Japan’s Mitsui & Co on Tuesday posted $8bn (JPY1.1tn) in net profit for the fiscal year 2022/23, up 24% from the same period last year, Reuters reports.

Its high profits were bolstered by continued high energy prices globally. Mitsui owns oil and gas company MOECO, involved in production of liquified natural gas (LNG) and other fossil fuels in projects around the world, including in the US, Australia, and Russia.

Sojitz, another Japanese holding company with energy investments, also posted record profits of $814.7m (JPY111.2bn), up 34% from 2021/22, citing higher coal prices. However, both companies have forecast lower net profits for the current fiscal year, citing lower commodity prices.

A spokesperson for Mitsui said via Reuters that net profit for 2023/24 is predicted to drop by JPY225bn, hitting approximately $6.5bn (JPY880bn). While the company expects commodity prices to fall, Mitsui’s machinery and infrastructure businesses will prop up this fiscal year’s results. On Tuesday, Mitsui shares closed 1.3% down on the day’s trading, while Sojitz lost 4%.

In an unveiling of its three-year business plan for the financial year 2025/26, the company forecasts a profit of $6.7bn (JPY920bn). The company also plans to double its renewable energy generation portfolio to over 30% by 2030, compared with 2019 levels, according to a Reuters report.

“We have factored in the reactionary decline from the normalization of post-Covid pent-up demand and commodity market conditions, but also the expansion of the services we can offer and the organic growth of what we have invested in the past three years,” Mitsui CEO Kenichi Hori told a briefing.

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By GlobalData

The Western energy crisis, sparked by Russia’s invasion of Ukraine, led many energy companies to report record profits. Some oil giants, such as BP, have continued to report higher than expected profits, announcing $8.2bn for this year’s first quarter.