JAPEX sells Hokkaido gas business to Hokkaido Electric Power for JPY 31 bn

JAPEX resolved on December 3, 2025, to transfer its Hokkaido gas business, encompassing gas manufacturing, sales, and pipeline operations, to Hokkaido Electric Power Co., Inc. for JPY 31 billion. This strategic move, part of JAPEX's 2022-2030 management plan, aims to review its business portfolio and enhance profitability. JAPEX will continue its E&P operations in Hokkaido, supplying natural gas to the acquiring company.

The transferred operations generated sales of JPY 9.86 billion in the fiscal year ending March 2025, representing 2.5% of JAPEX's consolidated sales of JPY 389.082 billion. As of March 31, 2025, the transferred assets amounted to JPY 433 million (current assets) with no fixed assets recognized beyond a memorandum value, while liabilities totaled JPY 1.045 billion.

Hokkaido Electric Power Co., Inc., headquartered in Sapporo, is engaged in electricity generation and retail. JAPEX anticipates recording a special gain in its consolidated financial results for the fiscal year ending March 2027 as a result of this divestiture.