Japan Oil Wholesalers Bracing for Red Ink on Crude Plunge
Tokyo, April 21 (Jiji Press)--Major Japanese oil wholesalers are seen to have fallen into the red in fiscal 2019, which ended in March, hit hard by a sharp drop in crude oil prices.
The economic stagnation caused by the novel coronavirus crisis has dampened energy demand.
Industry leader JXTG Holdings Inc. <5020> expects to report a consolidated net loss of 300 billion yen for the latest fiscal year, compared with a net profit of 322.3 billion yen for fiscal 2018.
On Tuesday, rival Idemitsu Kosan Co. <5019> announced that it is bracing for a consolidated net loss of 25 billion yen for fiscal 2019, after posting a net profit of 81.4 billion yen in the previous year.
Their projected dismal bottom lines reflect larger appraisal losses on crude oil inventories. Energy consumption is expected to fall further as it is unclear when the pandemic will be contained.
[Copyright The Jiji Press, Ltd.]