ENEOS (5020) Q2 2026 earnings summary

Executive summary

• H1 FY2025 profits rose, driven by improved petroleum product margins and a one-time gain from the sale of the maritime transportation business, offsetting declines in Oil & Gas E&P due to lower oil prices and yen appreciation.

• Revenue for 1H FY2025 was ¥5,691,922 million, down 5.3% year-over-year, while operating profit surged to ¥166,738 million from ¥77,336 million, and profit before tax rose to ¥157,896 million from ¥64,874 million.

• Profit attributable to owners of the parent was ¥64,754 million, with basic profit per share at ¥24.07, up from ¥23.40 in 1H FY2024.

• Full-year operating profit outlook was revised downward due to deteriorating inventory valuation from falling oil prices, but operating profit excluding inventory valuation is expected to be higher than previous estimates.

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

Financial highlights

• H1 FY2025 revenue fell 10% year-over-year to ¥5,691.9 bn; operating profit rose 14% to ¥166.7 bn.

• Operating profit excluding inventory valuation increased 31% to ¥273.5 bn; profit attributable to owners of the parent (excl. inventory valuation) up 25% to ¥139.6 bn.

• Inventory valuation loss widened by ¥44.6 bn year-over-year.

• Full-year FY2025 revenue outlook cut by ¥300 bn to ¥11,400 bn; operating profit forecast reduced by ¥70 bn to ¥290 bn.

• Excluding inventory valuation, full-year operating profit forecast raised by ¥10 bn to ¥420 bn.

Outlook and guidance

• FY2025 revenue is forecast at ¥11,400,000 million, down 7.5% year-over-year.

• Operating profit is projected at ¥290,000 million, with profit before tax at ¥275,000 million and profit attributable to owners of the parent at ¥135,000 million.

• Basic profit per share is forecast at ¥50.19.

• Operating profit excluding inventory valuation factors is forecast at ¥420,000 million, up 156.6% year-over-year.

• Annual dividend forecast revised upward to ¥34.00 per share.