K&O Energy Group Inc.
1663・Prime Market・Mining
Gas Business
Core business spanning natural gas development and extraction through city gas supply
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment Revenue (External Customers) - Q1 FY2026 (ending December 2026) | ¥18,848 million | ¥20,354 million (Q1 FY2025, ending December 2025) | ↓ |
| Segment Profit (Operating Profit Basis) - Q1 FY2026 (ending December 2026) | ¥2,100 million | ¥2,113 million (Q1 FY2025, ending December 2025) | — |
| Segment Revenue (External Customers) - Full Year Results | ¥67,692 million (Full Year FY2025, ending December 2025) | — | — |
| Segment Profit (Operating Profit Basis) - Full Year Results | ¥4,966 million (Full Year FY2025, ending December 2025) | — | — |
Business Details
Kanto Natural Gas Development Co., Ltd. is responsible for the development, extraction, and sales of water-soluble natural gas in the South Kanto gas field, while Otaki Gas Co., Ltd. handles city gas supply and sales, LP gas sales, and compressed natural gas manufacturing and sales. The group has established an integrated vertical structure spanning from upstream production to supply to end users. Major customers include Idemitsu Kosan Co., Ltd. This is the group's largest segment, accounting for approximately 74% of consolidated revenue.
Recent Overview
Revenue declined 7.4% due to lower gas sales prices, but reduced procurement costs kept profit roughly level with the prior year
Gas Business revenue for Q1 FY2026 (ending December 2026) decreased 7.4% year on year to ¥18,848 million, mainly due to lower gas sales prices resulting from the impact of imported energy prices. On the other hand, operating profit was maintained at ¥2,100 million, roughly in line with the prior-year period, owing to a decrease in gas procurement costs. The decline in revenue was primarily attributable to price factors, while cost reductions largely offset the impact and maintained the profit level.
Key Products
Growth Drivers
- Expansion of gas sales volume acquired through promotion of local production for local consumption under the Medium-Term Management Plan 2027 (cumulative target of 5.4 million m³)
- Increase in domestic natural gas production volume (target: 180 million m³/year by 2027)
- Stable demand for water-soluble natural gas, positioned as an important energy source even in a decarbonized society
- Synergies with future businesses through investments of over ¥3 billion in renewable energy businesses (geothermal, offshore wind, etc.)
- Expansion of the number of customer accounts (target: 210,000 by 2027)
Risks
- Risk of declining gas sales prices due to fluctuations in imported energy prices (materialized in Q1 FY2026, with revenue down 7.4%)
- Risk of fluctuation in gas sales volume from major customers such as those in power generation applications
- Long-term risk of declining natural gas demand due to accelerating energy transition (decarbonization)
- Risk of natural decline in reserves and production volume in the South Kanto gas field
- Revenue for full-year FY2026 (ending December 2026) is also expected to decline due to lower gas sales prices (company forecast: full-year revenue down 4.8% year on year)
Last updated: March 27, 2026