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japancorp.net: Showa Shell Raises Earnings Estimates for 2007

Tokyo, Nov 8, 2007 (Jiji Press) – Showa Shell Sekiyu K.K. <5002> said Thursday it has raised its group recurring profit forecast for the year to December to 80 billion yen from 70 billion yen as high crude oil prices are expected to lift its appraisal profit on oil inventories.

The Japanese oil distributor also increased its net profit projection to 45 billion yen from 39 billion yen. Sales are estimated at 3.06 trillion yen, up from the previously estimated 2.96 trillion yen.

The company now assumes a crude oil price of 77 dollars per barrel for October-December, up from 64.5 dollars it had estimated for July-December, leading to higher-than-expected appraisal profit on its oil inventories.

For the first nine months of 2007, Showa Shell’s group net profit declined 20.7 pct from a year before to 33,339 million yen, and recurring profit fell 12.7 pct to 60,531 million yen, on sales of 2,297,949 million yen, up 5.5 pct.

The profit falls came as its appraisal profit on oil inventories declined because crude oil prices rose at a slower pace in the nine-month period than in the same period last year, company officials said.

But excluding the appraisal profit, the company logged an increase in recurring profit thanks to a recovery in its profit margin for gasoline and the strength of its petrochemical operations.

By Jiji Press, (c) Jiji Press 

Copyright © 2007 JCN. All rights reserved. A division of Japan Corporate News Network KK.

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