HOKURIKU GAS CO.,LTD.
9537・Standard Market・Electric Power & Gas
City Gas
The core business of the Hokuriku Gas Group. Supplies city gas within Niigata Prefecture.
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment sales (total including external customers and internal transactions) | ¥60,646 million | ¥57,550 million | ↑ |
| Segment profit | ¥3,429 million | ¥1,000 million | ↑ |
| Gas sales volume | 416,639 thousand m³ | 405,762 thousand m³ | ↑ |
| Depreciation and amortization | ¥5,741 million | ¥5,683 million | ↑ |
| Goodwill amortization | ¥243 million | ¥164 million | ↑ |
| Increase in tangible and intangible fixed assets | ¥9,727 million | ¥4,492 million | ↑ |
| Investment in equity-method affiliates | ¥407 million | ¥351 million | ↑ |
Business Details
Hokuriku Gas Co., Ltd. and its consolidated subsidiary Kanbara Gas Co., Ltd. manufacture, supply, and sell city gas mainly in the Niigata, Nagaoka, and Kashiwazaki areas, including associated contracted construction and appliance sales. Raw material LNG is partly procured from Hokuriku Natural Gas Development Co., Ltd. The equity-method affiliate Myoko Green Energy Co., Ltd. also took over and operates the gas business transferred from Myoko City. In April 2025, the company acquired the Ojiya City gas business, expanding its supply area. This core segment accounts for approximately 94% of the Group's consolidated net sales.
Recent Overview
The Ojiya City gas business acquisition and the gas rate revision combined to drive substantial increases in sales and profit.
Effective April 1, 2025, the company acquired the city gas business of Ojiya City for ¥3,481 million (recognizing goodwill of ¥1,577 million and customer-related assets of ¥440 million, both amortized on a straight-line basis over 20 years). As a result, gas sales volume rose 2.7% year on year to 416,639 thousand m³. In addition, the full-year contribution of the gas rate revision implemented in October 2024 pushed segment sales up 5.4% year on year, and segment profit surged 242.8% year on year to ¥3,429 million. On the other hand, decreased equipment utilization among commercial customers and reduced hot-water and heating demand due to warmer winter temperatures partially offset these gains.
Key Products
Growth Drivers
- Full-year contribution of the unit price increase from the October 2024 gas rate revision (the first in 14 years)
- Expansion of supply area and customer base through the April 2025 acquisition of the Ojiya City gas business
- Improved profit margin from lower raw material costs due to declining LNG prices
- Expansion of customer base through new services such as the Gas & Electricity Bundle "Hokuriku Gas + Denki"
- Strengthened positioning of natural gas as a transitional decarbonization-era energy source under the 7th Strategic Energy Plan
Risks
- Sluggish demand due to reduced equipment utilization among commercial customers
- Uncertainty in seasonal demand due to temperature fluctuations (sales volume falls short of plan when winter temperatures are warmer)
- Risk of increased raw material costs from a renewed rise in LNG prices (an increase in raw material costs is expected in the FY2027 (ending March 2027) forecast)
- Intensifying competition among energy providers (competition crossing industry and regional boundaries)
- Burden of 20-year amortization and impairment risk related to goodwill (¥1,577 million) recognized upon the Ojiya City gas business acquisition
- Long-term demand contraction due to population decline and aging
- Instability in LNG procurement costs due to geopolitical risks such as Middle East tensions
Last updated: June 25, 2026