High crude prices helps sales grow at Cosmos Oil
Consolidated sales for the first six months of FY2008 (from April 1, 2008 to September 30, 2008) were ¥2,014.5 billion (up ¥413.4 billion from the same period of FY2007), operating income, ¥65.9 billion (up ¥22.4 billion), ordinary income, ¥64.2 billion (up ¥15.4 billion) and net income for the term, ¥30.5 billion (up ¥7.3 billion).
The operating results for the first six months by business segment are as follows:
The petroleum business, affected by crude oil price hikes, endeavored to maintain appropriate market conditions. But in-house fuel cost has also increased due to crude oil price hikes. The domestic sales volume reduced, centering on that of gasoline, mainly reflecting restrained consumption and industrial fuel conversion due to soaring prices of fuels.
The crude oil price, on the other hand, began to drop in August but still hovered high; this generated positive factors, such as inventory valuation impact reducing costs of sales, leading to increased profit.
The petrochemical business reported reduced profit mainly reflecting lower margins from FY2007 due to raw material price increases. As a result, the petroleum business segment reported sales of ¥1,967.7 billion for the first six months of FY2008 (up ¥403.1 billion from the same period of FY2007), operating income of ¥36.2 billion (up ¥8.1 billion) and ordinary income of ¥35.2 billion (up ¥5.3 billion).
In the oil exploration and production business segment, a lower sales volume and foreign exchange losses and other negative factors were offset by a positive factor of crude oil price hikes. The segment reported sales of ¥47.9 billion for the first six months of FY2008 (up ¥12.1 billion from the same period of FY2007), operating income of ¥29.6 billion (up ¥11.4 billion) and ordinary income of ¥29.5 billion (up ¥7.6 billion).
As a result of continued efforts for operating rationalization and management efficiency, the other business segment reported sales of ¥45.0 billion for the first six months of FY2008 (up ¥6.0 billion from the same period of FY2007), operating income of ¥900 million (up ¥100 million) and ordinary income of ¥1.0 billion (up ¥0 million).
Qualitative Information regarding Consolidated Financial Position:
Total assets as of the end of the second quarter of FY2008 (or September 30, 2008) amounted to ¥1,806.0 billion, up ¥178.1 billion from the end of FY2007 (or March 31, 2008), mainly reflecting increased inventories due to crude oil price hikes. Net assets as of September 30, 2008 were ¥493.3 billion, up ¥23.6 billion from March 31, 2008, with a net worth ratio of 25.8%.
As for consolidated cash flows as of the first six months of FY2008, net cash used in operating activities stood at ¥64.9 billion mainly reflecting an increase in inventories due to crude oil price hikes. Net cash used in investing activities stood at ¥29.7 billion mainly reflecting payments for the acquisitions of fixed assets.