IDEMITSU KOSAN CO., LTD. February 14, 2023
Consolidated Financial Results for the Third Quarter of
Fiscal Year 2022 (From April 1, 2022 to December 31, 2022) [Japan GAAP]
Company Name: Idemitsu Kosan Co.,Ltd. (URLhttps://www.idemitsu.com/en/index.html)
Company Code: 5019, Shares listed on: Tokyo Stock Exchange
Name of Representative: Shunichi Kito, Representative Director & Chief Executive Officer
Contact Person: Daisuke Mogi, General Manager, Investor Relations Office, Finance & Accounting Department
Telephone: +81-3-3213-9307
Scheduled date of filing of quarterly securities report: February 14, 2023
Scheduled date of commencement of dividend payments: －
Supplementary materials for the quarterly financial results: Yes
Quarterly financial results presentation: Yes (for institutional investors and analysts)
(Figures less than ¥1 million are rounded off)
1. Consolidated Financial Results for the Third Quarter of FY2022 (From April 1, 2022 to December 31, 2022)
(1) Consolidated operating results
(Percentage figures represent changes from the corresponding previous period)
Net income | ||||||||||
Net sales | Operating income | Ordinary income | attributable to owners | |||||||
of the parent | ||||||||||
¥million | % | ¥million | % | ¥million | % | ¥million | % | |||
3Q FY2022 | 7,211,294 | 55.2 | 298,866 | 7.1 | 336,849 | 11.2 | 249,629 | 24.9 | ||
3Q FY2021 | 4,647,185 | 44.7 | 279,040 | 465.5 | 302,969 | － | 199,928 | － |
Note: Comprehensive income | 3Q FY2022 | ¥ 288,996 million (43.1)% | 3Q FY2021 ¥201,953million (－)% | |||
Net income per share | Diluted net income | |||||
per share | ||||||
¥ | ¥ | |||||
3Q FY2022 | 839.58 | － | ||||
3Q FY2021 | 672.51 | － |
(2) Consolidated financial position
Total assets | Net assets | Equity ratio | |||||
¥million | ¥million | % | |||||
3Q FY2022 | 5,207,212 | 1,659,857 | 31.6 | ||||
FY2021 | 4,601,183 | 1,436,512 | 30.7 | ||||
Reference: Total equity | 3Q FY2022 | ¥1,643,671 million | FY2021 ¥1,412,101 million |
2. Dividends
Cash dividends per share | |||||||
As of Jun.30 | As of Sep.30 | As of Dec.31 | As of Mar.31 | Total | |||
¥ | ¥ | ¥ | ¥ | ¥ | |||
FY2021 | － | 60.00 | － | 110.00 | 170.00 | ||
FY2022 | － | 60.00 | － | ||||
FY2022 | 60.00 | 120.00 | |||||
(Forecasts) | |||||||
Note: Revisions of the forecasts of cash dividends since the latest announcement: None |
3. Forecasts of Consolidated Financial Results for FY2022 (From April 1, 2022 to March 31, 2023)
(Percentage | figures represent changes from the | previous | fiscal year) | |||||||||||
Net income | Net income | |||||||||||||
Net sales | Operating income | Ordinary income | attributable to | |||||||||||
per share | ||||||||||||||
owners of the parent | ||||||||||||||
¥million | % | ¥million | % | ¥million | % | ¥million | % | ¥ | ||||||
FY2022 | 9,100,000 | 36.1 | 255,000 | (41.3) | 285,000 | (37.9) | 220,000 | (21.3) | 739.92 |
Note: Revisions of the forecasts of consolidated financial results since the latest announcement: Yes
Note: The Company resolved to repurchase its own shares at the board of directors meeting held on February 14, 2023.
The impact of repurchase of own shares is not taken into account in regards to "Net income per share" in the forecasts of consolidated financial results for FY2022. Please refer to the "Announcement Regarding Acquisition of Treasury Shares and Cancellation of Treasury Shares" announced today for details.
* Notes
-
Changes of number of material consolidated subsidiaries during the nine months ended December 31, 2022: Yes
Newly consolidated companies: 1 (Seibu Oil Co., Ltd.) - Application of the accounting method peculiar to the preparation of the quarterly financial statements: Yes
- Changes in accounting policies, accounting estimates and restatement
- Changes in accounting policies arising from revision of accounting standards: Yes
- Changes arising from other factors: None
- Changes in accounting estimates: None
- Restatement: None
- Number of shares issued (common stock)
- Number of shares issued (including treasury stock)
As of December 31, 2022: | 297,864,718 | As of March 31, 2022: | 297,864,718 |
b) Number of shares of treasury stock | |||
As of December 31, 2022: | 506,370 | As of March 31, 2022: | 561,317 |
c) Weighted average number of shares outstanding during the period | |||
Nine months ended December 31, 2022: | 297,327,611 | ||
Nine months ended December 31, 2021: | 297,286,087 |
*1 This document is out of the scope of quarterly review by certified public accountants or audit firms.
*2 The financial forecasts above are based on information available and assumptions as of the date of publication of this document. Actual operating results may differ from the forecasts due to various factors. Additionally, for the assumptions used for the forecasts of the above, please refer to page 5 "Explanation of Forecasts of Consolidated Financial Results for FY2022" of the Appendix.
Contents of the Appendix
1. Qualitative Information on the Consolidated Operating Results for the Third Quarter of FY2022….…. 2
- Explanation of Operating Results.………………………………………………………………………………... 2
(2) Explanation of Financial Position………………………………………………………………………………… 5
- Explanation of Forecasts of Consolidated Financial Results for FY2022 …………………………………... 5
2. Consolidated Financial Statements for the Third Quarter of FY2022 and Major Notes……..……………. 6
- Consolidated Quarterly Balance Sheets ………………………………………………………………………….. 6
- Consolidated Quarterly Statements of Income and Comprehensive Income ………………………………….. 8
1) | Consolidated Quarterly Statements of Income ……………………………………………………………… 8 |
2) | Consolidated Quarterly Statements of Comprehensive Income …………………………………………… 9 |
- Notes to the Consolidated Quarterly Financial Statements………………………………………………….…. 10
- Notes on the Assumption of a Going Concern…………………………………………………………… 10
- Notes on Significant Changes in Shareholders' Equity…………………………………………………... 10
3) Application of the Accounting Method Peculiar to the Preparation of | ………………………………… 10 |
the Quarterly Financial Statements | |
4) Changes in Accounting Policies…………………………………………………………………..………… 10 |
- Consolidated Segment Information ……………………………………………………………………..…… 11
- Significant Subsequent Events……………………………………………………………………..………… 13
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1. Qualitative Information on the Consolidated Operating Results for the Third Quarter of FY2022
- Explanation of Operating Results
The overall domestic demand for main petroleum products during the nine months ended December 31, 2022, recovered for both primary fuels and aircraft due to the lifting of activity restrictions and increased economic activities in preparation for the post-COVID- 19 period.
Crude oil prices were on an upward trend with the market tightening after Russia's invasion of Ukraine and the recovery of demand after countries had eased their behavioral restrictions. Since the summer, prices have been on a downward trend with concerns about slowing growth of demand for oil due to the shrinkage of demand caused by concerns about an economic slowdown amid the global inflation and lockdowns and other measures that China has taken against the re-expansion of the COVID-19. As a result, the average Dubai crude oil price from April to December increased by $24.3/bbl from the same period last year to $96.6/bbl.
As for the dollar-to-yen exchange rate, Japan maintained its easy monetary policy against a series of rate hikes by the U.S., and the yen depreciated below the level of ¥150 to the dollar in October, before apprenticing above the ¥130 level into the year-end with the slowdown in the pace of interest rate hikes by the Fed and the decision by the Bank of Japan at its Monetary Policy Meeting in December to partially modify the management of its short- and long-term interest rates operations. As a result, the average exchange rate between April and December against the dollar was ¥136.5.
(Crude oil price, naphtha price and exchange rate)
Nine months ended | Nine months ended | Change | ||
December 31, 2021 | December 31, 2022 | |||
Dubai Crude Oil ($/bbl) | 72.3 | 96.6 | +24.3 | +33.6% |
Exchange Rate (¥/$) | 111.1 | 136.5 | +25.4 | +22.9% |
The Idemitsu Group's net sales for the nine months ended December 31, 2022 were
¥7,211.3 billion, up 55.2% year on year, mainly due to surging crude oil prices and the impact of the weaker yen.
Operating income was ¥298.9 billion, up 7.1% year on year, mainly due to the increase in coal prices in the resources segment, despite the negative effects of the time lags associated with the declining crude oil prices in the petroleum segment.
Net non-operating income was ¥38.0 billion, up 58.7% year on year, mainly due to the change of a Norwegian subsidiary to an equity method affiliate that affected equity in earnings of non-consolidated subsidiaries and affiliates and foreign exchange gains.
Consequently, ordinary income was ¥336.8 billion, up 11.2% year on year.
Net extraordinary income was ¥16.8 billion, up 362.4% year on year, mainly due to gains on the sale of fixed assets of domestic subsidiaries, while a loss from the step acquisition was incurred when the Company acquired additional shares of Seibu Oil Co., Ltd., which then became its consolidated subsidiary.
Income tax expenses, which consist of income taxes-current and income taxes-deferred, amounted to ¥106.3 billion, up 6.6% year on year, due to an increase in net income before
2
income taxes. Consequently, net income attributable to owners of the parent was ¥249.6 billion, up 24.9% year on year.
The performance of our business by segment for the nine months ended December 31,
2022 is as follows:
As to annual reporting periods, overseas subsidiaries use December 31 as their balance sheet date, whereas domestic subsidiaries use March 31 as their balance sheet date, except for certain subsidiaries. As such, the following performance of the business segments includes the operating results of overseas subsidiaries for the nine months ended September 30, 2022, and those of domestic subsidiaries for the nine months ended December 31, 2022.
Net sales by segment
(Unit: ¥Billion) | ||||||||
3rd Quarter of | 3rd Quarter of | Change | ||||||
FY2021 | FY2022 | Amount | % | |||||
Petroleum | 3,604.8 | 5,668.5 | +2,063.7 | +57.3 % | ||||
Basic chemicals | 396.3 | 514.0 | +117.7 | +29.7 % | ||||
Functional materials | 302.7 | 381.2 | +78.5 | +25.9 % | ||||
Power and | 92.4 | 148.0 | +55.7 | +60.3 % | ||||
renewable energy | ||||||||
Resources | 246.8 | 495.5 | +248.7 | +100.8 % | ||||
Other | 4.3 | 4.1 | (0.2) | (5.7) % | ||||
Total | 4,647.2 | 7,211.3 | +2,564.1 | +55.2 % | ||||
Segment income or loss | ||||||||
(Unit: ¥Billion) | ||||||||
3rd Quarter of | 3rd Quarter of | Change | ||||||
FY2021 | FY2022 | Amount | % | |||||
Petroleum | 236.8 | 139.7 | (97.1) | (41.0) % | ||||
: excluding effect of | ||||||||
inventory valuation | 73.7 | 1.2 | (72.5) | (98.4) % | ||||
Basic chemicals | 7.6 | 11.4 | +3.8 | +49.5 % | ||||
Functional materials | 14.2 | 16.4 | +2.1 | +15.1 % | ||||
Power and | (7.6) | 1.1 | +8.7 | － | ||||
renewable energy | ||||||||
Resources | 56.4 | 177.7 | +121.4 | +215.2 % | ||||
Other | 0.7 | 0.7 | (0.1) | (7.7) % | ||||
Reconciliation | (10.9) | (23.2) | (12.3) | － | ||||
Total | 297.3 | 323.8 | +26.5 | +8.9 % | ||||
: excluding effect of | ||||||||
inventory valuation | 134.2 | 185.4 | +51.2 | +38.1 % | ||||
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Idemitsu Kosan Co. Ltd. published this content on 14 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 February 2023 06:07:03 UTC.
