TonenGeneral Sekiyu KK, the Japanese unit of Exxon Mobil Corp, cut its full-year profit outlook as record oil prices reduced margins for processing refined fuels.
The refiner predicted net income of ?9 billion (US$173 million) for the year ending Dec. 31, compared with the ?2 billion it had estimated in February, it said in a statement to the Tokyo Stock Exchange yesterday.
HIGHER SALES
However, the company raised its sales forecast to ?.9 trillion from ?.5 trillion.
For the six months ended June 30, net income declined to ?.85 billion from ?7.1 billion a year ago. Sales rose to ?.69 trillion, compared with ?.41 trillion.
Crude oil? 61 percent gain in a year has trimmed TonenGeneral? earnings from refining gasoline and other fuels. The company failed to pass on increased costs to customers, who are switching to cheaper alternatives and consuming less.
DEMAND FALLS
Japan? domestic demand for petroleum fuel dropped 2.4 percent in the year ended in March and is forecast to shrink by 2.9 percent annually to March 2013, the trade ministry said.
TonenGeneral dropped 0.1 percent to close at ?66 in Tokyo yesterday. The results came after the markets closed.
TonenGeneral has lost 22 percent this year compared with the 25 percent decline in the 11-member TOPIX Oil and Coal Index.
Crude oil in New York traded at US$116.46 a barrel at 3:12pm. Tokyo time after touching a record US$147.27 on July 11.
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