• Linkdin
Maximize your media exposure with Fibre2Fashion's single PR package  |   Know More

Idemitsu posts good sales & profits on back of high crude prices

04 Nov '08
5 min read

[Petroleum products business]
In the petroleum products business, crude oil prices rose sharply at an unprecedented rate. The Company strived to shift increased costs to the selling prices.

However, the operating income before gains from the change in the valuation method for inventories mentioned above declined compared with the same period of the preceding year due to increases in the fuel oil prices necessary for oil refining and the time lag until the increased costs could be shifted to the selling prices.

This was despite improved export profit margins backed up by increasing demand from Asian countries, a decrease in supply costs benefiting from the nonexistence of the scheduled repairing of oil refineries during the period. In addition, gains from the change in the valuation method mentioned above were 25.3 billion.

The overall cumulative consolidated net sales of the petroleum products business from April to September 2008 increased by 42.2% on a year-on-year basis to 1,747.3 billion and the operating income jumped by 1,073.5% to 25.5 billion.

[Petrochemical products business]
With respect to the petrochemical products business, the naphtha price rose sharply due to the surging crude oil prices, reaching a new record high. However, market prices for styrene monomer and paraxylene were unable to catch up with the sudd en sharp rise in the price of raw materials as with the case of the petroleum products.

Furthermore, even in a period when naphtha prices were falling, market prices declined even more than the prices for materials and consequently, profit margins contracted significantly.

As a result, the cumulative consolidated net sales of the petrochemical products business for the second quarter of fiscal 2008 increased by 8.7% on a year-on-year basis to 380.7 billion and consolidated operating account decreased by 16.3 billion from the same period last year, resulting in a loss of 3.0 billion.

[Oil exploration and production business]
In the oil exploration and production business, Brent Crude oil prices rose by 45.8$/bbl against the same period last year to 109.1$/bbl, and hovering crude oil price acting as a ontributing factor to profits.

The cumulative overall consolidated net sales in oil exploration and production business for the second quarter of fiscal 2008 increased by 47.5% on a year-on-year basis to 75.0 billion supported by hikes in crude oil prices, and operating income climbed by 62.7% from the same period a year earlier to 35.9 billion.

For more detial click here.

Idemitsu Kosan Co Ltd

Leave your Comments

Esteemed Clients

TÜYAP IHTISAS FUARLARI A.S.
Tradewind International Servicing
Thermore (Far East) Ltd.
The LYCRA Company Singapore  Pte. Ltd
Thai Trade Center
Thai Acrylic Fibre Company Limited
TEXVALLEY MARKET LIMITED
TESTEX AG, Swiss Textile Testing Institute
Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)
Taiwan Textile Federation (TTF)
SUZHOU TUE HI-TECH NONWOVEN MACHINERY CO.,LTD
Stahl Holdings B.V.,
Advanced Search