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▼ Japan's Mitsui Sees Net Profit Falling 15% On Weaker Energy Business
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Japan's Mitsui expects net profit to fall 15.4 per cent to 900 billion yen ($5.7 billion) for the fiscal year ending in March 2025, hit by weaker performance of its energy business, the trading house said on Wednesday.
The company plans to buy back up to 40 million of its shares worth up to 200 billion yen by Sept. 20 to boost shareholders' returns.
It posted a drop of 6 per cent in net profit for the year ended in March to 1.1 trillion yen, on lower prices of metallurgical coal, crude oil and gas but outperformed an LSEG poll of analysts that forecast net profit of 973 billion yen.
According to the company's three-year business plan announced in May 2023, net profit is expected at 920 billion yen in the fiscal year ending in March 2026.
"Smaller one-off gains is the main reason for the profit decline for the current year," Mitsui CEO Kenichi Hori told a press conference.
Under the three-year plan, Mitsui is set to spend 1.8 trillion yen in growth segments, including 600 billion in energy transition such as natural gas, next-generation fuels and decarbonisation.
"We want to have a geographically-diversified LNG (liquefied natural gas) portfolio and complete promising LNG projects one by one so that our Japanese customers can diversify their procurement," Hori said.
Hori did not elaborate on the company's future plan for the Arctic LNG 2 project in Russia in which Mitsui owns a stake, but said the trading house would respond carefully while consulting with the Japanese government and other relevant parties.
Mitsui also said it has sold its stake in Indonesia's PT Paiton Energy, which operates coal power plants, to a unit of Thai energy firm Ratch group PCL and a unit of unlisted PT Medco Daya Abadi Lestari, and will book a profit of 44 billion yen in the April-June quarter.
After the sale, the net capacity of Mitsui's power generation assets will be 9.6 gigawatts, of which coal-fired
power generation will account for 8 per cent, down from 16 per cent as of March 2024.
($1=157.8600 yen)
The company plans to buy back up to 40 million of its shares worth up to 200 billion yen by Sept. 20 to boost shareholders' returns.
It posted a drop of 6 per cent in net profit for the year ended in March to 1.1 trillion yen, on lower prices of metallurgical coal, crude oil and gas but outperformed an LSEG poll of analysts that forecast net profit of 973 billion yen.
According to the company's three-year business plan announced in May 2023, net profit is expected at 920 billion yen in the fiscal year ending in March 2026.
"Smaller one-off gains is the main reason for the profit decline for the current year," Mitsui CEO Kenichi Hori told a press conference.
Under the three-year plan, Mitsui is set to spend 1.8 trillion yen in growth segments, including 600 billion in energy transition such as natural gas, next-generation fuels and decarbonisation.
"We want to have a geographically-diversified LNG (liquefied natural gas) portfolio and complete promising LNG projects one by one so that our Japanese customers can diversify their procurement," Hori said.
Hori did not elaborate on the company's future plan for the Arctic LNG 2 project in Russia in which Mitsui owns a stake, but said the trading house would respond carefully while consulting with the Japanese government and other relevant parties.
Mitsui also said it has sold its stake in Indonesia's PT Paiton Energy, which operates coal power plants, to a unit of Thai energy firm Ratch group PCL and a unit of unlisted PT Medco Daya Abadi Lestari, and will book a profit of 44 billion yen in the April-June quarter.
After the sale, the net capacity of Mitsui's power generation assets will be 9.6 gigawatts, of which coal-fired
power generation will account for 8 per cent, down from 16 per cent as of March 2024.
($1=157.8600 yen)
- 1/5 21:11
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