Trader Mitsui to Book Impairment Losses of Up to 70 B. Yen
Tokyo, March 27 (Jiji Press)--Mitsui & Co. <8031> said Friday that it expects to log impairment losses of 50 billion yen to 70 billion yen for the year ending Tuesday, mainly due to a plunge in crude oil prices triggered by the worldwide spread of the new coronavirus.
The major Japanese trading house had previously forecast that it will book a consolidated net profit of 450 billion yen for fiscal 2019.
The company expects to see impairment losses in a shale gas and oil project in the United States and in an oil project in Italy, against the backdrop of the spread of the virus, which originated in China.
It also took into account the risk of booking appraisal losses on some of its shareholdings due to a sharp deterioration in the business environment amid a slump in the global economy.
The virus crisis has started to negatively affect the earnings of other general trading companies as well.
[Copyright The Jiji Press, Ltd.]