Tokyo, May 20 (Jiji Press)–Top Japanese oil wholesaler JXTG Holdings Inc. <5020> on Wednesday reported a consolidated net loss of 187,946 million yen for the year through March as crude oil prices tanked.
The fiscal 2019 red ink, in contrast to the previous year’s profit of 322,319 million yen, reflected appraisal losses on crude oil inventories that swelled on the crude oil price tumble spurred by the coronavirus pandemic.
JXTG Holdings posted a net loss for the first time since its launch in 2017. It will examine consolidating its domestic refineries further.
The company’s bottom line was also hurt by impairment losses on petroleum and natural gas development projects abroad.
The result, however, was better than the projected net loss of 300 billion yen announced in March, as crude oil prices did not fall as much as the company had forecast.
Crude oil prices are expected to remain sluggish for a long time because of weak energy consumption as the COVID-19 crisis is unlikely to end anytime soon, company officials said.
JXTG Holdings will get its domestic refineries “aligned with falling demand,” President Tsutomu Sugimori told a news conference.