Consolidated Financial Results for the Fiscal Year Ended March 31 2026 (Under Japanese GAAP) ( 220KB )

FY2025 Financial Results( 1,568KB )

FY2025 Financial Results briefing (Q&A session)( 65KB )

During the fiscal year under review, the Japanese economy recovered moderately, with signs of recovery in personal consumption and capital investment. On the other hand, in addition to the continued weak yen and rising resource prices, there are concerns about geopolitical risks such as surging crude oil prices and supply shortages due to the prolonged situation in Iran, and the outlook remains uncertain.
In the business environment surrounding our group, although demand for aviation fuel remained strong, mainly for international flights, due to an increase in the number of foreign visitors to Japan, the market conditions for domestic petroleum products remained unstable due to the commencement of measures by the government to reduce the price of fuel oil on a straight-line basis and the abolition of the provisional tax rates for gasoline and diesel fuel taxes.
Our group entered the second stage of our mid-term business plan "Challenge 2030 for Challenging the Future," and has been moving forward with various initiatives, positioning the period from fiscal year 2024 to fiscal year 2026 as a period to steadily implement business strategies and accelerate growth-oriented investments.
In the fiscal year under review, our group's net sales decreased 6.5% year-on-year to 611,570 million yen due to a decline in sales volume of petroleum products. Operating profit increased 4.6% year-on-year to 12,356 million yen due to the revision of the unit price for aviation fuel handling fees in the Aviation-related Business. Ordinary profit increased 4.5% year-on-year to 13,442 million yen, and profit attributable to owners of the parent increased 6.2% year-on-year to 9,196 million yen.

Segment results are as follows.

In the Petroleum-related business, while gasoline sales volume remained firm, kerosene, diesel fuel, heavy oil and other oil types trended downward, and overall petroleum products were down year-on-year. The situation by division is as follows.
In the petroleum retail division, although gasoline sales volume remained at the same level as the previous fiscal year, profit margins declined due to price competition, and profits were lower than the previous fiscal year. In the petroleum wholesale division, as expectations of lower prices spread in the petroleum market due to subsidy payments and the abolition of provisional tax rates for gasoline and diesel fuel taxes, the profitability of some transactions of Kygnus Sekiyu K.K. deteriorated, and profits were significantly lower than the previous fiscal year. In the Industrial fuel oil sales division, although sales volume was lower than the previous fiscal year, profits exceeded the previous fiscal year due to improved profit margins. In the Industrial lubricants sales division, although orders for gas engine maintenance for power generation and endoscopy inspections for wind power recovered in the second half, profits were lower than the previous fiscal year.

Consequently, net sales in the Petroleum-related business decreased 7.8% year-on-year to 516,413 million yen, and segment profit decreased 23.1% year-on-year to 5,670 million yen.

In the Chemical Products-related Business, sales volume for all products remained largely unchanged from the previous fiscal year. Profit margins improved because of supply chain optimization, such as purchasing and inventory management. The situation by product is as follows.
In automotive-related products, both sales volume and profits of car wash products, the company's own products, exceeded the previous fiscal year. In biocide products, sales volume exceeded the previous fiscal year, but profits declined from the previous fiscal year. Sales volume and profits for petroleum-based solvents both remained at the same level as the previous fiscal year. In tackifier, sales volume and profits both declined from the previous fiscal year. Performance chemicals remained at the same level as the previous fiscal year.

Consequently, net sales in the Chemical Products-related business increased by 0.8% year-on-year to 12,775 million yen, and segment profit decreased by 1.6% year-on-year to 1,126 million yen.

In LPG sales business, sales volume remained at the same level as the previous fiscal year, amid a general downward trend in demand due to the extremely hot summer and other factors. The status of each division is as follows.
In the retail division, although unit consumption declined, mainly in household use, profits rose from the previous fiscal year due to an increase in basic fee revenue resulting from an increase in retail customer numbers. In the wholesale business, profits decreased year-on-year due to the impact of inventory valuations.
In December 2025, the Company acquired all shares of Smart Solution Co., Ltd., a holding company of KUMAMOTO SEKIYU Co., Ltd., which engages in retail sales of LP gas and SS management in Kumamoto City, Kumamoto Prefecture and both companies joined consolidated subsidiaries. In addition, in March 2026, the two companies merged with KUMAMOTO SEKIYU Co., Ltd. as the surviving company.

In the natural gas sales business, sales volume in household use exceeded the previous fiscal year due to the participation of Imari Gas Co., Ltd. in our group. In the commercial and industrial sectors, although sales volume remained at the same level as the previous period, profits exceeded those of the previous period, partly due to sales of energy-efficient equipment.

Consequently, net sales in the Gas-related business decreased by 4.6% year-on-year to 58,468 million yen due to a decline in LP gas sales prices. Segment profit increased by 8.7% year-on-year to 2,295 million yen due to improved profit margins in LP gas sales business.

In the Aviation-related business, air travel demand was strong, mainly on international flights, due to an increase in foreign visitors to Japan and so on.
The volume of fuel handled at Haneda Airport on domestic flights recovered in summer demand, but was sluggish in the second half and slightly below the previous fiscal year. On international flights, demand was strong due to increased flights and new routes in line with inbound demand. As a result, the combined volume of fuel handled on domestic and international flights increased by about 2% year-on-year.

Consequently, net sales in the Aviation-related business increased by 16.1% year-on-year to 16,748 million yen due to revised unit prices for aviation fuel handling fees and increased aviation fuel handling volume, and segment profit increased by 55.7% year-on-year to 5,712 million yen.

In the Other businesses segment, in the Clean Tech Business, which handles cleaning and surface treatment of metal products and other products, there was a delay in demand recovery for precision cleaning treatment for semiconductor manufacturing equipment, but both sales and profits remained at the same level as the previous fiscal year. In the construction industry, orders remained solid, and sales and profits exceeded the previous fiscal year.

Consequently, net sales in the Other businesses increased by 24.7% year-on-year to 7,166 million yen due to increased orders in the construction industry, and segment profit increased by 36.1% year-on-year to 1,176 million yen.