in Q1 FY2024.

• Capital expenditure was ¥12.2bn, down ¥7.3bn YoY; depreciation was ¥14.2bn, up from ¥13.9bn.

• Total assets were ¥2,110.5bn; net worth was ¥562.9bn and the net worth ratio was 26.7%.

Outlook and guidance

• FY2025 forecast: net sales ¥2,580.0bn, operating profit ¥123.0bn, ordinary profit ¥121.0bn and parent-attributable profit ¥53.0bn; ordinary profit excluding inventory valuation forecast at ¥165.0bn.

• Petroleum profit expected to rise on higher domestic margins and improved refinery utilization; Oil E&P profit expected to decline on lower crude prices and FX effects.

• Water-injection gains at Hail Oil Field were evident in Q1, with higher production expected to contribute to full-year earnings.

• FY2025 is the final year of the 7th MTMP, with continued focus on increasing enterprise value.