Cosmo to Reduce Oil-Product Imports After Restarting Chiba Plant

Cosmo Oil Co. (5007), a Japanese refiner partly owned by the government of Abu Dhabi, plans to reduce imports of gasoline feedstock and other products after its Chiba plant restarted two crude-distillation units.

The company bought about 100,000 kiloliters of products a month in the quarter ended June 30, Kenichi Taki, general manager of the accounting department, said today in Tokyo.

Restarts of the crude units at Chiba, near Tokyo, were delayed following an asphalt leak in June 2012. Cosmo Oil said today it had a net loss of 4.67 billion yen ($47 million) in the April-June quarter, while maintaining an earlier forecast for a full-year profit of 16 billion yen.

The shutdown of the Chiba refinery “was a big factor in Cosmo Oil’s net loss,” as it had to import products to make up for lost capacity, Hidetoshi Shioda, a Tokyo-based analyst at SMBC Nikko Securities Inc., said by phone last week.

The company plans to boost exports of middle distillates to 1.54 million kiloliters this fiscal year from 45,000 kiloliters a year earlier, it said in a statement today.

Cosmo Oil restarted the No. 2 crude distillation unit at the Chiba refinery on July 24 after planned maintenance. The company will complete the restart of secondary units at the plant later this year, Taki said.

“We are planning to make a profit by flexibly selling products at home and overseas and secure funds to resume dividend payments,” Taki said.

To contact the reporters on this story: Tsuyoshi Inajima in Tokyo at tinajima@bloomberg.net; Yuji Okada in Tokyo at yokada6@bloomberg.net

To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net

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