(Reuters) – Japanese oil and metals giant Eneos Holdings Inc on Friday revised its full-year net profit forecast down by 58% to 140 billion yen ($1 billion), as it expected lower oil prices and stronger yen to hit inventory valuation.
Eneos, also Japan’s biggest oil refiner, had earlier forecast 330 billion yen net profit for the fiscal year ending March 31, above 264 billion yen mean estimate in a Refinitiv poll of analysts. Eneos made 537 billion yen net profit in 2021.
Eneos shares were 2.3% down after the revised profit forecast.
Eneos said in a statement its crude oil and oil products inventories valuation is expected to fall by 120 billion yen from November estimates, as Dubai crude oil price had fallen to an average $80 per barrel and yen has risen to 130 per U.S. dollar from $90 and 140 estimated previously.
Sales were up by 49% to 11.3 trillion yen in the April-December period and net profit was down by 71% at 96 billion yen mainly on lower inventory valuation amid declining oil prices in the second part of the year, the company said.
Refinery run rate was at 78% in April-December, below 90% target, with weak demand in China weighing on petrochemical markets and hitting overall nine-month profit, Eneos Holdings Senior Vice President Soichiro Tanaka said in a post-earnings press briefing.
Eneos expects to improve refinery runs hit by system troubles to 80% in the current quarter, he added.
($1 = 131.7000 yen)
(Reporting by Katya Golubkova in Riga and Yuka Obayashi in Tokyo; Editing by Rashmi Aich)
