(Bloomberg) -- Marubeni Corp., one of Japan’s top five general trading houses, warned it’s heading for the biggest ever annual loss due to $3.3 billion in impairment charges in its energy and grain operations.
The company now forecasts a net loss of 190 billion yen ($1.7 billion) in the year ending March 31. Just last month, it said it was expecting a profit of 200 billion.
Marubeni’s revision comes after a slump in oil prices amid the coronavirus pandemic prompted a broad review of its assets. While the company said it would keep its annual dividend payment at a minimum of 35 yen, it won’t conduct share buybacks due to the deterioration in its financial base.
The expected loss will be the biggest since Marubeni was listed in 1950, President Masumi Kakinoki said at a briefing in Tokyo. The company wants to consider the balance of its resource assets, he said.
The one-time charges include 145 billion yen in losses related to its oil and gas operations as prices plunged due to the virus. The company said it expects a 80-billion-yen impairment loss on its U.S. grain business Gavilon and a 60 billion yen impairment on its Chilean copper mining business.
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