Marubeni ups annual profit forecast by 52% on higher metal prices (updated)
02/11/2021 10:06
(Recasts with earnings results and quotes)
By Yuka Obayashi
TOKYO, Nov 2 (Reuters) - Japanese trading house Marubeni
Corp 8002.T reported a record net profit of 205.8 billion yen
($1.81 billion) for April-September and lifted its annual
estimate by 52% as higher prices of iron ore, copper and coking
coal boosted its metals business.
"Higher resource prices bolstered earnings from our iron ore
and coking coal assets in Australia, copper operation in Chile
and alminium business in Australia and Canada," Chief Financial
Officer Takayuki Furuya told a news conference.
"Both natural resource and non-resource segments showed
strong performance as the economy picked up from the
pandemic-induced slump," Furuya said, pointing to solid growth
in energy, agriculture and food processing operations.
For the six months to Sept. 30, net profit doubled from a
year earlier as the contribution from its metals business jumped
to 87.1 billion yen from 18.5 billion yen.
Marubeni raised its profit outlook for the year to March to
a record 350 billion yen from 230 billion yen, beating the 325
billion yen mean of 11 analyst estimates compiled by Refinitiv.
The trading company also raised its annual dividend forecast
to 51 yen per share from its earlier estimate of 34 yen.
Marubeni will consider buying back its shares as its
financial base has improved on robust earnings, Furuya said,
potentially changing its current policy of skipping share
buybacks to focus on reinforcing its financial health.
With upbeat earnings and boosted shareholder returns, shares
in Marubeni surged 3.4% on Tuesday, outperforming a 0.4% drop in
Tokyo's benchmark Nikkei 225 index .N225 .
Marubeni also said it would exit North Sea oil and gas
operations by selling its assets, with details to be announced
after a contract is signed.
"We'll continue to pursue the possibility of divesting our
upstream stake in oil and gas, given the impact of climate
change," Furuya said.
($1 = 113.4900 yen)
(Reporting by Yuka Obayashi Editing by Christian Schmollinger
and Mark Potter)
((Yuka.Obayashi@thomsonreuters.com; +813-4520-1265;))