Osaka Gas cuts profit forecast on Freeport shutdown
Japanese utility Osaka Gas on August 1 slashed its net profit forecast by 62% for the 12 months to March 31, 2023 to 31.5bn yen ($240mn) from its previous estimate of 82bn yen owing to the shutdown of the Freeport LNG project in the US. The company is expecting a 79.5bn yen loss from the outage.
In June this year, a fire broke out at the liquefaction plant of the Freeport LNG project and the operations at the plant have been suspended since. The project is expected to partially resume operations in early October, which is an extension of its initially estimated plant shutdown period.
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Osaka Gas’ annual LNG offtake volume from the project under the liquefaction tolling agreement is approximately 2.32mn metric tons, which is approximately 19% of its total annual LNG handling volume.
Meanwhile, the company’s net profit in the three months to June 30 dropped 63.5% year/year. It booked a one-off charge of 31.4bn yen during the quarter due to the Freeport outage.