MOSCOW (MRC) -- Japan's biggest oil refiner Eneos Holdings said on Thursday it planned to more than double net profit to ¥310 B in three years and expand aggressively in green energy and climate-friendlier fuels, said Reuters.
Companies in Japan, an energy-poor country importing nearly everything from oil to coal, are under pressure from the government and shareholders to be carbon-neutral by 2050.
Russia's invasion of Ukraine has also made the green transition a matter of national energy security. Eneos, which still relies mainly on its oil business, plans to spend ¥1 T over three years on its energy segment including renewable energy projects, the hydrogen supply chain and sustainable aviation fuel (SAF).
Its first SAF plant in Japan should be launched in 2026 and it is considering another SAF facility that could be operational by about 2030. Renewable energy, primarily solar and wind power, should reach 6 to 8 gigawatts (GW) by 2040 from less than 1 GW now, the company said.
Eneos, also a major miner, said it was preparing to list its metal unit JX Nippon Mining and Metals, although the plans had yet to be finalized. Through the listing, Eneos will be able to execute strategic investment which is necessary for transforming the business portfolio to realize the energy transition, President Takeshi Saito said.
"The spin-off will also help reduce volatility of Eneos' earnings," he said. JX will sell majority stake in the Caserones copper mine in Chile to Lundin Mining after suffering a series of ramp-up delays and cost overruns, resulting nearly ¥350 B of appraisal loss in total.
Eneos aims to boost net profit to ¥310 B in the fiscal year to March 2026 from ?180 B projected for the current 2023/24 year. Net profit fell 73% in 2022/23 fiscal year to ¥143.8 B, hurt by declines in its petrochemical business and as gains on inventories were reduced.
Eneos plans to invest ¥180 B over the three years in its oil and gas upstream segment, including for additional development of liquefied natural gas in Indonesia and Papua New Guinea, and in its carbon-capture and storage business.
We remind, Eneos Holdings Inc. has no plans to buy Russian crude until all problems related to the Ukraine crisis are over and will purchase alternative supplies from the Middle East.