Japan’s Mitsui (OTCPK:MITSY) said on Monday its full-year net profit nearly tripled from a a year earlier to a record high of 914.7 billion yen (~$7 billion) on soaring energy and commodity prices, and said he will continue to be involved in the Sakhalin-2 LNG and Arctic LNG-2 liquefied natural gas projects in Russia.
“Given the future demand for LNG in our country and around the world, we must move forward with this project. Otherwise, the global energy balance will collapse, or there will be shortages,” said the President Kenichi Hori.
Mitsui and Mitsubishi together own 22.5% of the Sakhalin project, and the majority of the gas produced there supplies Japan; Mitsui said it will also proceed as planned to develop the Arctic LNG 2 project.
The strong results, which exceeded expectations, come even as the company posted a 20.9 billion yen loss related to LNG projects in Russia in the fourth quarter.
After reassessing the fair value of both projects to reflect a downgrade in the Russian government’s credit rating, Mitsui (OTCPK:MITSY) said it wrote down 80.6 billion yen on the assets and recorded the one-time loss.
Shell previously announced that it would exit all of its Russian operations, including the Sakhalin LNG-2, and TotalEnergies announced last week that it would record an impairment of approximately $4.1 billion partly related to the Arctic LNG project. -2.