Nippon Gas sees strong Q2 earnings, announces share buyback plan

Nippon Gas reported consolidated financial results for the second quarter of the fiscal year ending March 2026, showing significant growth. Net sales reached 88,195 million yen, a 2.5% increase year-on-year. Operating income surged 116.6% to 4,997 million yen, and ordinary income was up 108.7% to 5,036 million yen. Profit attributable to owners of parent increased 113.7% to 3,439 million yen. This performance led to a revised full-year operating income forecast of 20,000 million yen.

Total assets stood at 138,929 million yen as of September 30, 2025, with net assets at 64,696 million yen, resulting in an equity ratio of 46.6%. Nippon Gas announced a resolution to repurchase up to 4,000,000 shares, totaling a maximum of 9,000 million yen, between October 29, 2025, and March 31, 2026. This buyback is part of a plan to achieve a 40% capital-to-asset ratio by fiscal year-end 2026 and a total return ratio of 145% for the current fiscal year.

Strong results were driven by increased gross profits from the electricity business due to higher subscriptions and sales volumes, alongside improved margins. LP gas business gross profit remained stable, with residential customer growth offsetting a decrease in commercial sales volumes. The city gas business also saw stable gross profit, supported by an increase in residential customers.