ENEOS revises full-year forecasts, raises dividends despite lower oil prices

ENEOS Holdings has revised its consolidated financial forecast for the fiscal year ending March 31, 2026, lowering its sales revenue forecast to JPY 11,400,000m from JPY 11,700,000m and its operating profit to JPY 290,000m from JPY 360,000m. This revision is primarily due to a lower crude oil price assumption (Dubai crude at $65/barrel from $75/barrel) and a weaker yen ($/JPY 150 from $/JPY 140), resulting in an expected JPY 130,000m inventory loss. However, operating profit excluding inventory impacts is projected to increase to JPY 420,000m, a JPY 100,000m improvement from the previous forecast.

Amidst these adjustments, the company announced an increase in its interim dividend forecast to JPY 17.00 per share from JPY 15.00, with a total dividend payment of JPY 45,890m. The year-end dividend forecast was also raised to JPY 17.00 per share, resulting in an annual dividend of JPY 34.00 per share, an increase of JPY 4.00 from the previous forecast. This decision reflects a positive outlook on the company's financial performance, supported by robust progress in the second quarter.

The second-quarter consolidated results show sales revenue of JPY 5,691,922m, an operating profit of JPY 166,738m, and profit attributable to owners of the parent of JPY 64,754m. Operating profit, excluding inventory impacts, reached JPY 273,500m, indicating resilience in core operations despite the challenging market environment.