ENEOS (5020) investor relations material

Executive summary

• Q1 FY2026 operating profit surged to JPY 482.6 billion, driven by recovery in refinery operations, robust overseas markets, and strong performance in Petroleum Products.

• Revenue increased 18.7% year-over-year to JPY 3,407.8 billion, with profit attributable to owners of the parent reaching JPY 415.0 billion, reversing a prior-year loss.

• Announced acquisition of 100% of TPC Holdings, a major U.S. C4 chemical producer, to become the world’s third-largest butadiene producer and expand presence in high-performance materials.

• Streamlined group structure by reducing the number of group companies by 15 in Q1, targeting a total reduction of about 100 to improve governance and ROIC.

• Maintained stable domestic energy supply despite disruptions in the Strait of Hormuz by diversifying procurement and using reserves.

Financial highlights

• Revenue rose to JPY 3,407.8 billion (+19%), operating profit to JPY 482.6 billion (+859%), and profit before tax to JPY 477.7 billion (+976%) year-over-year.

• Operating profit excluding inventory valuation effects was JPY 287.4 billion, up 113% year-over-year.

• Profit attributable to owners of the parent reached JPY 415.0 billion, reversing a prior-year loss.

• Gross profit increased to JPY 645.4 billion from JPY 187.3 billion year-over-year.

• Total assets grew to JPY 9,625.9 billion as of June 30, 2026.

Outlook and guidance

• Full-year outlook maintained due to ongoing uncertainty in the Middle East; FY2026 revenue forecast is JPY 12,850 billion, with operating profit projected at JPY 610 billion (up 30.7% year-over-year).

• Profit attributable to owners of the parent is forecast at JPY 415 billion, with basic profit per share of JPY 155.72.

• Targeting 90% refinery utilization rate by FY2027, up from 84% in Q1.