[Company analysis] JXTG Holdings (JXTGホールディングス)

「JXTG Holdings (JXTGホールディングス)」 has outpaced「Idemitsu Kosan Co., Ltd.」currently, so they are now said to be the Japan's largest essential oil company. However, in fact, this company was formed by merger of the  10 essential oil companies. Thieir main business is oil refining and sales of petroleum products, and it is one of the top 10 on a global scale. The number of consolidated employees is approximately 40,695.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	JXTG Holdings
Company name (Japanese)	JXTGホールディングス
Date of establishment	Thursday, April 1, 2010
Headquarters location	東京都千代田区大手町一丁目1番2号
Capital	100,000
Consolidated sales	11,129,630
Consolidated operating profit	537,083
Consolidated total assets	8,477,811
Consolidated capital	3,119,816
Capital adequacy ratio	36.8%
Consolidated number of employees	40,695

 

 

 

2. Summary and Features

 
「JXTG Holdings 」was established in 2015, by business integration between「Nippon Oil Corporation(新日本石油株式会社) 」which had the top market share in the Japanese market as a major oil refining and sales company, and「Nippon Mining Holdings(新日鉱ホールディングス)」which was sixth in the market share at that time. By this business integration, 「JXTG Holdings」became one of the Japan's largest scale company after「Toyota Motor Corporation(トヨタ自動車)」, 「Mitsubishi Corporation(三菱商事)」, 「Hitachi, Ltd.(日立製作所)」 and sixth largest company in world oil industry.

Behind this business integration, there were various problems such as a recession caused by the financial crisis and a decrease in demand for petroleum products due to environmental problems, and it was clear that those problems could not solved out by strengthening production or sales capabilities. In particular, the Japan domestic oil market was in a decreasing trend due to the effects of global warming, low births, and aging society problem. So, to survive with this circumstances, 「Nippon Oil Corporation」 and「Nippon Mining Holdings」decided to business intergration.

As a result,「JXTG Holdings 」got a top share in Japan of 34%. In addition to petroleum-related businesses such as petrochemicals, electric power, and lubricants, they also engaged in development-related businesses like entire natural gas business, from the exploration of oil and gas layers to the final shipment of natural gas and petroleum products.

This company also supply resources and materials like copper. With the oil and natural gas development business that was mentioned above, they can handle everything from exploration, mining and refining of ores to metal processing, production and sales of electronic material products, and recycling of resources. In other words, 「JXTG Holdings」are developing our business in all processes from upstream to downstream.

 

 

 

3. Major Business

 

■ Energy business

■ Oil and natural gas development business

■ Metal business

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		7,025,062	10,301,072	11,129,630
Consolidated operating profit		271,138	487,546	537,083
Consolidated total assets		6,792,892	8,457,555	8,477,811
Consolidated net assets		2,140,288	2,919,975	3,119,816
Breakdown of sales	Energy business	5,579,934	8,695,164	9,475,637
	Oil and natural gas development business	144,443	155,784	149,243
	Metal business	868,954	965,993	1,039,312
	Others	431,731	484,131	465,438