ENEOS (5020) Q1 2025 earnings summary

Executive summary

• Q1 FY2024 operating income excluding inventory valuation was JPY 113.1 billion, nearly flat year-on-year due to the absence of last year's one-off Caserones sale profit.

• Net income attributable to owners was JPY 55.2 billion, down year-on-year excluding inventory valuation; profit including inventory valuation was JPY 81.6 billion, up 78%.

• Revenue for Q1 FY2024 was JPY 3,166.3 billion, down 1.6% year-on-year.

• Results were generally in line with the full-year plan, with no change to the previously announced full-year forecast.

• Total comprehensive income rose 67.2% to JPY 192.2 billion.

Financial highlights

• Operating income excluding inventory valuation on track for full-year forecast of JPY 400 billion.

• Operating profit for Q1 FY2024 was JPY 150.8 billion, up 60.5% year-on-year, driven by positive inventory valuation effects.

• Net sales for Q1 FY2024 were JPY 3,166.3 billion, down 2% year-on-year.

• Free cash flow was negative at JPY 42.3 billion to JPY 63.2 billion, mainly due to capital investment and share buybacks.

• Net interest-bearing debt (excluding cash) was JPY 2.142 trillion, up JPY 142.1 billion from year-end.

Outlook and guidance

• Full-year operating income forecast (excluding inventory valuation) remains unchanged at JPY 400 billion.

• FY2024 revenue forecast is JPY 14,600 billion, up 5.4% year-on-year.

• Dividend forecast unchanged at JPY 22 per share for FY2024.

• Continued focus on reducing refinery troubles and ensuring stable operations.