ENEOS Holdings reported operating profit of ¥706.1bn for April to September 2026, against ¥166.7bn a year earlier, on revenue of ¥6.77tn, up 19.0%. Profit attributable to owners was ¥511.9bn, compared with ¥64.8bn. The semiannual report also gives a narrower figure: operating profit excluding inventory effects was ¥443.8bn, up ¥170.3bn. The company defines the inventory effect as the impact on cost of sales of weighted-average costing and inventory write-downs.
Where the profit came from
The petroleum products segment earned ¥573.3bn in operating profit. That includes a ¥262.3bn accounting gain from inventory, against a ¥106.8bn loss a year earlier. Excluding the inventory effect, segment profit was ¥311.0bn, up ¥137.3bn.
The report attributes the underlying improvement to wider export margins, as overseas product prices rose on Middle East tensions. Sales volumes fell 9.5% because export volumes dropped as ENEOS prioritised stable domestic supply, and margins on paraxylene and benzene worsened. Dubai crude averaged $95 a barrel, $26 higher than a year earlier.
The cash flow statement is less exuberant. Operating cash flow was ¥326.3bn, against ¥334.3bn a year earlier, with the inventory build absorbing ¥540.1bn. Inventories stood at ¥2.10tn at 30 September, up from ¥1.56tn at the end of March. Reported results also include an ¥83.3bn gain on a partial sale of shares in JX Metals, an equity-method affiliate, and ¥584.2bn of government fuel-price subsidies booked in revenue, up from ¥147.8bn. ENEOS says the subsidy was passed through in full to wholesale prices.
The renewables write-down
The renewables segment swung to an operating loss of ¥111.4bn from a ¥1.1bn profit. Impairment losses in the segment totalled ¥111.8bn. Of that, ¥85.5bn hit the solar and wind cash-generating unit groups, which carried goodwill: ¥37.8bn on solar and ¥47.7bn on wind. A further ¥20.9bn wrote off projects ENEOS no longer expects to recover through cash flow or sale, and ¥5.4bn came from a plant held for sale. Group goodwill fell to ¥11.8bn from ¥74.2bn at the end of March.
The report ties the charge to the pace of decarbonisation, higher development costs and rising interest rates, which led ENEOS to tighten investment discipline and select new projects more narrowly. Pre-tax discount rates in the tests were 5.6% for solar and 6.9% for wind.
Deals: finished and pending
ENEOS completed the cash acquisition of TPC Holdings, a North American C4 chemicals group, on 26 October 2026 US time. The consideration is an estimated $758mn, subject to contractual adjustments, and the report gives no goodwill or acquired-asset values because initial accounting was not finished. ENEOS says the deal makes its butadiene capacity one of the world's top three.
| Deal | Agreed | Status in report | Disclosed terms |
|---|---|---|---|
| TPC Holdings (US) | Merger agreement 7 August 2026 | Completed 26 October 2026 (US time) | $758mn cash, estimate |
| Chevron downstream companies in five Asia-Pacific markets | Share sale and purchase agreement 14 May 2026 | No completion stated | Price not given in the note |
| Parent holding company of NIPPO (65% stake) | Share transfer agreement 23 October 2026 | Not reported as completed | Capital surplus down about ¥165bn, estimate |
| Kamisu biomass plant and its owner group | Agreements dated 21 August 2026 | Expected to close within a year of classification | ¥5.4bn impairment on held-for-sale group |
The Chevron purchase is recorded as an agreement, not a completion: a share sale and purchase agreement signed on 14 May 2026 for 100% of several Chevron downstream companies in Singapore, Malaysia, the Philippines, Australia and Indonesia. The report's note gives no price or completion date. The NIPPO step is also pending: the board agreed on 23 October to buy 65% of NIPPO's parent holding company from Goldman Sachs Group-linked vehicles, a transaction expected to cut capital surplus by about ¥165bn.