ENEOS Holdings, Inc.
5020・Prime Market・Oil & Coal Products
Petroleum Products and Others
The largest petroleum refining and sales segment forming the revenue base of the ENEOS Group
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue (full year) | ¥10,395,319 million | ¥10,979,695 million | ↓ |
| Operating income (full year) | ¥292,362 million | -¥50,705 million | ↑ |
| Operating income equivalent excluding inventory valuation effects (full year) | ¥300,200 million | ¥6,900 million | ↑ |
| Inventory valuation effects (full year) | -¥7,800 million (loss) | -¥57,600 million (loss) | ↑ |
| Impairment loss (full year) | ¥26,877 million | ¥172,899 million | ↑ |
| Capital expenditures | ¥319,155 million | ¥175,621 million | ↑ |
| Segment assets | ¥5,938,078 million | ¥5,621,315 million | ↑ |
Business Details
Centered on ENEOS Corporation, this segment handles petroleum refining and sales, basic chemicals, and lubricants, gas & hydrogen. It holds the largest fuel oil sales share in Japan and is the largest segment, accounting for approximately 88% of Group revenue. As part of its response to the energy transition, the segment is also engaged in next-generation energy businesses such as SAF (Sustainable Aviation Fuel), synthetic fuels, and hydrogen. Its earnings structure is significantly affected by inventory valuation effects (inventory valuation based on the total average method and write-downs to book value).
Recent Overview
Operating income shifted to a large profit from the prior-period loss, driven by a substantial reduction in inventory valuation effects and improved refinery utilization rates
In the Petroleum Products and Others segment for FY2026 (ending March 2026), revenue decreased 5.3% year on year to ¥10,395,319 million, while operating income increased ¥343,067 million year on year to ¥292,362 million, marking a substantial swing to profit. This was driven by a significant reduction in inventory valuation losses, from ¥57,600 million in the prior period to ¥7,800 million in the current period, along with improved refinery utilization rates (86% in Q4 excluding the impact of Middle East conditions, up from 77% in the same period of the prior year) and agile export responses for products. In addition, a gain on sale was recognized from the transfer of ENEOS Ocean's marine transport business (excluding crude oil tankers) to NYK Energy Ocean Corporation, with an 80% stake transferred. Amid escalating tensions in the Middle East, the crude oil procurement environment has been affected, and the Company is responding through measures such as utilizing national reserves, diversifying procurement sources, and emergency procurement.
Key Products
Growth Drivers
- Strengthening earnings power through maximizing refinery utilization rates (fundamental reform of maintenance operations through improved maintenance planning, enhanced inspections, and establishment of the "E-MORE Project Office" utilizing AI/DX)
- Diversification of revenue sources through the launch of next-generation low-carbon energy businesses such as SAF, green methanol, and biofuels
- Capturing global earnings opportunities through expansion of overseas fuel oil business, including trading
- Optimization of sales composition through thorough profitability-focused sales and agile product export responses tailored to overseas market conditions
- Improvement in petrochemical product margins driven by favorable paraxylene market conditions (such as the removal of import restrictions in India)
Risks
- Inventory valuation effects due to crude oil price and foreign exchange fluctuations significantly affecting earnings (a loss of ¥7,800 million in the current period, versus a loss of ¥57,600 million in the prior period)
- Increasing uncertainty in the crude oil procurement environment amid escalating tensions in the Middle East
- Long-term structural decline in domestic petroleum product demand, mainly due to improved vehicle fuel efficiency and EV adoption
- Risk of margin deterioration in petrochemical products (such as benzene) due to market fluctuations and U.S. tariff measures
- Risk of petroleum refining facilities becoming stranded assets amid the accelerating energy transition
Last updated: June 23, 2026