Japan's Eneos raises full-year profit forecast on higher oil, weaker yen (updated)

Cosmo Energy Holdings Co

08/11/2023 08:29

(Adds details, quotes)
       TOKYO, Nov 8 (Reuters) - Japan's top refiner Eneos
 5020.T  on Wednesday raised its net profit forecast to 240
billion yen ($1.6 billion) for the year ending in March 2024, as
higher oil prices and weaker yen are set to support results
after a drop in its quarterly profit. 
    Eneos posted a 31% fall in the second-quarter net profit to
Sept. 30 to 171.7 billion yen, but said its full-year result is
expected to increase by 67% from last year. The company had
earlier expected net profit for the year to be at 180 billion
yen.
    "We have raised a full-year operating profit estimate at oil
and gas development segment due to a weaker yen and cost
cutting," Eneos Holdings President Takeshi Saito told a news
conference.
    Eneos forecast a 50 billion yen evaluation gain on its oil
and petroleum products inventories to reflect the yen's
depreciation and higher oil prices, he added. 
    "While the company raised their outlook..., we think that
Eneos' new FY3/24 guidance is very conservative," Jefferies
analysts said in a note. 
    Cosmo Energy Holdings  5021.T , the country's third-biggest
refiner, on Wednesday also raised its net profit forecast for
the year ending in March 2024 to 78 billion yen, a 15% increase
year-on-year and up from 55 billion yen it had forecast earlier,
as the weaker yen boosts inventory valuation. 
    Cosmo also its raised full-year dividend forecast to 300 yen
per share from 250 yen, which includes interim dividend of 150
yen. Its second quarter net profit was 62% down to 36.1 billion
yen year-on-year on weaker petroleum and oil development
business. 

($1 = 150.4800 yen)

 (Reporting by Katya Golubkova and Yuka Obayashi; Editing by Kim
Coghill)
 ((ekaterina.golubkova@thomsonreuters.com;))