Idemitsu Kosan Co ( (IDKOF) ) has released its Q1 earnings. Here is a breakdown of the information Idemitsu Kosan Co presented to its investors.
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Idemitsu Kosan Co., Ltd. is a Japanese company primarily engaged in the petroleum industry, with operations spanning across basic chemicals, functional materials, power and renewable energy, and resource exploration. In the latest earnings report for the three months ending June 30, 2025, Idemitsu Kosan reported a significant decline in financial performance compared to the previous year. The company’s net sales fell by 18.5% to ¥1,843.0 billion, and it recorded an operating loss of ¥21.0 billion, a stark contrast to the operating income of ¥122.5 billion in the same period last year. Net income attributable to owners of the parent also plummeted by 94.5% to ¥5.2 billion.
The earnings report highlighted several key financial metrics, including a decrease in net sales across most segments, with the petroleum segment experiencing a 19.0% drop due to declining crude oil prices and inventory valuation effects. The basic chemicals segment also saw a 23.6% decline in net sales, while the functional materials segment managed a slight increase in segment income despite a 2.5% drop in net sales. The power and renewable energy segment reduced its losses, and the resources segment faced a 24.5% decrease in net sales due to lower production volumes and crude oil prices.
Financially, Idemitsu Kosan’s total assets decreased by ¥388.3 billion to ¥4,387.3 billion, primarily due to reductions in receivables and inventories. Liabilities also decreased, leading to an improved equity ratio of 38.3%. Despite the challenging quarter, the company maintained its dividend forecast and financial outlook for the fiscal year ending March 31, 2026, with no revisions to its previously announced forecasts.
Looking ahead, Idemitsu Kosan remains committed to navigating the volatile market conditions and maintaining its strategic focus across its diverse business segments. The company’s management continues to monitor market trends and adjust its strategies accordingly to sustain its financial health and operational efficiency.