OREANDA-NEWS. Gas sales volume for the third quarter of FY2015 (April 1 - December 31, 2015) decreased 0.2% year-on-year, to 10,833 million m3.

This slight decrease was mainly caused by a reduction in residential and commercial demand in line with lower demand for hot water supply and air conditioning affected by higher temperatures in winter than in the year-earlier, which could not be fully offset by an improvement in industrial demand especially from new consumers.

Sales unit prices under the gas rate adjustment system declined due to the drop in crude oil prices, resulting in an 18.0% decrease in city gas sales to JPN 918.0 billion. In addition to this decrease in city gas sales, sales of other energy (electric power generation etc.) declined, leading to a 15.2% decrease in consolidated net sales, to JPN 1,339.9 billion.

In line with efforts to further increase management efficiency and reduce expenses to the maximum extent possible, lower gas resource costs mainly caused by drop in crude oil prices, combined with a decrease in expenses at the other energy segment, resulted in a 20.5% decrease in operating expenses, to JPN 1,211.4 billion. As a result, operating income increased 126.3 % year-on-year, to JPN 128.4 billion, and ordinary income was 143.6% higher, to JPN 125.3 billion.

Net income attributable to the parent company increased 108.8%, to JPN 78.9 billion after the recording of extraordinary loss (impairment loss on overseas upstream projects of JPN 19.1 billion) and income taxes. Because the city gas business accounts for the majority of consolidated net sales, seasonal fluctuations at the business from factors including average temperatures may have a significant impact on net sales.