HIROSHIMA GAS CO.,LTD.
9535・Prime Market・Electric Power & Gas
Gas Business
Core city gas business segment covering the supply area within Hiroshima Prefecture
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment Net Sales | ¥68,877 million | ¥71,943 million | ↓ |
| Segment Profit | ¥961 million | ¥550 million | ↑ |
| Segment Assets | ¥113,003 million | ¥110,204 million | ↑ |
| City Gas Sales Volume | 457 million m³ | 459 million m³ | ↓ |
| Number of Customer Connections (End of Period) | 419,257 connections | 418,334 connections | ↑ |
| Electricity Sales Volume | 41 million kWh | 37 million kWh | ↑ |
Business Details
Manufactures, supplies, and sells city gas primarily in the supply areas of Hiroshima City, Hatsukaichi City, Higashihiroshima City, Kure City, Onomichi City, Mihara City, and Fukuyama City. LNG, the main raw material, is imported from overseas by LNG tanker. The segment also handles gas appliance sales, gas equipment installation work, and wholesale supply to other gas operators. As the core business accounting for approximately 78.0% of consolidated net sales, it supplies gas for residential, commercial/industrial, and wholesale supply and other uses.
Recent Overview
Net sales decreased 4.3% year on year due to lower sales volume and unit prices, but segment profit increased 74.7% due to cost reductions
Gas Business net sales for FY2026 (ending March 2026) were ¥68,877 million (down 4.3% year on year). City gas sales volume decreased 0.5% to 457 million m³, with residential (down 1.5%) and commercial/industrial (down 5.0%) both declining, while wholesale supply, etc. increased significantly by 20.4% to 83 million m³. A decline in the average selling price also pushed down net sales. On the other hand, segment profit increased 74.7% year on year to ¥961 million due to a decrease in various expenses, resulting in a significant improvement in profitability.
Key Products
Growth Drivers
- Continued increase in the number of customer connections (up 923 year on year to 419,257 through proactive sales activities)
- Substantial increase in wholesale supply, etc. (up 20.4% year on year to 83 million m³, driven by higher sales volume to existing customers of wholesale supply destinations)
- Expansion of electricity sales volume (up 10.0% year on year to 41 million kWh)
- Reduction in cost of sales and improved profitability due to lower raw material prices (JCC crude oil price declining from $82/bbl to $71/bbl)
- Diversification of LNG procurement sources and strengthening of a stable procurement base
Risks
- Continued decline in city gas sales volume (down 0.5% for the current consolidated fiscal year, with commercial/industrial down 5.0%)
- Risk of rising LNG raw material procurement costs due to exchange rate fluctuations and rising crude oil prices (assumptions for the next fiscal year's plan: JCC $80/bbl, ¥155/$)
- Geopolitical risk related to continued LNG imports from Russia (procurement is currently proceeding without disruption)
- Intensifying competition among operators due to full liberalization of the gas and electricity retail markets
- Long-term risk of declining city gas demand due to the trend toward decarbonization aimed at carbon neutrality by 2050
- Long-term risk of shrinking residential demand due to population decline associated with the falling birthrate and aging population
Last updated: June 19, 2026