Japan's top refiner, Eneos, on Wednesday raised its net profit forecast to ¥240 billion ($1.6 billion) for the year ending in March 2024, as higher oil prices and a weaker yen are set to support results after a drop in its quarterly profit.

Eneos posted a 31% fall in second-quarter net profit to Sept. 30 to ¥171.7 billion, but said its full-year result was expected to increase by 67% from last year. The company had earlier expected net profit for the year to be ¥180 billion.

"We have raised a full-year operating profit estimate at oil and gas development segment due to a weaker yen and cost cutting," Eneos Holdings President Takeshi Saito said during a news conference.

Eneos forecast a ¥50 billion evaluation gain on its oil and petroleum product inventories to reflect the yen's depreciation and higher oil prices, he said.

"While the company raised their outlook ... we think that Eneos' new FY3/24 guidance is very conservative," Jefferies analysts said in a note.

Saito also said Eneos, which is expanding in renewable energy to cut its carbon footprint, plans to withdraw from the Yunlin offshore wind farm project in Taiwan because of soaring material prices and sea conditions.

"We have held discussions with the parties involved with the idea of withdrawing from this project and have reached a certain agreement," he said, declining to provide details.

Cosmo Energy Holdings, Japan's third-biggest refiner, on Wednesday raised its net profit forecast for the year ending in March 2024 to ¥78 billion, a 15% increase year-on-year and up from ¥55 billion it had forecast earlier, as the weaker yen boosts inventory valuation.

Cosmo also raised its full-year dividend forecast to ¥300 per share from ¥250, which includes interim dividend of ¥150. Its second quarter net profit was 62% down to ¥36.1 billion year-on-year on weaker petroleum and oil development business.