TOKYO GAS Co ( (TKGSF) ) has realeased its Q2 earnings. Here is a breakdown of the information TOKYO GAS Co presented to its investors.
Tokyo Gas Co., Ltd. is a major Japanese utility company primarily engaged in the supply and distribution of natural gas, electricity, and related services to residential, commercial, and industrial customers across Japan.
In its latest earnings report for the second quarter ending September 30, 2024, Tokyo Gas reported a decrease in its financial performance compared to the previous year. The company witnessed a decline in net sales, operating profit, and profit attributable to owners of the parent, reflecting challenging market conditions and fluctuations in resource costs.
The company reported net sales of 1,221,494 million yen, down 4% year-on-year, while operating profit plunged by 70.5% to 38,231 million yen due to increased raw material costs. Ordinary profit and profit attributable to owners of the parent dropped significantly by 80.6% and 83.5%, respectively, highlighting the impact of higher crude oil prices and reduced demand from residential gas customers. Despite these challenges, the company managed to increase its number of customers for both city gas and electric power retail sales.
Looking forward, Tokyo Gas anticipates a modest recovery in its city gas sales volume, projecting a slight increase for the fiscal year ending March 31, 2025. The company maintains a cautious outlook for its financial performance, expecting net sales to remain relatively stable while operating and ordinary profits are forecasted to decline further.
Overall, Tokyo Gas Co., Ltd. continues to navigate a challenging economic environment with strategic adjustments and a focus on maintaining its customer base while managing cost pressures effectively.