TextSize
  • default
  • large
  • Japanese
  • Chinese

Message from the Management

Shunichi Kito, Representative Director & Chief Executive Officer

I would like to take this opportunity to express my appreciation to our shareholders and investors for their loyal support. Our financial results for the second quarter (April 1, 2018 to September 30, 2018) of fiscal 2018 as well as our full-year forecast for the term are as follows.

Consolidated Financial Results for the Second Quarter (April 1 to September 30) of Fiscal 2018

In the second quarter, Idemitsu recorded an increase in sales and profits. Idemitsu posted consolidated net sales of ¥2,114.0 billion (up ¥416.6 billion from the same period of the previous fiscal year), operating income of ¥133.7 billion (up ¥47.6 billion), ordinary income of ¥153.8 billion (up ¥64.2 billion) and net income attributable to owners of the parent of ¥103.5 billion (up ¥46.1 billion).

During the interim period, sales increased due to such factors as a rise in sales prices of petroleum products. Operating income increased due to a rise in margins on petroleum products and higher prices for natural resources.

For further information on business results, please refer toConsolidated Financial Results for the Second Quarter of Fiscal Year 2018 and Presentation on Results for the 2nd Quarter FY2018 on our website.

Full-Year Forecast for Fiscal 2018

We maintain our full-year consolidated earnings forecast for fiscal 2018 announced on August 14 and anticipate net sales of ¥4,280.0 billion (up ¥549.3 billion from the previous fiscal year), operating income of ¥220.0 billion (up ¥18.7 billion), ordinary income of ¥250.0 billion (up ¥23.7 billion) and net income attributable to owners of the parent of ¥140.0 billion (down ¥22.3 billion).

Shareholder Returns

Interim dividends per share were ¥50 because of our solid business results. Also, Idemitsu intends to pay year-end cash dividends per share of ¥50 and for the entire fiscal year plans to pay cash dividends per share of ¥100, representing a ¥20 per share increase above the previous fiscal year. As of November 2018, Idemitsu acquired 10,430,000 treasury shares (¥54.9 billion).

Regarding Business Integration with Showa Shell Sekiyu K.K.

Idemitsu and Showa Shell Sekiyu K.K. (Showa Shell) continued discussions based on the Business Integration Agreement concluded in July 2018 and concluded a Share Exchange Agreement in October 2018. Accordingly, based on the assumption of approvals at extraordinary shareholders' meetings to be held by both companies in December 2018, Idemitsu will implement a share exchange on April 1, 2019 (scheduled), in which Idemitsu will acquire all of the issued shares of Showa Shell and the business integration will be realized.

Both companies intend to reinforce their enterprise value by implementing the Business Integration, in the short term, by maximizing synergies and aiming to create an entity with industry-leading competitiveness, and in the medium to long-term, by evolving into a resilient corporate entity through promoting the optimization of their business structure and their environment, social and governance initiatives.

For details, refer to Idemitsu's October 16, 2018 press release Announcement Regarding Execution of Share Exchange Agreement and Business Integration.

Since its foundation, Idemitsu has been practicing the concept of "respect for human beings" in the conduct of business, and has sought to be a company that meets the high expectations of society and earns its trust. Under this philosophy, Idemitsu will continue to contribute to the development of a society that maintains harmony between the economy and the environment. In doing so, I ask our shareholders and investors for their continued understanding and support.


Shunichi Kito

Shunichi Kito
Representative Director & Chief Executive Officer
Idemitsu Kosan Co.,Ltd.

Back to top