Marubeni Corp. to Expand Energy and Metal Resources Interests

Marubeni Corporation plans to invest over 200 billion yen by fiscal 2007 ending March 2008 to energy and metals and mineral resources business expanding captive resources. The firm will expand the resources of copper, coal, aluminum, oil and gas in new midterm plan, G Plan, for 2 years, and will increase the trade. Koichi Mochizuki, senior vice president, said the firm will strengthen the advantaged business expanding the profitability to more than 50 billion yen of consolidated net profit for energy and metals and mineral resources even under the price down for metal resources after fiscal 2008. The firm will focus the resources into the coal, copper and aluminium assets for the metals and mineral resources while the firm seeks opportunities in Fe related interests including iron ore. The firm will invest mainly oil and gas in USA and Europe for the energy business while the firm seeks small and mid-sized projects with higher potential in Africa and Middle East. The firm aims to increase investment income and to expand trade of commodities from projects with the interests.The firm tries to realize more than 50 billion yen of consolidated net profit for energy and metals and mineral resources business for fiscal 2008 by expanding competitive assets and trading for metals and mineral resources and by strengthening trading and marketing for oil and naphtha with leading domestic share. The firm expects the consolidated net profit decreases by 16% to 36 billion yen for energy and metals and mineral resources for fiscal 2006 from a year ago due to lower price for copper and oil. However, the profit could be higher than the original estimate when the market prices would keep current level. Without major negative factors in the market, the firm’s energy and metals and mineral resources business could secure around 30% of targeted 120 billion yen of net profit for total company for fiscal 2007.