NIPPON COKE & ENGINEERING COMPANY, LIMITED
3315・Prime Market・Oil & Coal Products
Coke Business
The Group's core segment responsible for coke manufacturing and sales
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment revenue (external customers) | ¥56,134 million | ¥58,714 million | ↓ |
| Segment operating income (loss) | -¥2,328 million | -¥12,357 million | ↑ |
| Segment assets | ¥83,094 million | ¥84,670 million | ↓ |
| Depreciation and amortization | ¥5,299 million | ¥4,563 million | ↑ |
| Impairment loss | ¥4,334 million | ¥0 million | ↓ |
| Coke production volume | 990 thousand tons | 917 thousand tons | ↑ |
| Coke sales volume | 972 thousand tons | 871 thousand tons | ↑ |
Business Details
Coke for Blast Furnaces and by-products are manufactured at the Kitakyushu Plant and sold to domestic and overseas steel manufacturers such as Nippon Steel Corporation and Sumitomo Corporation, in addition to sales through the consolidated subsidiary Nippon Coke Kogyo Tohoku Co., Ltd. In November 2025, the two aging furnace batteries were suspended, transitioning to a two-battery operation with sound facilities. This segment accounts for approximately 61% of the Company Group's consolidated revenue in FY2026 (ending March 2026) (based on external customer revenue of ¥56,134 million).
Recent Overview
Operating loss improved significantly due to the transition to two-battery operation and increased production effects; an impairment loss of ¥4,334 million was recorded
In November 2025, the two aging furnace batteries were suspended, transitioning to a two-battery operation with sound facilities. At the end of December 2025, a fire accident occurred in the coal transport belt conveyor, but the decline in production volume was offset by a coal charging method using cranes as an alternative means. Through reductions in fixed costs such as repair expenses and a reduction in the per-ton fixed cost burden from increased production, the operating loss improved significantly from ¥12,357 million in the prior period to ¥2,328 million. On the other hand, an impairment loss of ¥4,334 million related to idle assets was recorded as an extraordinary loss.
Key Products
Growth Drivers
- Expansion of production volume through increased operating time of the new state-of-the-art 2A coke oven (production volume in FY2026 (ending March 2026) was 990 thousand tons, an increase of 73 thousand tons year on year)
- Significant reduction in repair expenses and fixed costs and improvement in manufacturing costs through concentrated operation of the two sound furnace batteries
- Recovery in profitability through establishment of stable production under the two-battery system (operating income of ¥3,600 million forecast for FY2027 (ending March 2026 [sic]))
- Continued existence of a certain level of domestic coke demand (for the steel industry)
Risks
- Continued fire accident risk (a belt conveyor fire occurred in December 2025, resulting in a forced reduction in production)
- Impact on sales unit prices due to fluctuations in coking coal and coke market conditions
- Limited alternative production means in the event of operational trouble under the two-battery system
- Risk of revenue concentration on major customers (Nippon Steel and Sumitomo Corporation)
- Risk of breaching financial covenants under the commitment line agreement (net assets must be at least 80% of the FY2026 (ending March 2026) level, and operating income/loss must not be negative for two consecutive periods)
- Continued decline in the equity ratio (27.5% in FY2026 (ending March 2026), down from 31.8% in the prior period), weakening the financial base
Last updated: June 25, 2026