OSAKA GAS CO., LTD.
9532・Prime Market・Electric Power & Gas
Business
Osaka Gas (Daigas Group) was founded in 1897 and is composed of three segments: the Domestic Energy business, which centers on supplying city gas and electricity mainly across two prefectures and four counties in the Kinki region; the Overseas Energy business, which handles natural gas development, LNG liquefaction, and electricity operations in the US, Australia, and Asia; and the Life & Business Solutions business, which brings together real estate development, information systems, and chemical materials. The group comprises 154 consolidated subsidiaries and 114 affiliated companies, with a customer base of over 5.16 million gas supply contracts and over 1.94 million low-voltage electricity supply contracts. With an eye toward the transition to a carbon-neutral society, the company is also actively investing in e-methane, renewable energy, and battery storage businesses.
Business Model
In the Domestic Energy business, stable earnings are secured through per-supply-point charges via the gas pipeline infrastructure and sales unit pricing linked to the raw material cost adjustment system. In the Overseas Energy business, multi-layered earnings, including equity-method income, are derived from US shale gas upstream operations, LNG liquefaction (Freeport), and Australia LNG interests (Gorgon, Ichthys). In the Life & Business Solutions business, accumulation-type earnings from rental real estate, IT services, and high-value-added materials are added, forming a structure that diversifies energy price fluctuation risk.
Company Strengths
The number of gas supply contracts at the end of FY2026 (ending March 2026) reached 5,161 thousand (up 0.9% year on year), while low-voltage electricity supply contracts reached 1,946 thousand (up 1.3% year on year). Electricity sales volume continued to expand to 17,238 million kWh (up 1.5% year on year) through set sales to existing gas customers, and the depth of the customer base forms a barrier to entry for competitors.
The company consistently holds and operates interests in Australia's Gorgon and Ichthys projects, the US Freeport LNG Liquefaction Terminal, its own LNG carriers, and domestic manufacturing plants and pipeline networks. Overseas Energy operating income for FY2026 (ending March 2026) expanded sharply to ¥67,650 million (up 25.4% year on year), with vertical integration from upstream to retail supporting earnings stability and competitiveness.
The equity ratio at the end of FY2026 (ending March 2026) was 54.4% (up 1.6 points year on year), and the D/E ratio remained within the medium-term plan target of 0.8 or below. ROIC achieved an actual result of 5.8% against a plan of 5.0%, and ROE achieved an actual result of 8.7% against a plan of 7.5%. The company maintains a progressive dividend policy (targeting a DOE of 3.5%), balancing financial discipline with shareholder returns.
ENVALITH's Perspective
Performance Trend
Revenue was ¥2,030,302 million (down 1.9% year on year), a second consecutive slight decline. The main cause was a decline in gas sales unit prices under the raw material cost adjustment system in Domestic Energy (Domestic Energy revenue down 5.4%). On the other hand, operating profit was ¥174,809 million (up 8.8% year on year), ordinary profit was ¥204,522 million (up 7.8%), and profit attributable to owners of parent was ¥152,751 million (up 13.6%), showing marked improvement on the profit side. Overseas Energy segment profit rose 22.9% and Life & Business Solutions rose 30.2%, offsetting the decline in Domestic Energy profit (down 7.2%). Cost of sales was ¥1,592,785 million (down 4.2% year on year), with the decline in raw material costs contributing to improved gross margin. Over the five-year trend, the company has recovered from the sharp profit decline in FY2023 (ending March 2023) (operating profit of ¥60,001 million), and in FY2026 (ending March 2026) achieved the highest operating profit and net profit of the past five fiscal periods.
Growth Strategy
Pursuing sustainable growth through three axes: domestic electricity expansion, overseas upstream investment, and carbon-neutral technology
Unit 1 of the Himeji Natural Gas Power Plant commenced operation during the current fiscal year, with Unit 2 scheduled to begin operation in FY2027 (ending March 2027). The new power source, with a combined generation capacity of approximately 1.25 million kW, will strengthen the competitiveness of the Electricity (Retail & Wholesale) business, although increased depreciation expenses are expected to be a factor pushing down operating profit in FY2027 (ending March 2027).
Owing to the stable operation of the US Freeport LNG Liquefaction Terminal Business and increased production in the US Upstream Business, Overseas Energy segment profit for FY2026 (ending March 2026) reached ¥88.3 billion (on a segment-disclosure basis), up 22.9% year on year. Profit growth was maintained even after the sale of Sabine Oil & Gas, and the quality of the portfolio improved.
Expansion is occurring across three areas: the Urban Development Business (real estate leasing), Materials Solutions (fine materials and activated carbon), and Information Solutions (DX and AI demand). In FY2026 (ending March 2026), segment sales rose 13.2% year on year to ¥319.8 billion, while segment profit rose 30.2% to ¥37.4 billion, achieving high growth.
The annual dividend for FY2026 (ending March 2026) was ¥120 (a 26.3% increase from ¥95 in the previous fiscal year), with a payout ratio of 30.7%. The forecast dividend for FY2027 (ending March 2027) is ¥130 (forecast payout ratio of 34.4%). In addition, at the Board of Directors meeting on May 8, 2026, a resolution was passed to acquire treasury shares up to a limit of 28 million shares and ¥80,000 million, clearly demonstrating enhanced capital efficiency and strengthened shareholder returns.
Last updated: July 19, 2026