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Shell fuel card news: Japanese Shell subsidiary forecasts $11 million net income

23 February, 10
Showa Shell Sekiyu KK, a Japanese subsidiary of Shell, has forecast a net income of one billion yen ($11 million) for 2010.

The company estimates 2,370.0 billion yen in consolidated sales. This would be the oil refiner's first profit in three years.

A gradual rise in oil price and recovery in overseas demands are behind the prediction.

The forecast, according to the company's website, is based on the assumption that the exchange rate will be 90 yen per dollar and that crude oil prices will be $75 per barrel.

However, some believe the refiner's forecast is too positive. Bloomberg reports that Hirofumi Kawachi, an analyst at Mizuho Investors Securities in Tokyo, said: "It may be a little too early to be optimistic for Japanese refiners given that they have to compete with their Asian rivals in the export market for oil products."

Showa Shell Sekiyu KK says it plans to use profits to invest in the solar business part of its growth strategy.

posted by James RichmondADNFCR-2675-ID-19631811-ADNFCR

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Shell fuel card news: Japanese Shell subsidiary forecasts $11 million net income