Japan's Idemitsu quadruples FY27 profit forecast to $1.86 billion on stronger oil prices

Tokyo: Idemitsu Kosan, Japan's second-biggest oil refiner, quadrupled its fiscal 2026 net profit forecast on Wednesday, citing stronger oil prices and robust trading and export earnings.

Here are details:

* The company expects net profit of 295 billion yen ($1.86 billion) for the year ending March 2027, up from its May prediction of 75 billion yen


* For April-September first half, net profit rose more than fivefold from a year earlier to record 322.4 billion yen.

* The share of crude oil sourced from the Middle East currently stands at just over 60% and the company wants to increase the share if shipping through the Strait of Hormuz returns to normal, CEO Noriaki Sakai told reporters

* In 2025, Idemitsu sourced more than 90% of its crude from the Middle East

* The company is discussing 2027 term contracts with Middle Eastern oil producers, but is not holding talks with US producers at the same level, said Sakai

* Idemitsu expects its Nghi Son Refinery and Petrochemical in Vietnam to post a net profit in fiscal 2026 as it continues to operate at high capacity

* Nghi Son will be able to repay its loan principal from its own cash flow from 2027, following an agreement among Idemitsu and the other sponsors to reduce its interest burden after prolonged negotiations, Sakai said