Japan's Eneos raises FY20/21 profit forecast on higher-than-expected oil prices (updated)
11/11/2020 06:57
(Recasts with earnings forecast and quotes)
By Yuka Obayashi
TOKYO, Nov 11 (Reuters) - Japan's oil and metals giant Eneos
Holdings Inc 5020.T on Wednesday more than doubled its net
profit forecast for the year to next March, saying it expected
an appraisal gain on its oil inventories because of
higher-than-expected crude prices.
It now forecasts a net profit of 90 billion yen ($855
million) for the current financial year, up from its May
estimate of 40 billion yen, as it now expects an appraisal gain
of 10 billion yen on its oil inventories, compared with its May
forecast of a loss of 55 billion yen.
Japan's biggest oil refiner also expects economic damage
from the COVID-19 pandemic to ease in the October-March period,
predicting its key fuel sales would fall by 3% on year by the
pandemic, less than the 8% decline in the first half, said
Soichiro Tanaka, Eneos' senior vice president.
Faced with collapsing demand from the pandemic and depressed
overseas markets, its refineries' run rate fell to 60-70% in the
first half, but Eneos expects an improvement in the second half
because of higher demand for kerosene during the winter, Tanaka
said.
"Still, our run rate will depend on how much recovery we
will see in overseas fuels markets," he said.
Its metals unit, JX Nippon Mining & Metals Corp, said on
Monday it had agreed to buy the stakes in its Caserones copper
mine in Chile owned by its partners Mitsui Mining and Smelting
5706.T and Mitsui & Co 8031.T for an undisclosed sum.
urn:newsml:reuters.com:*:nL1N2HV0EW
JX, a miner and smelter, plans to boost output of the mine,
but the decision does not mean any changes in its metal strategy
to reinforce mid- and downstream operations, Tanaka said.
"In general, it is possible to seek a new partner for the
project, but there is no immediate plan like that," he said.
($1 = 105.2700 yen)
(Reporting by Yuka Obayashi; Editing by Muralikumar
Anantharaman and Gerry Doyle)
((Yuka.Obayashi@thomsonreuters.com; +813-4563-2761;))