UPDATE: Mitsui & Co Profit More Than Doubles; No Oil Spill Provision

Mitsui & Co. (8031.TO) said Tuesday its group net profit more than doubled on year in the July-September quarter thanks to a surge in commodity and energy prices.

As of Tuesday, its unit, Mitsui Oil Exploration Co., or Moeco, had been asked to pay a total of $1.898 billion by BP Plc. (BP) as part of the costs for the oil spill in the Gulf of Mexico. But Mitsui & Co. said it hasn't booked any reserves or financial liabilities related to the matter, citing uncertainties such as the total costs involved and the number of parties that have responsibility.

The Tokyo-based trading house said its net profit for the second quarter of the fiscal year ending in March 2011 rose to Y80.70 billion from Y15.51 billion a year earlier. Group revenue increased to Y2.437 trillion from Y2.357 trillion.

For the fiscal year ending March 2011, the company left its full-year group net profit outlook unchanged at Y320 billion, but cut its sales outlook to Y10.5 trillion from Y11.5 trillion.

The Gulf of Mexico oil spill began April 20 when the BP's Deepwater Horizon drilling platform exploded. It took BP roughly five months to stop the leak and seal the well. BP booked a $32.2 billion costs to deal with the leak in the April-June quarter.

Moeco holds a 10% stake in the offshore oil block where the spill occurred. The U.S. oil company Anadarko Petroleum Corp. (APC) has a 25% stake, while BP owns the reminder.

Mitsui & Co. said there is uncertainty about "how to calculate the total claimed amount." Moeco's liability "would be zero as of Sept. 30, 2010 at the minimum level" if certain conditions are met in the joint operating agreement.

Anadarko has said it won't pay bills related to the spill while a federal investigation is ongoing.

Other companies, including oil rig operator Transocean Ltd. (RIG) and oil services company Halliburton Co. (HAL), which performed cementing work on the well, might be held responsible.

Mitsui & Co.'s financial results are based on U.S. accounting standards.

-By Mari Iwata and Atsuko Fukase, Dow Jones Newswires; 813-6269-2798; mari.iwata@dowjones.com

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