ENEOS Holdings (5020) 4Q results: Acquires SGP refinery and Asia & Australia assets from Chevron; positive from a growth-strategy perspective

Research evidence excerpt

ENEOS Holdings (5020) 4Q results: Acquires SGP refinery and Asia & Australia assets from Chevron; positive from a growth-strategy perspective

J P M O R G A N Asia Pacific Equity Research

15 May 2026

ENEOS Holdings (5020)

4Q results: Acquires SGP refinery and Asia & Australia Overweight

assets from Chevron; positive from a growth-strategy 5020.T, 5020 JP

perspective Price (14 May 26):¥1,316

Price Target (Dec-26):¥1,600

Positive: We view the M&A transaction in petroleum refining and marketing Japan Equity Research

operations in Asia as meaningful from a medium- to long-term growth strategy

Trading Companies, Energy

perspective, as it should expand the scale of the company’s core fuel oil business

and strengthen its foundation. We also evaluate positively, from a capital efficiency Jiro Iokibe AC

standpoint, the fact that most of the acquisition funding (¥336.0 billion) will be (81-3) 6736-8668

jiro.iokibe@jpmorgan.com

covered by proceeds from the sale of JX Advanced Metals shares. JPMorgan Securities Japan Co., Ltd.

• Major acquisition aligned with strategy in current medium-term plan: On

May 14, ENEOS announced it would acquire (i) a 50% stake in the SGP

refinery (Singapore Refining Company; remaining 50% held by PetroChina)

owned by US Chevron, and (ii) fuel oil sales facilities (storage terminals and

service stations) in Singapore, Australia, Malaysia, the Philippines, Vietnam,

and Indonesia, for $2,170 million (¥336.0 billion). Management looks for

FY2030 operating profit of $250 million (approx. ¥39.0 billion) and EBITDA

of $380 million (approx. ¥59.0 billion). On a simple calculation basis, EV/

EBITDA would be 5.7x. Management expects to close the deal in 1H 2027. As

a result of this acquisition, the overseas sales ratio is expected to rise from 16%