[Company analysis] Idemitsu Kosan Co., Ltd. (出光興産)

「Idemitsu Kosan Co., Ltd. (出光興産)」is the second largest oil company in Japan after「JXTG Holdings, Inc.」 and operates petroleum flat foam and gas stations business. It ranks 26th in the world in the oil refining sector. In July 2018, they merged「Showa Shell Sekiyu K.K.」and made it a wholly owned subsidiary. The number of consolidated employees is approximately 8,955.

 

1. プロフィール

 

2. 概要および特徴

 

3. 主要事業

 

4. 財務情報

 

 

 

1. プロフィール

 

※単位は100万円、2018年基準

Company name	Idemitsu Kosan Co., Ltd.
Company name (Japanese)	出光興産
Date of establishment	March 30, 1940
Headquarters location	〒100-8321 東京都千代田区丸の内三丁目1番1号
Capital	168,400
Consolidated sales	4,425,144
Consolidated operating profit	179,319
Consolidated total assets	2,890,307
Consolidated capital	878,931
Capital adequacy ratio	30.4%
Consolidated number of employees	8,955

 

 

 

 

2. 概要および特徴

 

「Idemitsu Kosan」was founded in 1911, in the Moji area of ​​Fukuoka Prefecture and has been involved in oil distribution since its founding. After successful business in Japan,「Idemitsu Kosan」aims to expand their business area to China, competting with European companies. However, in 1932, when the Japanese troops attacked the Manchuria area, all oil trade was placed under the control of the Japanese government.

 

With the end of World War II,「Idemitsu Kosan」 lost all overseas trade lines in Asia. Instead, they searched for new directions, such as importing naphthalene from the United States and expanding into Venezuela and Iran. Then, during the period of high economic growth in Japan, it will grow exponentially, but by the end of 1990, Japan's domestic oil demand began to decline, creating a new crisis.

Since the oil industry is an industry where product differentiation is extremely difficult and large equipment is directly linked to competitiveness, other Japanese oil companies have been increasing their competitiveness through repeated mergers. On the other hand,「Idemitsu Kosan」was the only oil company in Japan that did not conduct M&A. However, they eventually merge with「Showa Shell Sekiyu K.K.」 in July 2018. 

One of the characteristics of「Idemitsu Kosan」is that they also carry out chemical-related businesses. this company began to develop OLED technology in the 1980s to diversify its business, because they  felt danger due to the numerous oil shocks. In the latter half of the 1990s, they succeeded in developing a full-color LED display for practical use. And this technology is currently used in "Samsung Electronics" smartphone products.

 

 

 

3. 主要事業

 

■ Gas station related
This company operates approximately 5,250 gas stations.

■ Petrochemical products
「Idemitsu Kosan」operate two petrochemical plants located in Chiba and Tokuyama. They produce various basic chemical products for the Japanese and overseas chemical industries. 

■ Energy business
In addition to selling gasoline, they also sell industrial energy to electric power companies, general companies, airlines, and shipping companies. this company are also actively engaged in the renewable energy business.

■ Resource business
they promoting oil, natural gas exploration, development and production projects mainly in Norway, the United Kingdom and Vietnam.

■ High-performance materials business
Based on molecular design and precision organic synthesis technology, they are developing high value-added material products used for machines and PCs. this company also develop and sell biological and chemical pesticides centered on biotechnology.

 

 

 

4. 財務情報

 

※単位は100万円、2018年基準

		2016	2017	2018
Consolidated sales		3,190,347	3,730,690	4,425,144
Consolidated operating profit		135,234	201,323	179,319
Consolidated total assets		2,641,633	2,920,265	2,890,307
Consolidated net assets		619,932	905,929	878,931
Breakdown of sales	Petroleum products business	2,438,225	2,870,802	3,488,938
	Petrochemical products business	461,212	500,664	555,405
	resource business	227,303	289,386	307,976
	Others	63,605	69,837	72,824