Idemitsu Logs Profit Drop despite Showa Shell Integration
Tokyo, Aug. 14 (Jiji Press)--Major Japanese oil distributor Idemitsu Kosan Co. <5019> saw its consolidated sales and operating profit drop in April-June, despite having integrated with Showa Shell Sekiyu K.K. in April.
Idemitsu's sales fell 11.3 pct and operating profit plunged 70.0 pct from the year-before combined figures of both Idemitsu and Showa Shell.
Idemitsu saw its inventory valuation gains and margins on petroleum products shrink as a result of falling Dubai crude oil prices, despite its management integration leading to savings of some 6 billion yen, including from the efficient use of refineries.
All business segments except for power and renewable energy saw decreases in profit, hit by the falling price of crude oil and lower sales of styrene monomer products due to the slowing Chinese economy.
The average price of Dubai crude oil in the three months fell to 67.4 dollars per barrel, down by 4.7 dollars from a year before.
[Copyright The Jiji Press, Ltd.]