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Japan CreditStats: Excess Capacity Continues to Plague Oil Industry Nov 00 Product Image

Japan CreditStats: Excess Capacity Continues to Plague Oil Industry Nov 00

  • ID: 2032792
  • November 2000
  • Region: Japan
  • Standard & Poors

Abstract
The credit quality of the Japanese oil industry is expected to remain weak over the medium term, despite efforts by companies to improve their operations and profitability. Persistent excess supply, both at refineries and downstream service stations, combined with anemic growth in demand, will continue to pressure wholesale and retail prices, making it difficult for oil companies to fully transfer rising crude oil and other feedstock prices to consumers. Although Japanese oil companies are forming strategic alliances to cut costs, such consolidation is not expected to result in a meaningful reduction in production capacity. The Japanese refining market continues to face excess capacity, estimated at as much as 20%. Improvement in the industrywide supply-demand imbalance is likely to be slow,...

Companies mentioned in this report are: Cosmo Oil Co. Ltd.,TonenGeneral Sekiyu KK,Japan Energy Corp.,Showa Shell Sekiyu KK,Nippon Oil Corp.

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research READ MORE >

Cosmo Oil Co. Ltd.,TonenGeneral Sekiyu KK,Japan Energy Corp.,Showa Shell Sekiyu KK,Nippon Oil Corp.

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