ENEOS (5020) Q1 2026 earnings summary

Executive summary

• Q1 FY2025 operating profit was JPY 50.3 billion, down sharply year-on-year due to inventory valuation losses from lower oil prices, but underlying profit excluding inventory valuation rose, driven by higher petroleum product margins and a one-time gain from the sale of the maritime transportation business.

• Revenue for Q1 FY2025 was ¥2,870.0 billion, down 4.2%–9% year-on-year, with a net loss attributable to owners of ¥14,516 million.

• Total comprehensive loss was ¥39,593 million, compared to income of ¥192,188 million a year earlier.

• Full-year forecast remains unchanged amid ongoing uncertainties in resource prices and exchange rates.

Financial highlights

• Q1 operating profit: JPY 50.3 billion, down 67% year-on-year, mainly due to a negative inventory valuation impact of ¥122.5 billion.

• Operating profit excluding inventory valuation increased 19% to ¥135.1 billion year-on-year.

• Operating cash flow: JPY 182.4 billion inflow; free cash flow: JPY 149 billion inflow; net cash flow after dividends: JPY 72 billion inflow.

• Total assets at June 30, 2025, were ¥8,617,829 million; equity ratio attributable to owners was 34.9%.

• Basic loss per share was ¥5.40, compared to earnings of ¥27.59 per share in 1Q FY2024.

Outlook and guidance

• Full-year forecast maintained as announced in May, with revenue forecast at ¥11,700,000 million and operating profit at ¥360,000 million.

• Operating profit excluding inventory valuation factors is forecast at ¥410,000 million, up 150.5% year-on-year.

• Sensitivity analysis: a $5/bbl increase in crude oil could add ¥69 billion to operating profit, while a ¥5/$ weaker yen could add ¥40 billion.

• Dividend forecast for FY2025 is ¥30.00 per share, up from ¥26.00 in FY2024.

• Emphasis on advancing low-carbon businesses and biofuel initiatives as transitional energy sources.