Toho Gas Co (9533) Q2 2027 earnings summary

Executive summary

• H1 FY2026 net sales rose 0.7% YoY to ¥309,187 million, while operating income swung to a ¥358 million loss and ordinary income fell to ¥3,244 million, mainly reflecting gas cost-adjustment time lag.

• Net income attributable to owners of the parent declined 66.5% YoY to ¥6,779 million.

Financial highlights

• Gross profit fell to ¥65,362 million from ¥89,353 million as cost of sales increased to ¥243,824 million from ¥217,807 million.

• Extraordinary income was ¥3.9bn, including a ¥3.4bn gain on cross-shareholdings sales.

• Income before taxes was ¥7,188 million versus ¥28,118 million; net income was ¥6,825 million versus ¥20,236 million.

• Comprehensive income increased to ¥37,059 million from ¥27,157 million, including ¥30,686 million in gains on available-for-sale securities.

• Q2 crude oil CIF averaged $108.1/bbl versus $73.7/bbl YoY; the exchange rate averaged ¥159.5/$ versus ¥146.0/$.

Outlook and guidance

• FY2026 forecast: net sales ¥700,000 million, operating income ¥19,000 million, ordinary income ¥25,000 million and parent-attributable net income ¥28,000 million.

• Net income guidance rose ¥5.0bn from the prior forecast on expected additional extraordinary income from asset sales, including cross-shareholdings; operating and ordinary income forecasts were unchanged.

• Q3/Q4 assumptions: crude oil $115/bbl and ¥160/$; operating income sensitivity is -¥0.2bn per $1/bbl oil increase and -¥0.1bn per ¥1/$ increase.

• FY2026 forecast ROE is 5.7%, versus 6.8% in FY2025; forecast CAPEX is ¥87.0bn and depreciation ¥38.9bn.