SHIZUOKA GAS CO.,LTD.
9543・Prime Market・Electric Power & Gas
Business
Shizuoka Gas Co., Ltd., founded in 1910, is a regional comprehensive energy company operating city gas, LPG, electricity, and engineering services primarily in Shizuoka Prefecture. The group comprises 33 consolidated subsidiaries and 7 equity-method affiliates, with the Gas segment (approximately 78% of consolidated net sales) as its core, supplemented by peripheral businesses such as LPG & Other Energy and Facility Construction & Contracted Works/Housing. Its main customers are residential, commercial, and industrial gas users (361,987 meters installed at fiscal year-end), and it also has wholesale supply customers including INPEX and Sala Energy. In recent years, the company has entered the U.S. Shale Gas Development Business and expanded overseas into Southeast Asia, India, and Vietnam.
Business Model
The company procures LNG from Malaysia and other sources under long-term contracts, and supplies city gas manufactured by Shimizu LNG Co., Ltd. to customers through its own pipeline network (total trunk and branch pipeline length of 5,419km). It has a mechanism whereby fluctuations in LNG prices are passed through to gas sales unit prices via the feedstock cost adjustment system. By combining LPG, electricity, On-site Energy Services, Facility Construction & Contracted Works, and the Housing Business, among others, the company diversifies its earnings as a community-based comprehensive energy service provider.
Company Strengths
The equity ratio at the end of FY2025 stood at 67.0%, with interest-bearing debt limited to ¥17,983 million. The ratio of cash flow to interest-bearing debt was 0.5 years, and the interest coverage ratio was 217.3x, maintaining an extremely sound financial structure. Operating CF improved significantly to ¥34,560 million, achieving a balance between aggressive investment and financial stability.
By prioritizing LNG procurement under long-term contracts even during periods of sustained high spot market prices, the company suppressed spot procurement. In FY2025, operating profit in the Gas segment reached ¥14,880 million, up 52.6% year on year, demonstrating that optimizing the procurement portfolio directly translates into earnings improvement.
Through the consolidation of Fuji Kōatsu Co., Ltd.'s LPG business and the incorporation of Good Living Co., Ltd.'s housing business, sales in the Other segment expanded 25.7% year on year to ¥23,248 million. The company has continued to strengthen its business foundation through M&A and investment both domestically and overseas, including the acquisition of interests in the U.S. Shale Gas Development Business in May 2025.
ENVALITH's Perspective
Performance Trend
Revenue for Q1 FY2026 (ending March 2026) (January-March) was ¥53,788 million (down 4.1% year on year). As external factors, downward adjustments to gas selling prices under the raw material cost adjustment system and a decline in gas sales volume (total 419 million m³, down 1.9% year on year) pushed down revenue. On the other hand, the completion of receipt this quarter of LNG that had been prepaid for in FY2021 (ended December 2021) led to a significant decrease in cost of sales to ¥40,766 million (from ¥44,247 million in the same period of the previous year), and gross margin improved to 24.2% (from 21.1% in the same period of the previous year). Operating profit rose significantly to ¥5,281 million (+14.2%), ordinary profit to ¥5,760 million (+22.5%), and profit attributable to owners of parent to ¥3,619 million (+20.6%), with substantial increases at each profit stage. However, the full-year forecast calls for revenue of ¥201,130 million (flat versus the previous fiscal year) and operating profit of ¥9,620 million (down 31.6% versus the previous fiscal year), anticipating the fading of the temporary cost improvement effect. Operating profit over the past five fiscal years peaked at ¥18,340 million in FY2023 (ended December 2023), fell sharply to ¥10,302 million in FY2024 (ended December 2024), and recovered to ¥14,072 million in FY2025 (ended December 2025), but is expected to decline again in FY2026 (ending December 2026).
Growth Strategy
Maintaining stability in the core Gas business while expanding four growth businesses: Electricity, Renewable Energy, Lifestyle Services, and overseas LNG
The company will invest US$100 million in MidOcean Energy (MOE) through an EIG-managed fund, expanding the LNG business value chain from upstream to downstream both domestically and internationally. A memorandum of understanding for building a strategic partnership with MOE was signed on April 22, 2026. The aim is to establish a business portfolio that balances stability and profitability.
The company will strengthen supply capacity and adjustment capability through the expansion of the Fuji Power Plant and aggressive investment in grid-connected storage batteries, aiming to expand electricity sales volume. It will pursue reduced dependence on the balancing market alongside expansion of direct sales to customers, strengthening the earnings base of the LPG & Other Energy segment.
The company aims to expand earnings in the Other segment through the consolidation of Good Living Co., Ltd. as a subsidiary, incorporating the housing business, and through increased orders for facility construction work. From 2026, group reorganization is planned to accelerate growth centered on the Lifestyle Services business and the Engineering Services business. The company will continue its policy of expanding business areas through M&A.
Receipt of the prepaid LNG from FY2021 (ending December 2021) was completed in the first quarter of the current fiscal year, resulting in a temporary improvement effect on cost of sales. Going forward, the company will maintain and strengthen the competitiveness of raw material costs through stable procurement via long-term LNG contracts and by curbing spot market procurement.
Last updated: July 17, 2026