ENEOS (5020) Q2 2026 earnings summary

Executive summary

• Operating profit for H1 FY2025 was JPY 166.7 billion, including a negative inventory valuation impact of JPY 106.8 billion; excluding this, operating profit rose to JPY 273.5 billion, up JPY 65.3 billion year-on-year.

• Profits rose due to improved petroleum product margins and a one-time gain from the sale of the maritime transportation business, offsetting declines in Oil & Gas E&P from lower oil prices and yen appreciation.

• Revenue for H1 FY2025 was ¥5,691,922 million, down 5.3% year-over-year.

• Profit attributable to owners of the parent was ¥64,754 million, with basic profit per share at ¥24.07.

• Total comprehensive income increased to ¥76,492 million from ¥66,523 million year-over-year.

Financial highlights

• Operating profit excluding inventory valuation for petroleum products business increased by JPY 123.4 billion year-on-year to JPY 178.1 billion, driven by margin improvements and a JPY 76.7 billion one-time gain.

• Oil and natural gas E&P operating profit declined by JPY 19.4 billion year-on-year to JPY 27.3 billion.

• High-performance materials business operating profit rose by JPY 0.3 billion to JPY 9.4 billion; electricity business profit increased by JPY 4.5 billion to JPY 18.7 billion.

• Free cash flow for H1 was ¥211.3 billion; operating cash flow for Q2 was JPY 334.3 billion.

• Gross profit increased to ¥488,687 million from ¥469,926 million year-over-year.

Outlook and guidance

• Full-year operating profit forecast revised to JPY 290 billion, down JPY 70 billion from May, reflecting lower oil prices and inventory valuation.

• Operating profit excluding inventory valuation forecasted at JPY 420 billion, up JPY 10 billion from May; profit attributable to owners of parent (excluding inventory valuation) projected at JPY 225 billion.

• FY2025 full-year profit attributable to owners of the parent forecast at ¥135 billion, down ¥50 billion from May outlook.

• Annual dividend for FY2025 set at JPY 34 per share, up JPY 4 from May and JPY 8 year-on-year.

• Basic profit per share is forecast at ¥50.19.