TOKYO (Kyodo) -- Japan's largest oil wholesaler JXTG Holdings Inc. downgraded Thursday its earnings forecast for the year through the end of this month, expecting to fall into the red with a 300 billion yen ($2.7 billion) loss due to a decline in oil prices.
JXTG, which had expected a net profit of 155 billion yen in November, also cited falling global demand due to the expansion of the new coronavirus in slashing the estimate. It also cut its sales projection to 10.05 trillion yen from 10.40 trillion yen.
It said prices of Dubai crude oil, which were at around $64 per barrel in January, dropped to around $30 in March, affected by a lack of progress among oil exporters to cut back production.
Major trading house Marubeni Corp. also said Wednesday it expects to see its biggest loss in fiscal 2019 due to falls in the price of crude oil.
It downgraded its net earnings outlook to a loss of 190 billion yen, down from a profit of 200 billion yen. Marubeni's previous record loss, 116.4 billion yen, was incurred in fiscal 2001.