Eneos forecasts a 68% drop in profit for the 2022-2023 financial year without stock gain

The logo of Eneos Holdings and Eneos Corporation is displayed at the company’s headquarters in Tokyo, Japan August 20, 2020. Picture taken August 20, 2020. REUTERS/Issei Kato/

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TOKYO, May 13 (Reuters) – Japanese oil and metals giant Eneos Holdings Inc (5020.T) on Friday forecast a 68% drop in net profit for the year ahead after posting a record profit of 537 billion yen ($4.2 billion) on the due to higher oil and copper prices.

“Higher natural resource prices, strong performance in the electrical materials sector and cost-cutting efforts contributed to record earnings,” Chairman Takeshi Saito told a news conference.

But net profit for the year to next March is expected to drop to 170 billion yen as a large gain on its oil inventory and a one-time gain from the sale of its non-core asset last year will disappear, a said the company.

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The forecast is lower than the average analyst estimate of 192 billion yen, according to Refinitiv.

Earlier this week, its smaller rival Idemitsu Kosan Co (5019.T) also warned of a 41% drop in net profit this year after posting a record profit for the year just ended. . Read more

Eneos has also set a new target to reduce scope 1 and 2 carbon dioxide emissions by 46% by 2030 compared to 2013 levels and to achieve carbon neutrality by 2050. Scope 1 refers to emissions from a company’s direct operations and scope 2 are emissions from a company’s electricity. uses for its operations.

Prime Minister Fumio Kishida said this week that Japan would phase out Russian oil imports after agreeing a ban with other Group of Seven (G7) countries to counter Moscow’s invasion of Ukraine. Read more

Eneos, Japan’s largest refiner, received its last shipment of oil from Russia in April and is buying alternative supplies from the Middle East and other regions, Saito said.

“We used to have forward contracts to transport around four shipments of Russian crude per month… but we had decided to suspend these purchases, before the government’s decision, taking into account the reputational risk among other factors”, Saito said.

Russian crude accounted for less than 5% of its total imports, he added.

($1 = 128.9300 yen)

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Reporting by Yuka Obayashi; Editing by Tom Hogue and Louise Heavens

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