JX Holdings shifts focus away from oil

Japan

TOKYO, June 26, 2015 – Japan’s largest refining company will shift the focus of its operations away from oil-based products in response to the drop in oil prices.

JX Holdings will cut spending by almost 25 percent from 2016 to 2019, scaling back petrochemicals operations to concentrate on chemicals and raw materials.

The company’s spending for 2012-2015 was 1.3 trillion yen ($10.5 billion). This figure will drop to 1 trillion yen ($8.1 billion) in the next three-year cycle.

Revenues for the company fell 26 percent in the first quarter of 2015 after oil prices made a dramatic decline.

Through its group company JX Nippon Oil & Energy Corporation, JX Holdings operates some of Japan’s largest refineries, including Negishi, Kawasaki and Mizushima.

The holding company is also exploring merger and acquisition opportunities, a company spokesman told Bloomberg Business.