⚠ Impairments in Italy and TexasModerate threat

Mitsui & Co. (8031) — threat to the moat

Mitsui wrote down two oil and gas businesses in one year, and its own price deck is falling.

In the year to March 2024 Mitsui impaired its Italian oil and gas business by ¥23.6 billion and its South Texas business by ¥12.3 billion1. Tempa Rossa in Italy, in which it holds 25%2, contributed a loss of ¥18.8 billion that year before returning to profit3.

Impairments, year to March 2024 (¥ bn)23.6Mitsui E&P Italia B12.3Mitsui E&P South TexasMitsui results, year to March 2024
Two write-downs in one year.

Upstream assets are carried at values that depend on long-term price assumptions, and Mitsui's own assumption for Brent falls from about $90 to $654. Lower prices mean lower values.

The oil and gas business is the one Mitsui is shrinking at the margin, through sales such as Oman5.

The Oman sale shows the other response to weak returns: selling rather than writing down. The $148 million price for the onshore blocks6 is small, and it slipped past the year end because the conditions precedent were not satisfied7. Exits in oil and gas take time even when the price is agreed.

The measure is further impairments. Another write-down would say the long-term assumptions are still too high.

References
  1. ReportedIn the year to March 2024 Mitsui impaired its Italian oil and gas business by ¥23.6 billion and its South Texas business by ¥12.3 billion.
    Mitsui & Co., Consolidated Financial Results for the year ended March 31, 2024 - including the impairments in Italian and Texan oil and gas and the Anglo American Sur equity-method loss. — FY to March 2024 · publ. May 2024 · source ↗
  2. ReportedTempa Rossa in Italy, in which it holds 25%, contributed a loss of ¥18.8 billion that year before returning to profit.
    Mitsui & Co., results presentation for the year to March 2026 - producing assets with partners and stakes, LNG projects, affiliates and power contracts. — FY to March 2026 · publ. 1 May 2026 · source ↗
  3. ReportedTempa Rossa in Italy, in which it holds 25%, contributed a loss of ¥18.8 billion that year before returning to profit.
    Mitsui & Co. Integrated Report 2026, data section - results by operating segment: gross profit, equity-method profit, dividend income, core operating cash flow and total assets. — FY to March 2022-2026 · publ. 2026 · source ↗
  4. ReportedUpstream assets are carried at values that depend on long-term price assumptions, and Mitsui's own assumption for Brent falls from about $90 to $65.
    Mitsui & Co., Consolidated Financial Results for the year ended March 31, 2026 (IFRS) - the consolidated statements of income, financial position and cash flows, segment information, dividends, buybacks and the forecast for the year to March 2027. — FY to March 2026 · publ. 1 May 2026 · source ↗
  5. ReportedThe oil and gas business is the one Mitsui is shrinking at the margin, through sales such as Oman.
    Mitsui & Co. release - sale of its onshore Oman oil and gas interests (Blocks 3&4 and 9) for $148 million, approximately ¥23.2 billion. — 2026 · publ. 2026 · source ↗
  6. ReportedThe $148 million price for the onshore blocks is small, and it slipped past the year end because the conditions precedent were not satisfied.
    Mitsui & Co. release - sale of its onshore Oman oil and gas interests (Blocks 3&4 and 9) for $148 million, approximately ¥23.2 billion. — 2026 · publ. 2026 · source ↗
  7. ReportedThe $148 million price for the onshore blocks is small, and it slipped past the year end because the conditions precedent were not satisfied.
    Mitsui & Co. release - update on the Oman sale: conditions precedent not expected to be satisfied within the year to March 2026. — 2026 · publ. 2026 · source ↗
Sources
Generated September 24, 2026