Cosmo Energy Holdings (5021) Q2 2026 earnings summary

Executive summary

• 2Q FY2025 ordinary profit was ¥53.2bn, or ¥72.9bn excluding a ¥19.7bn inventory valuation impact; profit attributable to owners was ¥23.6bn, or ¥37.4bn excluding inventory valuation.

• First-half net sales rose 1.0% YoY to ¥1,333.8bn and operating profit increased 46.2% to ¥60.3bn; profit attributable to owners rose 14.5% to ¥23.6bn.

• FY2025 earnings forecast remained unchanged, with ordinary profit forecast at ¥121.0bn and ¥165.0bn excluding inventory valuation.

Financial highlights

• Net sales were ¥1,333.8bn, up ¥12.7bn YoY; operating profit was ¥60.3bn, up ¥19.1bn, and ordinary profit was ¥53.2bn.

• Operating cash flow was ¥120.4bn, investing cash flow -¥23.7bn, free cash flow ¥96.7bn, and financing cash flow -¥71.1bn.

• Capital expenditure was ¥41.3bn, down ¥3.1bn YoY; depreciation expense was ¥28.8bn, up ¥0.8bn YoY.

• Total assets were ¥2,114.9bn, down ¥41.7bn from the prior year-end; net worth was ¥590.4bn, up ¥5.6bn, and the net worth ratio was 27.9%.

• Net debt to equity ratio improved to 0.75x.

Outlook and guidance

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

• Hail Oil Field production ramp-up is expected to contribute to FY2025 earnings.

• FY2025 interim dividend is ¥150/share and year-end dividend is ¥90/share post-split, equivalent to ¥180/share pre-split.

• Cumulative total payout ratio target is at least 60% over the three-year midterm plan; FY2025 shareholder returns are forecast at ¥27.3bn.