Eneos Holdings, Japan’s largest oil refiner, announced its plan to increase net profit to ¥310 billion ($2.3 billion) in three years and expand its portfolio in green energy and environment-friendly fuels.
The company intends to spend ¥1 trillion over the next three years on domestic and overseas renewable energy projects, hydrogen supply chain, and sustainable aviation fuel (SAF).
In addition, Eneos is planning to launch its first SAF plant in Japan by 2026 and is considering another SAF facility by 2030. It also aims to increase renewable energy, primarily solar and wind power, from less than 1 GW to 6-8 GW by 2050.
The Japanese government and shareholders have been pressuring companies to become carbon-neutral by 2050, as the country imports most of its energy needs. Furthermore, Russia’s invasion of Ukraine has increased the urgency for a green transition for national energy security.
Although Eneos still relies on crude oil, it has committed to expanding its green energy portfolio to achieve its long-term goals. The company expects its net profit to reach ¥310 billion in the fiscal year ending in March 2026, up from ¥180 billion projected for the current 2023/24 year.
Eneos also stated that it plans to invest ¥180 billion in its oil and gas segment, including further development of liquefied natural gas in Indonesia and Papua New Guinea, and in its carbon-capture and storage business.
In other news, Eneos is preparing to list its metal unit, JX Nippon Mining and Metals, although the plans have yet to be finalized. Despite a 73% fall in net profit in the 2022/23 fiscal year to ¥143.8 billion, Eneos’ result was better than expected, sending its shares up by 5.3%.
Analysts had forecast a profit of ¥140.7 billion for the year to March 2023 and ¥188.4 billion for the current fiscal year.
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