Operating Results & Financial Conditions
- How sensitive are Mitsui's operating results to fluctuations in crude oil, iron ore and copper prices?
Q.1How often and when do Mitsui announce earnings results?
Please refer to "IR Calendar".
Q.2Where can I find Mitsui's past earnings results?
Please refer to "Financial Data".
Q.3What is Mitsui's outlook for the year ending March 2019?
In the forecast for the year Ending March 31, 2019 announced on February 1, 2019, we anticipate core operating cash flow* of ¥590.0 billion and profit for the year attributable to owners of the parent of ¥440.0 billion.
These forecasts assume an average currency exchange rate of US$1.00 = ¥111.00, AU$1.00 = ¥81.02, BRL1.00 = ¥29.40 and an average crude oil price** of US$70.00 per barrel.
*Core operating cash flow = Operating cash flow - Cash flow from increase/decrease in working capital
**An average crude oil price is applied for Mitsui’s consolidated financial result reckoned in time lag.
Q.4How sensitive are Mitsui's operating results to fluctuations in foreign exchange rates?
A depreciation of ¥1 against US$1/AU$1/BRL1 is estimated to have a positive impact on profit for the year attributable to owners of the parent of about ¥2.6 billion/¥1.7 billion/¥0.7 billion respectively as of the year ending March 2019. This estimation is based on the assumptions of our outlook for the year ending March 2019 announced on May 8, 2018.
Q.5How sensitive are Mitsui's operating results to fluctuations in crude oil, iron ore and copper prices?
An increase of US$1 per barrel in the price of crude oil is estimated to result in an increase in our profit for the year attributable to owners of the parent of approximately ¥2.9 billion as of the year ending March 2019. An increase of US$0.1 per mmBtu in the price of U.S.Natural Gas is estimated to result in an increase in our profit for the year attributable to owners of the parent of approximately ¥0.5 billion as of the year ending March 2019. With respect to our iron ore production, an increase of US$1 per ton in the price of iron ore results in an increase in our profit for the year attributable to owners of the parent of approximately ¥2.3 billion for the year ending March 2019. As for our copper production, an increase of US$100 per ton in the price of copper results in an increase in our profit for the year attributable to owners of the parent of approximately ¥1.0 billion for the year ending March 2019. These estimations are based on assumptions of our annual production from the above-mentioned activities calculated during the year ending March 31, 2019 and foreign exchange rates during that year, announced on May 8, 2018 in our Year to March 2019 business plan.
Q.6What are Mitsui's current credit ratings?
Please refer to "Credit Ratings".
This website contains statements (including figures) regarding Mitsui & Co., Ltd. (“Mitsui”)'s corporate strategies, objectives, and views of future developments that are forward-looking in nature and are not simply reiterations of historical facts. These statements are presented to inform stakeholders of the views of Mitsui's management but should not be relied on solely in making investment and other decisions. You should be aware that a number of important risk factors could lead to outcomes that differ materially from those presented in such forward-looking statements. These include, but are not limited to, (i) change in economic conditions that may lead to unforeseen developments in markets for products handled by Mitsui, (ii) fluctuations in currency exchange rates that may cause unexpected deterioration in the value of transactions, (iii) adverse political developments that may create unavoidable delays or postponement of transactions and projects, (iv) changes in laws, regulations, or policies in any of the countries where Mitsui conducts its operations that may affect Mitsui's ability to fulfill its commitments, and (v) significant changes in the competitive environment. In the course of its operations, Mitsui adopts measures to control these and other types of risks, but this does not constitute a guarantee that such measures will be effective.