gasworld Business Intelligence provides you with the latest analysis of Taiyo Nippon Sanso’s Q3 2016 earnings report.
Headlines
- Taiyo Nippon Sanso Corp., (TNSC) adopted IFRS approach for the first time from Q1 FY2016/17, with indications of the impact of restatement on FY2015/16. Revised historic data has been included where available.
- Total reported sales in Q3 were reported to be down nearly -6% YoY at ¥135bn ($1.33bn). This appears to be the weakest reported sales growth in over five years. Excluding currency impacts, corporate sales were broadly similar to the previous year.
- Total operating income was up +22% YoY, at over ¥14bn ($135m) and similar to the average rate of profit recovery of the last two years.
- Underlying corporate operating margin on the new IFRS basis for Q3 was over 10%, appearing to be a new peak for the last five years. However, this remains significantly below the average of other major gas companies.
- Total capital employed appears to have risen again sequentially, but was still down YoY, partly due to currency.
- ROCE reported to have remained close to 8.5%.
- Latest FY2016/17 forecast lowers group sales to be down -4% on reported basis (partly due to currency), with operating income still up +6%.
- FTC approval granted for acquisition of substantial US assets divested by Air Liquide as part of their acquisition of Airgas. This business was consolidated for the first time, from September.
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