Japan's major refiners expected to post $3.6 bln losses on oil slump
TOKYO, Feb 12 (Reuters) - Plunging commodity prices are expected to drive major Japanese oil refiners to post losses totalling nearly 400 billion yen ($3.56 billion) in the 2015 business year, hurt by massive inventory losses as oil prices slump. Five major refiners will post a total of 544 billion yen in inventory losses, according to Reuters calculations based on company estimates. That follows a 792 billion yen loss in the previous year. Top refiner by sales, JX Holdings, and second-ranked Idemitsu Kosan both said they will incur losses in the year ending March 31. JX expects a record net loss of 330 billion yen ($2.74 billion) in fiscal 2015 while Idemitsu warned of a 13 billion yen loss. TonenGeneral Sekiyu on Friday reported a small net profit for January-December, making it the only one among the major refiners that has weathered the global downturn in oil prices. Globally, top oil companies have struggled to cope with a roughly 70 percent decline in oil prices since their 2014 peak, triggering a wave of spending cuts on new wells and projects to conserve cash. Following are the net profit/loss results/projections for major Japanese refiners. Units are in billion yen. TonenGeneral Sekiyu and Showa Shell Sekiyu report earnings on calendar year basis, while three others' business year ends on March 31. FY2015 FY2015 Company Net profit/loss inventory loss JX -330 265 Idemitsu -13 80 TonenGeneral 0.05 87.1 Cosmo -27 57 Showa Shell -27.4 54.8 Total -397.35 543.9 ($1 = 112.4400 yen) (Reporting by Osamu Tsukimori; Editing by Anupama Dwivedi)
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