Aug. 2 (Bloomberg) -- Japanese energy stocks advanced after AOC Holdings Inc. raised its fiscal half-year net income forecast and crude prices surged to a record in New York.

``The view is that demand for raw materials such as oil is still growing and it's not going to slow any time soon,'' said Shigeharu Shiraishi, who helps manage about $15 billion in assets as a managing director at Societe Generale Asset Management (Japan) Co. in Tokyo. ``That's feeding into earnings directly and those companies that are controlling the costs wisely will continue to do well.''

Key indexes were little changed. The Nikkei 225 Stock Average slipped 0.65 point to 11,946.27 at 10:09 a.m. in Tokyo. The Topix index lost 0.45 point to 1211.16. Nikkei 225 futures for September delivery lost 0.1 percent to 11,960 in Osaka and fell 0.1 percent to 11,950 in Singapore.

Shares of companies that reported lower earnings fell, including Olympus Corp., Pokka Corp. and Wowow Inc.

AOC Holdings, an oil producer and refiner, jumped 79 yen, or 4.4 percent, to 1,869 after the company raised its half-year net income forecast 56 percent to 7 billion yen ($62.4 million) as higher oil prices helped boost the value of inventories.

Crude prices reached a record $62.30 a barrel in New York as the death of Saudi Arabia's King Fahd heightened concern about the stability of the world's No. 1 oil exporter. Futures closed up 1.7 percent at $61.57.

Other oil-related stocks gained. Inpex Corp., Japan's largest oil explorer, added 11,000 yen, or 1.5 percent, to 759,000. Nippon Oil Corp., Japan's biggest refiner, added 9 yen, or 1.2 percent, to 786. Nippon Oil is set to report earnings later today.

Earnings Watch

Olympus, the world's fourth-largest seller of digital cameras, lost 55 yen, or 2.4 percent, to 2,210 after the company reported first-quarter profit fell 62 percent on shrinking sales of the devices.

Pokka Corp., a soft-drink maker, cut its full-year net income forecast 78 percent and also lowered its sales forecast 3.3 percent. The stock slumped 28 yen, or 4.9 percent, to 546.

Wowow, the satellite broadcaster, dropped 20,000 yen, or 5 percent, to 381,000 after lowering its fiscal first-half profit forecast by 26 percent.

Astellas Pharma Inc., Japan's second-largest drugmaker, Mitsubishi Chemical Corp., the nation's biggest chemical maker, are scheduled to report today.

Astellas declined 40 yen, or 1.1 percent, to 3,610, while Mitsubishi Chemical added 1 yen, or 0.3 percent, to 336.

Among the best performers, Ibiden Co., a maker of ceramics, housing materials and electronics, jumped 180 yen, or 5.7 percent, to 3,360 after raising its net income forecast for the year ending March 31 by 24 percent to 20 billion yen after first-quarter net income climbed more than expected.

To contact the reporter for this story: Tomoko Yamazaki in Tokyo at tyamazaki@bloomberg.net.

Last Updated: August 1, 2005 21:10 EDT