Japanese trading houses post strong first-quarter profits on higher coal and oil prices.

Japanese trading houses post strong first-quarter profits on higher coal and oil prices.


But they, including Mitsubishi Corp whose profits jumped in the April-June period to reach 63% of its full-year forecast, stuck to their full-year guidance for a year-on-year decline in profits. the recession of the world economy.

Like their international rivals in the energy and mining sector, Mitsubishi, Mitsui & Co and other companies have benefited from the recovery in the energy and raw materials market.

The biggest gainer was Mitsubishi whose first-quarter profit nearly tripled to a record 534 billion yen ($4 billion), followed by Marubeni Corp whose profit jumped 80%, Sumitomo Corp jumped 45% and Mitsui jumped 44%. .

Only Itochu Corp posted a 14% decline due to smaller exceptional profits than a year earlier.

Rising global inflation, slowing economic growth in China and recent declines in some commodities such as coal and copper could limit future earnings growth, executives warned.

“There is growing uncertainty due to the global economic slowdown, falling resource prices, the protracted conflict between Russia and Ukraine and global financial constraints,” said Yuzo Nouchi, Mitsubishi’s chief financial officer.

Marubeni’s strong first-quarter results also boosted its full-year profit estimate by 50%.

“But we are maintaining our full-year profit forecast as we see a very uncertain business environment in the second quarter and beyond,” Chief Financial Officer Takayuki Furuya said, citing fears of a recession and eroding demand.

“We need to consider how the prices of natural resources will change and how the decrease in demand and the increase in the cost of goods will reduce the profit of the manufacturer and the margin of the business,” he added.

Marubeni also said on Friday that he reduced the value of his stake in Russia’s Sakhalin-1 oil project from 8 billion yen to 3 billion yen at the end of June.

Mitsui and Mitsubishi reduced the value of their shares in the Sakhalin-2 LNG project by 217.7 billion yen after Moscow’s move to take control.

Here is a table of net profits for the first quarter April-June of Japan’s five major trading houses. (in billions of yen)

Q1, FY22 Q1, FY21 year/year progress towards

change (%) throughout the year

f’cast(%)

Mitsubishi 533.95 187.57 185 63

Mitsui 275.00 191.26 44 34

Itochu 230.63 267.48 -14 33

Pilots 201.63 112.13 80 50

Sumitomo 155.23 107.30 45 42

($1 = 133.0300 yen)