H1-14 profits at Mitsui Chemicals swell on higher prices, volumes

06-Nov-14

Mitsui Chemicals posted a H1 net profit of Japanese yen (Y) 7.4 bln, representing a sharp surge from a Y1 bln profit recorded in the same period last year, partly on higher sales prices and volumes, as reported by ICIS. Net sales for the six months ending September 2014 increased 6.1% year on year to Y776 bln, with operating income jumping 69% to Y18.6 bln.“This was mainly attributable to Y37.9 lbn yen increase in sales prices and Y6.5 bln increase in sales volume. Sales prices were higher because of the rise in naphtha, other raw material and fuel prices as well as the impact of weaker yen,” the company said. Mitsui Chemicals cited improved production in its petrochemicals segment for the increased sales volumes. The sharp increase in H1 operating income was attributed to “increased sales volume in the functional chemicals segment and the functional polymeric materials segment, in addition to lowered fixed costs”. In the petrochemicals segment, H1 operating profit grew 25.5% year on year to Y12.3 bln, on the back of a 20.5% increase in net sales to Y290.8 bln, as well as “improved market condition for by-products primarily those of butadiene and favorable trading terms." The petrochemicals segment accounted for 37% of the company’s overall net sales in the first half. For the fiscal year ending March 2015, Mitsui Chemicals is projecting a net profit of Y14 bln, reversing a net loss of Y25.1 bln in the previous year, with net sales expected at Y1,623 bln.