Feb 14 Reuters Idemitsu Kosan Co, Japan39;s secondbiggest oil refiner, revised its full fiscal year net profit forecast down by 32 to 220 billion yen 1.7 billion on Tuesday, expecting lower oil prices and a stronger yen to hit earnings.

The revision follows a similar step by Japan39;s top refiner Eneos Holdings Inc, which last week slashed its fullyear net profit forecast down by 58 to 140 billion yen, as weaker oil prices and the firmer yen are set to hit inventory valuation.

Idemitsu said its inventory valuation was expected to decrease on an assumption of Dubai oil prices at 80 per barrel and the yen at 130 to the U.S. dollar, a change from 90 per barrel and 145 yen to the dollar previously.

We have revised our forecasts to reflect the recent decline in crude oil prices and the currency correction, the company39;s executive officer, Yoshitaka Onuma, told a news conference.

The outlook of the business environment is uncertain due to mixed factors such as concerns of an economic slowdown caused by global inflation and expectations of recovery in demand thanks to relaxation of China39;s zeroCOVID19 policy, he said.

Net profit in AprilDecember increased 25 to 250 billion yen, supported by higher coal prices and gains from asset disposal. Improved operating earnings from its Nghi Son Refinery and Petrochemical in Vietnam due to stronger export margins also lent support, Onuma said.

The company also said it would spend 60 billion yen to buy back 9.7 of its shares,…