Tokyo Gas expects its net profit to double in FY26

Tokyo Gas, Japan's largest city gas provider, said that it aims to double its net profits in 2026 and has plans to expand into the United States. The plan was released in a mid-term management report on Wednesday.

The company expects its net profit to increase to 131 billion Japanese yen ($871million) for the fiscal year 2025-26, which starts on April 1. This is up from 72 billion yen in the current year that ended this March. The company expects to increase its dividend by 10 yen, or 80 yen a share, in the current fiscal.

The company also said it plans to buy back shares up to 120 billion Japanese yen during the first half fiscal year 2026.

Tokyo Gas wants to expand its shale-gas business in the United States, and increase its coordination with its liquefied gas trading. It also wants to build its LNG trading globally, primarily through Singapore and London.

The company said in a statement that "our shale-gas business is expected become a major profitability pillar by FY2025".

It plans to invest over 1.1 trillion Japanese yen, and return over 200 billion yen for shareholders in fiscal years 2026-2028. It said that the company could also sell real estate worth around 100 billion yen.

The company did not mention the activist investor Elliott Management from the United States, who bought a stake of 5.03% in Tokyo Gas. Elliott Management has also urged Tokyo Gas to sell off parts of its real estate portfolio for greater shareholder value.

Tokyo Gas shares closed down 2% in Tokyo.

(source: Reuters)