Consolidated Financial Results for the Six Months Ended September 30, 2024 [Based on Japanese GAAP] ( 108KB )

FY2024 2Q Financial Results for the Six months ( 557KB )

During the six months ended September 30, 2024, the Japanese economy had tendency to improve in the employment and income environment, but the economic outlook became more uncertain due to the uncertainty about the economic outlook increased due to the volatility of crude petroleum price caused by the tension in the Middle East and price increases caused by the depreciation of the yen.
In the energy industry that surrounds our group, the demand for aviation fuel has been increasing due to inbound tourists, but the demand for overall petroleum products has been decreasing due to factors such as a decline in the use of private vehicles and improved fuel efficiency in automobiles.
Under these circumstances, SAN-AI OBBLI Group promoted strategic implementation and growth-oriented investments to achieve the second stage of our medium-term management plan, “Challenge for the Transforming Future 2030,” which is our vision for Fiscal Year 2030.

During the six months ended September 30, 2024, net sales of our group decreased by 3.4% year-on-year to 307,152 million yen due to the decrease in sales volume of petroleum products. Operating profit decreased by 36.2% year-on-year to 5,532 million yen due to the revision of the unit price for fuel handling fees in the aviation-related business. Ordinary profit decreased by 33.6% year-on-year to 6,055 million yen, and profit attributable to owners of parent decreased by 20.4% year-on-year to 4,488 million yen.

Results by business segment are as follows.

In the Petroleum-related business, although gasoline sales increased firm, sales of kerosene, diesel fuel, and heavy oil were sluggish, so overall sales volume fell year-on-year.
The status of each division is as follows.
In the Petroleum retail division, sales volume and earnings both fell year-on-year due to fell sales in directly managed Service Station. In the Petroleum wholesale business, gross profit rose year-on-year due to improved margins, but profits fell year-on-year due to an increase in selling, general and administrative expenses .In the Industrial fuel oil sales division, both sales volume and profits fell year-on-year due to intensifying price competition. In the Industrial lubricants sales division, gross profit increased due to increased orders for gas engine maintenance for power generation and endoscopy surveys for wind power generation. On the other hand, profit fell year-on-year due to the recording for provision of reserve for doubtful accounts due to the interruption of wind power plant development surveys.

Consequently, net sales in the Petroleum-related business decreased by 4.4% year-on-year to 263,747 million yen, and segment profit decreased by 16.8% year-on-year to 4,281 million yen.

In the Chemical Products-related business, while sales volume of each product remained at the same level as the same period of the previous year, profit margins improved due to optimization of the supply chain.
The status of each product is as follows.
In Automotive-related products, although the sales volume of commercial car wash products, the company's own product fell year-on-year, profit rose year-on-year due to a recovery in profit margins. Sales volume and profits for Biocide products both remained at the same level as the same period of the previous year. In solvent and industrial chemicals, profit rose year-on-year due to a recovery in profit margins. In tackifier, profit rose year-on-year due to a recovery in sales volume for petroleum resin and packaging tape applications. In other areas, sales of higher alcohol as a performance chemicals were strong.

Consequently, net sales in the Chemical Products-related business increased by 6.3% year-on-year to 6,311 million yen, and segment profit increased by 24.6% year-on-year to 516 million yen.

In LPG sales business, sales volume remained at the same level as the same period of the previous 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 for household, profit rose year-on-year due to an increase in the number of customers following the acquisition of goodwill. In the wholesale division, sales volume rose year-on-year due to marine trades and other factors, and profit increase year-on-year due to the impact of inventory valuations.

In the Natural gas business, sales volume increased year-on-year for household use due to the acquisition of Imari Gas Co., Ltd (*).
In the Commercial and Industrial products department, sales volume fell slightly year-on-year due to a decrease in demand from some customers. As a result, in the Natural gas sales industry as a whole, sales volume was at the same level as the same period of the previous year, but profit were down year-on-year due to a decrease in industrial sales volume.

Consequently, net sales in the Gas-related business increased by 11.7% year-on-year to 27,199 million yen due to higher sales price for LPG.
Segment profit increased by 38.4% year-on-year to 374 million yen.

(＊) In May 2024, the company acquired shares of Imari Gas Co., Ltd., which supplies city gas and sells LPG to retailers in Imari City, Saga Prefecture.

In the Aviation-related business, air travel demand was generally strong due to an increase in foreign visitors to Japan and so on. The volume of fuel handled at Haneda Airport decreased slightly year-on-year on domestic airline due to bad weather. On international airline , sales were strong due to the resurgence of flights from the COVID-19 and the launch of new long-haul routes in line with inbound demand. As a result, the combined volume of fuel handled on domestic and international airline increased by about 8% year-on-year. In addition, results in the fueling business at other airports, excluding Haneda Airport, were also strong due to a recovery in aviation demand.
However, both sales and profits fell sharply year-on-year due to revisions to the unit price of fuel handling fees at Haneda Airport.
Consequently, in the Aviation-related business, net sales decreased by 23.9% year-on-year to 7,197 million yen, and segment profit decreased by 59.1% year-onyear to 1,781 million yen.

In The Other businesses, in the cleaning and surface treatment business for metal products and other products, orders for precision cleaning treatment were sluggish due to factors such as continued production adjustments for semiconductor manufacturing equipment, and sales were down year-on-year, but profit were up yearon-year due to improved profit margins. In the construction industry, both sales and profits exceeded the results for the same period of the previous fiscal year due to firm orders.
Consequently, sales in The Others segment increased by 10.8% year-on-year to 2,696 million yen due to firm orders in the construction industry. Segment profit increased by 11.8% year-on-year to 326 million yen.