Japan's Idemitsu ups profit forecast, to split shares (updated)

Cosmo Energy Holdings Co

14/11/2023 12:36

(Adds quotes and details)
       Nov 14 (Reuters) - Japan's second-biggest oil refiner,
Idemitsu Kosan  5019.T , on Tuesday raised its full-year net
profit forecast as higher oil prices along with a weaker yen
boosted inventory valuation, also announcing a share split to
attract more investors.
    Idemitsu increased its net profit forecast for the year
through March 2024 by 80% to 180 billion yen ($1.2 billion),
following upwards profit revisions last week by peers Eneos
 5020.T  and Cosmo Energy Holdings  5021.T . 
    "We've lifted our annual profit forecast as we expect stable
refinery operations in and after the second quarter and
continued strong export margins," Chief Executive Officer
Shunichi Kito told a news conference.
    To attract more retail investors, Idemitsu said it would
split each common share into five shares, effective on Jan. 1.
    The refiner also raised its annual dividend forecast to 160
yen per share from 120 yen, and made the 160 yen the minimum
level on annual dividend for the following two years.
    "Our previous policy was to keep a stable dividend, but we
have decided to set a minimum level on dividend to clearly show
our commitment (to shareholder returns) by cutting off the
retreat," Kito said.
    Idemitsu's half-year net profit to Sept. 30 was down 41% to
165 billion yen on weaker oil and coal prices compared to the
same period a year ago. 
    Asked about the Nghi Son Refinery and Petrochemical in
Vietnam, Kito said the refinery was running at above 100%
capacity utilisation rate after completing maintenance in
October.
    Vietnam's largest refinery is likely to become profitable on
operating income basis this year, but not on net income basis,
Idemitsu said.
    "Still, the interest burden is very heavy," Kito said.
    "Discussions are underway among sponsors on measures to
counter rising interest rates," he said without elaborating.
    Nghi Son is 35.1% owned by Idemitsu, 35.1% by Kuwait
Petroleum, 25.1% by Vietnam's state oil firm PetroVietnam and
4.7% by Mitsui Chemicals  4183.T .
    ($1 = 151.6700 yen) 

 (Reporting by Katya Golubkova and Yuka Obayashi; Editing by Tom
Hogue)
 ((Yuka.Obayashi@thomsonreuters.com; +813-4520-1265;))