Fuji Oil : Mar. 02，2022 Consolidated Financial Results for the Nine Months Ended December 31, 2021 (Under Japanese GAAP) （424KB）

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

Consolidated Financial Results for the Nine Months Ended December 31, 2021

(Under Japanese GAAP)

February 10, 2022

Company name:	Fuji Oil Company, Ltd.
Listing:	Tokyo Stock Exchange
Securities code:	5017
URL:	http://www.foc.co.jp/
Representative:	Shigeto Yamamoto, Representing Director, President
Inquiries:	Ryuji Suzuki, General Manager, General Administration Department
Telephone:	[phone]

Scheduled date to file quarterly securities report:	February 14, 2022
Scheduled date to commence dividend payments:	-
Preparation of supplementary materials on quarterly financial results:	Yes (Japanese only)
Holding of quarterly financial results briefing:	No

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the nine months ended December 31, 2021 (from April 1, 2021 to December 31, 2021)

(1) Consolidated operating results (cumulative)		(Percentages indicate year-on-year changes.)
Net sales	Operating profit	Ordinary profit	Profit attributable to
owners of parent
Millions of yen	% Millions of yen	% Millions of yen	% Millions of yen	%

For the nine months ended December 31, 2021

For the nine months ended December 31, 2020

315,979	21.1	5,181	1.2	4,824	(16.2)	5,461	27.7
260,972		5,118		-		5,758		-		4,277		-
(23.8)

(Note)	Total comprehensive income:
	For the nine months ended December 31, 2021: 7,023 million yen (84.6%)
	For the nine months ended December 31, 2020: 3,805 million yen (-%)
	Basic earnings	Diluted
	earnings
	per share
	per share
	Yen -	Yen -

For the nine months ended December 31, 2021

For the nine months ended December 31, 2020

(2) Consolidated financial position

70.87-

55.51-

	Total assets	Net assets	Equity-to-asset ratio
	Millions of yen	Millions of yen	%
As of December 31, 2021	324,987	54,439	16.7
As of March 31, 2021		253,007	48,188	19.0
(Reference) Equity: As of December 31, 2021:	54,267 million yen
As of March 31, 2021:	48,031 million yen

2. Cash dividends

					Annual dividends per share
				First quarter-	Second quarter-	Third quarter-	Fiscal year-end		Total
				end	end	end
				Yen -	Yen -	Yen -	Yen -		Yen -
Fiscal year ended March 31,	-	0.00	-	10.00	10.00
2021
Fiscal	year	ending	March	-	0.00	-
31, 2022
Fiscal	year	ending	March				-		-
31, 2022 (Forecast)
(Note)	Revisions to the forecast of cash dividends most recently announced: None
	At present, the year-end dividend for the fiscal year ending March 31, 2022 has not been determined.

3. Consolidated financial results forecast for the fiscal year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)

(Percentages indicate year-on-year changes.)

				Net sales			Operating profit		Ordinary profit	Profit attributable to	Basic earnings
							owners of parent	per share
				Millions of yen	%		Millions of yen	%		Millions of yen	%		Millions of yen	%		Yen -
	Full year		470,500		36.5		5,800		(18.3)		5,100		(38.5)		5,400		(17.3)		70.07
(Note)	Revisions to the forecast of the financial results most recently announced: Yes

*Notes

(1)	Changes in significant subsidiaries during the nine months ended December 31, 2021	:	None
(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial	:	None
statements
(3)	Changes in accounting policies and accounting estimates, and restatement
	(i) Changes in accounting policies due to revisions to accounting standards and other regulations	:	Yes
	(ii) Changes in accounting policies due to reasons other than (i)	:	None
	(iii) Changes in accounting estimates	:	None
	(iv) Restatement	:	None

(4) Number of issued shares (common shares)
(i) Total number of issued shares at the end of the	As of	78,183,677 shares	As of	78,183,677 shares
period (including treasury shares)	December 31, 2021	March 31, 2021
(ii) Number of treasury shares at the end of the	As of	1,121,198 shares	As of	1,121,198 shares
period	December 31, 2021	March 31, 2021
(iii) Average number of shares outstanding during	As of	77,062,479 shares	As of	77,062,479 shares
the period (quarterly cumulative)	December 31, 2021	March 31, 2021

• Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
• Proper use of earnings forecasts, and other special matters

The forward-looking statements such as financial results forecasts contained in this document are based on information currently available to the Company and certain assumptions deemed to be reasonable. Actual financial results may differ significantly from the forecasts due to various factors. For the assumptions underlying the financial results forecasts and cautions concerning the use thereof, please refer to "Explanation of Consolidated Earnings Forecasts and Forward-Looking Statements" on page 2 of the attachment.

○Table of Contents of Attachment
1. Qualitative Information on Financial Results for the First Nine Months of the Current Fiscal Year .........................................	2
(1)	Explanation of Operating Results......................................................................................................................................	2
(2)	Explanation of Financial Position......................................................................................................................................	2
(3)	Explanation of Consolidated Financial Results Forecasts and Other Forward-Looking Statements .................................	2
2. Quarterly Consolidated Financial Statements and Significant Notes Thereto ...........................................................................	4
(1)	Quarterly Consolidated Balance Sheet ..............................................................................................................................	4
(2)	Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income............	6
(3)	Notes to Quarterly Consolidated Financial Statements .....................................................................................................	8
	(Notes on Going Concern Assumptions)...........................................................................................................................	8
	(Notes on Substantial Changes in the Amount of Shareholders' Equity) ..........................................................................	8
	(Changes in Accounting Policies) .....................................................................................................................................	8
	(Additional information)...................................................................................................................................................	8
	(Segment Information, etc.) ..............................................................................................................................................	8

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1. Qualitative Information on Financial Results for the First Nine Months of the Current Fiscal Year

1. Explanation of Operating Results

In the first nine months ended December 31, 2021, the Dubai crude oil price hovering at the level of $61 per barrel at the beginning of the fiscal year reached the $75 level in early July on an upward trend due to expectations of economic recovery underpinned by the rollout of COVID-19 vaccinations in the United States and Europe since April, among other factors. The price subsequently fell to the $65 level over concerns about the global spread of the Delta variant of COVID-19; however, the price turned upward against the backdrop of a major hurricane approaching oil production facilities along the U.S. Gulf Coast and tighter supply and demand caused by supply disruptions from some oil-producing countries, and reached the $84 level in late October. Nevertheless, in late November, there were signs of another price adjustment due to a risk aversion move induced by the spread of a new COVID-19 variant, Omicron. However, the market subsequently recovered and ended the quarter at the $77 level, underpinned by extremely resilient economic recoveries, especially in the U.S., and the underlying robust energy demand. As a result, the average Dubai crude oil price during the first nine months ended December 31, 2021 was approximately $72.

On the other hand, the exchange rate started at the higher ¥110 rage per dollar and temporarily got appreciated, hitting the mid- ¥107 range due in part to the U.S. interest rate hike being put on hold. Still, the exchange rate subsequently got further weakened, reaching the higher ¥111 range as the FOMC noted the possibility of an early interest rate hike. Entering November, the yen weakened to the mid-¥115 range against the backdrop of growing concerns over inflation in the U.S. and the FRB's quantitative easing. In December, despite reverting to the higher ¥112 level at times in response to cautionary sentiment about the Omicron strain, the yen depreciated to ¥115 yen toward the end of the month due to the robust trend of the U.S. stock market and other factors. The trade as of the end the first nine months of the current fiscal year closed at approximately ¥115. As a result, the average exchange rate during the first nine months of the current fiscal year was at the lower ¥111 range.

In such a business environment, the Company carried out major periodic shut-down maintenance, which is conducted once every four years, from May through July. Crude oil throughput at Sodegaura Refinery plant decreased by 1.029 million kiloliters from the same period of the previous fiscal year to 4.240 million kiloliters, and the Company's sales volume of petroleum products and petrochemical products decreased by 1.105 million kiloliters to 4.406 million kiloliters.

Given such circumstances, the consolidated financial results for the first nine months ended December 31, 2021, were as follows. Net sales increased 55.0 billion yen year on year to 315.9 billion yen, mainly due to higher unit sales prices associated with higher crude oil prices, despite a decrease in sales volume due to the major periodic shut-down maintenance. As for profit, operating profit was 5.1 billion yen (an increase of 0.0 billion yen year on year) due to the effect of inventory valuation (effect of inventory valuation calculated by using the average method and the influence of inventory write-downs based on decrease in profitability on cost of sales), which drove down the cost of sales by 12.4 billion yen (down 5.0 billion yen in the same period of the previous fiscal year). Ordinary profit was 4.8 billion yen, down 0.9-billion-yen year on year. Profit attributable to owners of parent was 5.4 billion yen, up 1.1 billion yen year on year.

As for profit in real terms, excluding the effect of the inventory valuation, operating loss amounted to 7.2 billion yen, a decrease of 7.3 billion yen year on year, and ordinary loss was 7.6 billion yen, a decrease of 8.3 billion yen year on year, due to the impact of the major periodic shut-down maintenance and other factors.

(2) Explanation of Financial Position

(Current assets)

At the end of the third quarter of the fiscal year under review, current assets totaled 196.8 billion yen, an increase of 63.3 billion yen compared with the end of the previous fiscal year. This was mainly due to a 50.6 billion yen increase in notes and accounts receivable - trade, and contract assets and a 19.6 billion yen increase in inventories.

(Non-current assets)

At the end of the third quarter of the fiscal year under review, non-current assets increased 8.6 billion yen compared with the end of the previous fiscal year to 128.1 billion yen. This was mainly due to a 7.4 billion yen increase in machinery, equipment and vehicles, and a 1.7 billion yen increase in investment securities.

(Current liabilities)

At the end of the third quarter of the fiscal year under review, current liabilities totaled 227.8 billion yen, an increase of 70.5 billion yen compared with the end of the previous fiscal year. This was mainly due to a 45.3 billion yen increase in short- term loans payable, an 18.6 billion yen increase in accounts payable, and a 10.4 billion yen increase in excise taxes payable on gasoline and other fuels.

(Non-current liabilities)

At the end of the third quarter of the fiscal year under review, non-current liabilities totaled 42.6 billion yen, a decrease of

4.8 billion yen compared with the end of the previous fiscal year. This was mainly due to a 6.9 billion yen decrease in provision for repairs and a 1.2 billion yen increase in long-term loans payable.

(Net assets)

At the end of the third quarter of the fiscal year under review, net assets increased 6.2 billion yen compared with the end of the previous fiscal year to 54.4 billion yen. This was mainly due to a 4.6 billion yen increase in retained earnings and a 1.6 billion yen increase in foreign currency translation adjustments.

(3) Explanation of Consolidated Financial Results Forecasts and Other Forward-Looking Statements

The financial results forecasts (announced on November 10, 2021) are revised to reflect the trend of financial results after November 10, 2021.

The assumptions for the revised forecast are an average Dubai crude oil price of $75 per barrel for the fourth quarter (previous forecast: $70 per barrel) and an exchange rate of $1:¥110 (previous forecast: $1:¥110).

Net sales are expected to increase by 30.4 billion yen from the previous forecast to 470.5 billion yen.

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As for profit, the Company expects a more substantive effect on lowering the cost of inventory due to the increase in the forecast crude oil price. As a result, operating profit is expected to increase by 2.2 billion yen from the previous forecast to 5.8 billion yen, ordinary profit by 2.6 billion yen to 5.1 billion yen, and profit attributable to owners of parent by 2.1 billion yen to 5.4 billion yen.

Excluding the effect of inventory valuation, operating loss is expected to be 6.9 billion yen, a decrease of 2.3 billion yen from the previous forecast, and ordinary loss is expected to be 7.6 billion yen, a decrease of 1.9 billion yen from the previous forecast. The above forecasts are based on information available as of the date of publication of this document. Actual results may differ from the forecasts due to various factors.

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