Tokyo Gas (9531) Q1 2025 earnings summary

Executive summary

• FY2024 1Q net sales declined 9.7% YoY to ¥586.9 billion, mainly due to lower city gas unit prices from resource cost adjustments.

• Operating profit dropped 73.2% YoY to ¥24.9 billion; profit attributable to owners was ¥19.9 billion, down 74.4%.

• Extraordinary gains included ¥2.0 billion in compensation for damages.

• Comprehensive income decreased 7.5% YoY to ¥98.5 billion.

• The company maintains its full-year profit forecast, expecting cost reductions to offset low gas prices and North American shale business impacts.

Financial highlights

• 1Q net sales: ¥586.9 billion (-9.7% YoY); operating profit: ¥24.9 billion (-73.2% YoY); ordinary profit: ¥27.0 billion (-74.8% YoY).

• Profit attributable to owners: ¥19.9 billion (-74.4% YoY); EPS: 50.17 yen (vs 180.91 yen YoY).

• Adjusted ordinary profit: ¥18.1 billion (-70.5% YoY).

• Gross profit for Q1 FY2024 was ¥91.4 billion, down from ¥151.8 billion YoY.

• City gas sales volume: 2,428 million m³ (-1.5% YoY); electricity sales volume: 5,002 million kWh (-5.0% YoY).

Outlook and guidance

• FY2024 full-year profit attributable to owners forecast at ¥81.0 billion, up ¥1.0 billion from previous guidance but down ¥88.9 billion YoY.

• Net sales forecast: ¥2,638.0 billion (-1.0% YoY); operating profit: ¥113.0 billion (-48.7% YoY).

• Segment profit forecast: ¥120.8 billion (-45.9% YoY); ordinary profit: ¥111.0 billion (-51.4% YoY).

• City gas sales volume expected to rise 1.1% YoY; electricity sales volume to fall 5.6% YoY.

• Dividend forecast for FY2024 is unchanged at 70.00 yen per share.