JX Holdings Inc. said Wednesday that it now expects a group net loss of 330 billion yen ($2.74 billion) in fiscal 2015, slumping into the red for the second straight year, due to an oil inventory write-down stemming from tumbling oil prices.
largest oil refiner by capacity reversed its earlier forecast of a consolidated net profit of 45 billion yen
The company plans to book an impairment loss of 235 billion yen in the current business year through March 31, far larger than the previous estimate of a loss of 30 billion yen, because of the steep fall in oil, copper and other commodity prices.
The loss forecast follows the group net loss of 277.21 billion yen it posted in the last fiscal year. As a way of addressing concerns over the effects of slumping oil prices on Japanese companies, the Bank of Japan adopted a negative interest rate last week.
The oil company also cut its sales outlook to 8.70 trillion yen for this fiscal year from the previous projection of 9.35 trillion yen, while projecting an operating loss of 100 billion, compared to an earlier expectation of 110 billion yen in operating profit.
In the April-December period, JX Holdings posted a group net loss of 113.4 billion yen, hit by sliding oil prices, following a loss of 134.02 billion yen in the same period a year earlier.
Sales dropped 19.8 percent from 8.34 trillion yen a year earlier to 6.69 trillion yen in the nine-month period. The company posted an operating loss of 79.27 billion yen, compared to a loss of 205.36 billion yen a year before.
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Source: Equities.com News
(February 2, 2016 - 4:57 PM EST)
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