By Megumi Yamanaka
Aug. 13 (Bloomberg) — Shares of Showa Shell Sekiyu K.K., the Japanese unit of Royal Dutch Shell Plc, had their biggest gain in more than three years, after the company raised its profit forecast.
The shares climbed as much as 88 yen, or 6.9 percent, to 1,357 yen and traded at 1,340 yen at the 11 a.m. morning break on the Tokyo Stock Exchange. The today’s gain is the biggest since July 6, 2004, when the stock advanced as much as 9.2 percent.
The Tokyo-based refiner on Aug. 10 raised its full-year profit forecast to 39 billion yen ($330 million), an increase of more than 10 percent from 35 billion yen it had estimated in May. Showa Shell released its first-half earnings and estimates for 2007 after the market close on Friday.
The company got an order for an additional 40,000 kiloliters of fuel oil for August delivery from Tokyo Electric Power Co., which shut a nuclear station following a July 16 earthquake. The refiner expects to receive an additional order from the utility in September, and plans to import fuel oil mainly from Indonesia, Showa Shell’s spokesman Ichirou Miyawaki said in Tokyo Aug. 10.
Tokyo Electric is being forced to burn more fuel oil to fire thermal power plants after the magnitude 6.8 earthquake shut the Kashiwazaki Kariwa plant, the world’s biggest nuclear power station. The earthquake in Niigata prefecture caused radiation leaks and a fire at the plant.
Saudi Aramco, the world’s largest state oil company, owns 14.96 percent of Showa Shell and is its second-biggest stakeholder, according to March 29 report. Shell holds 33.24 percent.
To contact the reporters on this story: Megumi Yamanaka in Tokyo at [email protected] ;
Last Updated: August 12, 2007 23:07 EDT
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