TOKYO, Feb 13 (Reuters) - Nghi Son Refinery and Petrochemical LLC (NSRP) in Vietnam is expected to book a net loss of at least 10 billion yen ($67 million) for 2023 due to heavy costs from rising U.S. interest rates, an executive of Idemitsu Kosan said on Tuesday.
Japanese oil refiner Idemitsu owns 35.1% stake in NSRP, Vietnam's largest refinery.
"Nghi Son continues to face the red ink on a net earnings basis due to heavy financial costs caused by high interest rates on the U.S. dollar," Yoshitaka Onuma, Idemitsu' executive officer, told an earnings news conference.
"We can't disclose the exact loss figure, but net loss is expected to exceed 10 billion yen," he said.
Still, Nghi Son refinery is running above 100% of stated capacity after completing scheduled maintenance in late October, and the Vietnamese company is expected to book a positive operating income for the year, excluding inventory impact, he said.
Idemitsu is continuing discussions with other sponsors and lenders regarding the financing of Nghi Son and the measures aimed at turning it profitable on a net basis, Onuma said, without specifying the targeted timing for reaching an agreement.
Nghi Son is 35.1% owned by Kuwait Petroleum, 25.1% by Vietnam's state oil firm PetroVietnam, and 4.7% by Mitsui Chemicals.
Idemitsu on Tuesday reported a 4.2% drop in April to December net profit due to smaller inventory gains and slumping prices of thermal coal.
Japan's second-biggest refinery posted a profit of 239.1 billion yen in the nine months through Dec. 31 compared with 249.6 billion yen a year earlier.
The company stuck to its full-year profit forecast through end-March of 180 billion yen, against the 176 billion yen mean estimate delivered by a poll of seven analysts compiled by LSEG.
Its domestic refineries' run rate is expected at around 80% in the current year to March 31, Onuma said. ($1 = 149.6600 yen) (Reporting by Yuka Obayashi; Editing by Jan Harvey)
