Japan's JERA books Y14B loss from LNG resale
JERA, the world's biggest LNG buyer, reported a loss of 13.9 billion yen ($133 million) from the resale of LNG in the April-September period.
The loss highlights the struggle faced by large buyers, such as Japanese utilities, after committing to heavy volumes linked to oil prices.
Asian LNG spot prices <LNG-AS> dropped to a record low this year and were much lower than oil-linked term prices because of coronavirus-induced lockdowns affecting demand. They have since recovered to their highest in nearly two years ahead of what is expected to be a colder than usual winter.
JERA also booked a total 7.4 billion yen impairment on its stake in the Ichthys LNG project and the Darwin LNG project in Australia because of a worsening outlook for natural resources prices, a spokesman said.
The company, a thermal power and fuel joint venture between Tokyo Electric Power Company Holdings and Chubu Electric Power, reported a 21% fall in net profit for the six months to 108.9 billion yen, hit by the COVID-19 pandemic.
($1 = 104.7000 yen)
(Reporting by Yuka Obayashi Editing by David Goodman)
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