SINGAPORE (ICIS)--Japan's Showa Denko has incurred a full-year 2020 net loss of yen (Y) 76.3bn ($720m), reversing the profit in 2019, while earnings from its petrochemical segment slumped amid the coronavirus pandemic.
|in billion yen (Y)||2020||2019||% change|
|Petrochemical net sales||193.4||250.7||(23)|
|Petrochemical operating income||4.9||17.2||(72)|
Olefins market prices had declined along with crude oil and naphtha values, while the supply-demand balance in east Asia softened in the first quarter, caused by a slowdown in the Chinese economy, it said.
Petrochemical earnings plunged “due mainly to a remaining impact of the negative spread between purchase and shipment prices of raw naphtha inventory caused by a fall in raw naphtha price”, it added.
For 2021, Showa Denko expects to trim its net loss to Y14bn on the back of a projected 31.5% increase in net sales to Y1.28tr.
For petrochemicals, operating profit this year is expected to more than double to Y11.5bn, with net sales forecast to rise 1.3% to Y196bn.
($1 = Y105.9)
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