What were the key drivers behind Mitsui Chemicals' 88.4% year-on-year surge in core operating profit for Q1 FY2026–2027?

The core operating profit surged 88.4% year-on-year to 50.13 billion yen due to higher product selling prices, rising naphtha raw material costs generating substantial inventory valuation gains, and the weakening of the Japanese yen, which provided favorable foreign exchange effects.

Why did Mitsui Chemicals' Basic & Green Materials segment achieve a significant turnaround to profitability in Q1 FY2026–2027?

The segment turned profitable primarily because of strong short-term inventory valuation gains driven by rising domestic naphtha prices (reaching 118,900 yen per kiloliter), the absence of last year’s losses from the Osaka Petrochemical cracking unit shutdown, and positive returns from business structure optimization—though Middle East geopolitical conflicts causing plant output cuts and lower shipment volumes acted as a headwind.

Mitsui Chemicals Core Profit Surges Nearly 90%

Aug 10, 2026

Mitsui Chemicals reported an 88.4% surge in core operating profit to 50.13 billion yen for Q1 FY2026/2027, driven by price hikes and naphtha inventory gains. All four segments improved, with basic materials returning to profitability.

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