Japan’s Tokyo Gas on Thursday posted a 45% increase in first-half net profit on the back of higher-than-expected sales of gas and power and raised its full-year profit forecast 15% to reflect the bumper results.

Net profit reached a record 104 billion yen ($690 million) for the six months through September and the company raised its full-year forecast to 116 billion yen from 101 billion set in July.

Behind the healthy result was stronger than expected gas sales resulting from price hikes to reflect higher fuel costs a few months earlier, while procurement costs fell, boosting so-called “time-lag profit,” Hirofumi Sato, chief financial officer, told a news conference.

“The significant factor was strong profit of electricity, especially during the summer months,” he added. “Thanks to higher oil prices and weaker yen against the U.S. dollar, we now expect bigger gains from our overseas assets.”

The company revised its full-year assumptions for the oil price to $86.76 a barrel from $81 and for the exchange rate to 143.03 yen per dollar from 135.62 yen.

Sato said the negotiations on the planned sale of its stake in natural gas projects in Australia were ongoing and it looked possible to close the deal by the end of March.

Asked about the impact on its procurement of liquefied natural gas (LNG) resulting from the Israel-Hamas war, Sato said the company expects no direct impact as there is little trade from the region.

Tokyo Gas has been receiving the fuel from Australia as scheduled despite labour strikes at Chevron’s facilities in Australia, Sato said.
Source: Reuters (Reporting by Katya Golubkova and Yuka Obayashi; Editing by Varun H K and David Holmes)