SHIZUOKA GAS CO.,LTD.
9543・Prime Market・Electric Power & Gas
Gas
The core business of the Shizuoka Gas Group, accounting for approximately 75% of consolidated net sales.
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment net sales (external customers, cumulative Q1 FY2026) | ¥40,080 million | ¥44,070 million (cumulative Q1 FY2025) | ↓ |
| Segment profit (operating income, cumulative Q1 FY2026) | ¥5,185 million | ¥4,861 million (cumulative Q1 FY2025) | ↑ |
| Total gas sales volume (cumulative Q1 FY2026) | 419 million m³ | 427 million m³ (cumulative Q1 FY2025) | ↓ |
| Number of customers (meters installed, end of Q1 FY2026) | 362,241 units | 362,304 units (end of Q1 FY2025) | — |
Business Details
The core business involves the manufacturing, supply, and sale of city gas and LNG. In addition to direct sales to residential, commercial, and industrial customers within Shizuoka Prefecture through the pipeline network, the segment also provides wholesale supply to other gas operators. The Company maintains a vertically integrated supply structure in which Shimizu LNG Co., Ltd. manufactures product gas from LNG feedstock and sells it to the Company. Overseas, the Company has entered the U.S. Shale Gas Development Business through SHIZUOKA GAS AMERICA CO., advancing its expansion into upstream operations.
Recent Overview
Net sales declined 9.1% year on year due to lower unit prices and reduced sales volume, but profit improved owing to the delivery of prepaid LNG costs.
In Q1 FY2026, net sales to external customers in the Gas segment were ¥40,080 million (versus ¥44,070 million in the same period of the previous year), a decrease mainly due to downward adjustment of gas sales unit prices under the raw material cost adjustment system and a decline in gas sales volume across all usage categories (down 1.9% in total). On the other hand, segment profit increased to ¥5,185 million (versus ¥4,861 million in the same period of the previous year). The main factor was a reduction in cost of sales resulting from the delivery in this quarter of LNG for which only costs had been prepaid in response to the sharp decline in demand in FY2021 (ended December 2021). As a subsequent event, the Company has decided to invest US$100 million in MidOceanEnergy (MOE) through a fund operated by EIG, and has announced its policy to promote expansion of the LNG business value chain from upstream to downstream.
Key Products
Growth Drivers
- Normalization of cost of sales and improved profitability from the completion of delivery of prepaid LNG costs from FY2021 (ended December 2021)
- Expansion of the domestic and overseas LNG upstream value chain through investment (US$100 million) in MidOceanEnergy (MOE) via a fund operated by EIG
- Strengthening of a stable LNG procurement base through the establishment of a strategic partnership with MOE
- Stabilization of LNG procurement through long-term contracts and reduction of raw material costs by curbing spot market procurement
- Expansion of the business base through the consolidation of Kyodo Kaihatsu Co., Ltd. and Kyowa Real Estate Co., Ltd. as subsidiaries
Risks
- Risk of downward adjustment of gas sales unit prices under the raw material cost adjustment system (affecting net sales also in Q1 FY2026)
- Risk of continued decline in gas sales volume across all usage categories (residential down 4.5%, commercial down 6.4%, industrial down 1.7%)
- Risk of rising LNG prices and spot market prices, and geopolitical risk
- Long-term risk of declining natural gas demand due to the promotion of carbon neutrality
- Risk of intensifying competition due to deregulation of the electricity and gas markets
- Foreign exchange risk and resource price fluctuation risk associated with the investment (US$100 million) in MOE
- Foreign exchange risk and resource price fluctuation risk in the U.S. Shale Gas Development Business
Last updated: March 25, 2026