Consolidated Performance

The fiscal year ended March 31, 2021, saw a return to profitability from the previous year due to the effects of inventory valuation, despite a reduction in sales volume due to the spread of COVID-19.

In the business results for the fiscal year ended March 31, 2021, profit attributable to owners of parent increased by 35.5 billion yen from the previous year to a profit of 6.5 billion yen despite a decrease in sales due to the effects of a fall in demand caused by the spread of COVID-19. Major factors were the positive effects of inventory valuation driven by an increase in oil prices which pushed down the cost of sales by 8.7 billion yen, as well as the recovery of the domestic product market.

 

 

 

On October 1, 2013, we merged our wholly-owned subsidiary, Fuji Oil Company, Ltd. with and into our company and changed our name from AOC Holdings to Fuji Oil. The Group now trades under the Fuji Oil name.

 

To mark the start of our new operating structure, we have formulated a new Corporate Philosophy and Group Management Policy that incorporate the management principles and spirit of both AOC Holdings and the former Fuji Oil Company.

 

Guided by this philosophy and policy, we designate the three-year period from FY2014 to FY2016 as one in which the new FOC will secure a stable revenue base and mark its first step as a newly-born energy company. This medium-term business plan is drawn up as a guidepost to achieve these objectives.

Forecast for the Fiscal Year Ending March 31, 2022

We expect a decrease in profit due to the effects of major periodic shut-down maintenance

In the fiscal year ending March 31, 2022, we are forecasting a decrease in profit due to major periodic shut-down maintenance carried out from May to July 2021, with operating profit of 2.7 billion yen, ordinary profit of 1.9 billion yen, and profit attributable to owners of parent of 1.7 billion yen.

We are also expecting operating loss excluding the effect of inventory valuation of 0.5 billion yen and ordinary loss excluding the effect of inventory valuation of 1.3 billion yen.

Future Business Development

Third Medium-Term Business Plan

Taking into account the increasingly severe business environment and Japan’s move toward becoming carbon neutral by 2050, we have set our long-term management direction for 2050 as follows:

 

▪Sodegaura Refinery will continue to be an important base of value creation to fulfill the mission of stable supply of energy.

 

▪Recognizing that it is our social responsibility as well as the most important management issue for the future of our company to contribute to a low-carbon/recycling-oriented society, we will become a company that supplies carbonneutral energy and oil products that reduce the amount of CO2 emissions generated during production.

 

Business circumstances surrounding the oil refining industry are becoming more challenging year by year due to factors such as declining domestic oil demand, and Japan’s move to become carbon neutral by 2050 is entering full swing. To expand earnings stably and reduce environmental burden under these circumstances, we have set two basic policies for our Medium-Term Business Plan (for the four years from the fiscal year ending March 31, 2022 to the fiscal year ending March 31, 2025) that are in accordance with our long-term management direction which is outlined above. The two basic policies are: (1) reinforcing the base of the oil refining business and (2) strengthening efforts toward realizing a decarbonized society. Our main focus will be on the following challenges:

 

(1) Reinforce the base of the oil refining business

  a) Maintain and enhance operational reliability

  b) Strengthen cost competitiveness and establish a competitive advantage

 

(2) Strengthen efforts to realize a decarbonized society

  a) Thoroughly reduce the environmental burden of the refinery

  b) Pursue businesses that contribute to decarbonization

 

Going forward, we will strive to increase corporate value by continuing to fulfill our social responsibility to provide a stable supply of energy by operating the Sodegaura Refinery in a way that utilizes its location advantage and high heavy oil processing capacity, while at the same time focusing on cultivating new businesses such as businesses that contribute to decarbonization, as stipulated in our new Third MediumTerm Business Plan.

Corporate Philosophy

  • Ensure stable supplies of energy
  • Maintain safety and protect the global environment
  • Work for the benefit of all stakeholders
  • Create energetic and motivating workplaces

Group Management Policy

Maximize value for stakeholders
The Group works together to maximize the corporate value for all its stakeholders: shareholders, clients, employees and the local community.
Improve transparency of management
The Group strives to strengthen corporate governance, ensure thorough risk management and compliance, and disclose accurate information on a timely and appropriate basis.
Maintain stable operations and a solid earnings base
The Group aims to strengthen and maintain a stable earnings structure, supported by the Sodegaura Refinery with its prime location and advanced processing facilities as well as its solid client base.
Return profits to shareholders
The Group works to ensure the stable payment of dividends to shareholders while taking into account a range of factors, such as a sufficient level of internal reserves to support business expansion over the medium- and long-term, earnings performance and the cash balance.
Challenge for sustained growth
The Group strives to deliver sustained growth by steadily implementing medium-term business strategies designed to preempt changes in the business environment.

We ask for the continued support of our shareholders and investors.

Fuji Oil Company, Ltd.

Representing Director, President