SAN-AI OBBLI CO.,LTD.
8097・Prime Market・Wholesale Trade
Petroleum-Related Business
The core segment of Sanei Obuli, responsible for the sale, storage, and shipping of petroleum products, positioned as a transformation business
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment Sales | ¥516,413 million | ¥560,251 million | ↓ |
| Segment Profit | ¥5,670 million | ¥7,377 million | ↓ |
| Segment Assets | ¥86,567 million | ¥97,031 million | ↓ |
| Depreciation and Amortization | ¥1,514 million | ¥1,609 million | ↓ |
| Increase in Property, Plant and Equipment and Intangible Assets | ¥2,790 million | ¥2,620 million | ↑ |
| Impairment Loss | ¥494 million | ¥35 million | ↓ |
Business Details
Sanei Obuli Co., Ltd. and Kygnus Sekiyu K.K. sell petroleum products such as gasoline, kerosene, diesel oil, and heavy oil to distributors and large-volume customers, and also provide storage and shipping services on a consignment basis from petroleum wholesalers and others. The segment consists of four divisions—Retail of Petroleum Products, Wholesale of Petroleum Products, Industrial Fuel Oil, and Industrial Lubricant Oil—and accounts for approximately 84% of the Group's external customer sales, making it the largest segment. In FY2026 (ending March 2026), both sales and profit declined year on year due to a decrease in overall petroleum product sales volume.
Recent Overview
Sales and profit both declined significantly due to lower sales volume and deteriorating profitability in the wholesale division
In the Petroleum-Related Business for FY2026 (ending March 2026), sales decreased 7.8% year on year to ¥516,413 million, and segment profit decreased 23.1% year on year to ¥5,670 million. Gasoline sales volume remained resilient, while kerosene, diesel oil, and heavy oil continued to trend downward. In the petroleum wholesale division, profitability on some transactions at Kygnus Sekiyu K.K. deteriorated, causing a substantial decline in profit. The industrial fuel oil division saw profit exceed the prior period due to improved profitability, but this was insufficient to offset the overall decline. An impairment loss of ¥494 million was also recorded within the Petroleum-Related Business.
Key Products
Growth Drivers
- Continued profitability improvement in the Industrial Fuel Oil Sales division (confirmed in results for FY2026, ending March 2026)
- Recovery in orders for gas engine maintenance for power generation and endoscopic inspections for wind power in the Industrial Lubricant Oil Sales division
- Reinvestment in existing service stations and accelerated capital investment under the second stage of the medium-term management plan "Challenge2030" (increase in property, plant and equipment and intangible assets compared to the prior period)
- Continued capital investment such as maintenance work at oil depots to maintain a stable operational foundation
- Maintenance of the retail division's sales base through resilient gasoline sales volume
Risks
- Market instability due to policy changes such as the government's fixed reduction measures for fuel oil prices and the abolition of provisional tax rates for gasoline and diesel taxes (materialized in FY2026, ending March 2026)
- Continued decline in overall petroleum product sales volume due to the ongoing downward trend in demand for kerosene, diesel oil, heavy oil, etc.
- Recurrence of profitability deterioration risk in some transactions at Kygnus Sekiyu K.K. (had a significant impact in FY2026, ending March 2026)
- Margin compression due to intensifying price competition in the petroleum retail division
- Geopolitical risks such as crude oil price spikes and supply shortages due to the prolonged situation in Iran
- Increased procurement costs and cooling consumer sentiment due to yen depreciation and rising resource prices
Last updated: June 24, 2026