JX Holdings Forecasts 85B Yen Recurring Profit for 1HF2010

JX Holdings announced on Tuesday its 6-month consolidated recurring profit is forecasted at 85 billion yen for the first half of fiscal 2010 ending in September. Margin is expected to improve for petroleum products but the firm would post inventory evaluation loss due to crude oil price down. The profit forecast was revised down by 5 billion yen from the previous forecast announced in May. Meanwhile, the 6-month consolidated net profit is forecasted at 260 billion yen, up by 50 billion yen from the previous forecast, due to negative goodwill of 226.5 billion yen posted in April-June.

Metals business unit’s half-year recurring profit is expected to increase by 4 billion yen to 28 billion yen from the previous forecast. The main factor is that electrolytic copper market price currently stays above US 300 cents per pound at London Metal Exchange, higher than predicted. Profit forecast was revised up by 3 billion yen for resource development division and by 500 million yen for copper smelting division. Margin would also improve by 1.5 billion yen for sulphuric acid. Electronic material division would also gain higher profit than previously expected thanks to demand recovery.

On the other hand, JX Holdings revised down half-year recurring profit forecast to 16 billion yen for oil refining division from previously estimated 35 billion yen. Inventory evaluation loss will emerge since crude oil market price is forecasted at average US$ 77 per barrel against previously estimated US$ 80. Meanwhile, the firm revised up recurring profit forecast for oil development division by 1 billion yen to 32 billion yen.

For the first quarter of April-June 2010, JX Holdings gained consolidated recurring profit at 59.1 billion yen. The profit was lower by 24% than the profit sum for April-June 2009 posted at previous Nippon Oil Corporation and Nippon Mining Holdings.