TonenGeneral Sekiyu K.K. (E02543) Stock Price

Toho General Petroleum is a comprehensive energy company that handles a wide range of products, from crude oil to petroleum products and petrochemicals. The company has established an integrated business structure covering crude oil imports, refining, and product sales. In addition to petroleum products such as gasoline and diesel, it manufactures petrochemical products that serve as raw materials for plastics. In recent years, the company has also expanded into natural gas and biomass power generation businesses.

The company's revenue primarily comes from gas station operations serving general consumers and fuel and chemical product sales to corporate clients. Through its sales division, including subsidiaries EMG Marketing and Chuo Petroleum Sales, the company operates service stations nationwide, providing fuel to individual drivers and logistics companies. Industrial fuels and petrochemical products are sold directly to manufacturers and chemical companies, with stable corporate demand forming the foundation of its revenue base.

The business consists of two pillars: petroleum operations and petrochemical operations. The petroleum division is divided into sales, refining, and transportation departments, operating refineries through the Keiyo Refining Joint Venture and providing logistics services through Toho General Marine. The petrochemical division manufactures and sells basic chemical products—raw materials for plastics and synthetic fibers—through subsidiaries such as Toho Chemical.

We regret to inform you that Tonen General Sekiyu K.K. merged with JX Nippon Oil & Energy in 2017 to form JX Nippon Oil & Gas (now ENEOS Holdings), and no longer exists as an independent listed company.

To provide our investors with relevant information, we will explain the current management strategy of ENEOS Holdings following the merger.

ENEOS Holdings is transforming from its traditional petroleum refining business toward becoming an energy company adapted to a low-carbon, circular economy by 2030. The company has set an operating profit target of 800 billion yen for fiscal year 2030, with plans to generate 300 billion yen from growth businesses. To realize a decarbonized society, the company is significantly expanding investment in new energy sectors, including renewable energy and hydrogen businesses.

Key investment areas include building hydrogen supply chains and developing battery materials for electric vehicles. The company plans to expand annual hydrogen supply to 200,000 tons by 2030—approximately tenfold current levels—including industrial hydrogen for steel mills and chemical plants, as well as establishing hydrogen refueling station networks for fuel cell vehicles. In copper foil operations, the company is developing high-performance materials for vehicle batteries, pursuing a differentiation strategy to capture the global shift toward electric vehicles.

Business expansion in Asian markets is also a critical growth strategy. Beyond petroleum refining operations in Vietnam and Singapore, the company is expanding lubricant manufacturing facilities in Malaysia to strengthen regional supply capabilities. Additionally, the company has entered biomass power generation in Thailand and begun supplying clean fuels to meet strengthened environmental regulations across Southeast Asia. These overseas initiatives aim to secure revenue sources to offset declining domestic demand.