Japan's Cosmo expects around 90% refinery run rate in 2024/25

Cosmo Energy Holdings Co

08/02/2024 11:29

By Yuka Obayashi
       TOKYO, Feb 8 (Reuters) - Japanese oil company Cosmo
Energy Holdings  5012.T  expects its refinery run rate to hover
around 90% in the business year starting in April as it plans
maintenance shutdowns at its Chiba and Yokkaichi sites, an
executive said on Thursday.
    The estimated run rate for its three refineries in the
current year through March 31 is 87.5%, factoring in the impact
of scheduled maintenance, down from 97.8% a year earlier, the
company said.
    The reduced run rate is attributed to scheduled turnaround
at its Chiba and Sakai refineries, coupled with technical
problems encountered at refineries, including Yokkaichi,
according to a company spokesperson.
    "For the next year, our plan includes large-scale
maintenance on Yokkaichi and No.2 unit in Chiba, mirroring the
work we did this year with Sakai and No.1 unit in Chiba," Senior
Managing Executive Officer Takayuki Uematsu told a news
conference.
    As a result, the utilization ratio is expected to come in at
around 90%, he said.
    "But we aim to enhance earnings by avoiding unplanned
outages," he added, saying the company's profit in the April to
December period was reduced by 17 billion yen ($114 million) due
to unforeseen shutdowns.
    Cosmo on Thursday reported a 26% drop in April-December net
profit as lower oil prices reduced inventory valuation gains.
    It posted a profit of 45.8 billion yen in the nine months
through Dec. 31 against 62.1 billion yen a year earlier, and
stuck to its full-year profit forecast of 78 billion yen.
    Cosmo has not succeeded in Japan's public auctions for
offshore wind power projects, but its goal to develop 600
megawatts of offshore wind farms by 2030 remains unchanged,
Uematsu said.
    "Considering that all the auctioned projects have been
granted to consortia involving major trading companies, we
acknowledge the significant influence of their network power,"
he said.
    "We are deeply thinking about partners and relationships."
    ($1 = 149.0100 yen)

 (Reporting by Yuka Obayashi; Editing by Jan Harvey)
 ((Yuka.Obayashi@thomsonreuters.com; +813-4520-1265;))