Komori
Presentation materials for financial results1662Japan Petroleum Exploration Co.,Ltd.Energy Resources

Financial Results Briefing Materials for the Fiscal Year Ending March 2026

For the fiscal year ended March 2026, revenue and profit declined due to lower crude oil and natural gas prices and lower LNG sales volumes. For the fiscal year ending March 2027, net income is expected to recover, driven by higher production in the U.S. business and a gain on the transfer of the Hokkaido and Gas businesses, while ordinary income is expected to decline due to costs related to alternative LNG procurement and other factors.

Worth reading
65In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
-230
¥100 million (year-on-year decrease in operating profit)
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsFiscal year ending March 2026, full year11 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥340,336 million-13.0%
Operating profit¥38,915 million-37.0%
Ordinary income¥61,556 million-4.0%
Net income¥53,427 million-34.0%
Selling, general and administrative expenses¥35,860 million
Results for the three months of the current quarterQuarterly figures from 1Q through 4Q are presented. Example: 4Q FY2026 revenue of ¥80,018 million, operating profit of ¥6,834 million, and net income attributable to owners of the parent of ¥13,648 million
Full-year earnings forecast
Net Sales
¥303,000 million
Gross profit
¥87,000 million
Operating profit
¥41,000 million
Ordinary income
¥45,000 million
Net income
¥60,000 million
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Overseas E&P operating profit-94 Hundreds of millions of yen
  • Domestic E&P operating profit-87 Hundreds of millions of yen
  • I/U operating profit-32 Hundreds of millions of yen
  • Other operating profit-16 Hundreds of millions of yen
  • Gain on sale of investment securities-456 Hundreds of millions of yen
  • Foreign-Exchange Gains and Losses100 Hundreds of millions of yen
  • Equity-Method Investment Income and Losses43 Hundreds of millions of yen
  • Derivative gains (losses)76 Hundreds of millions of yen
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • WTI73 USD/bbl
  • Crude oil CIF (JCC)74.91 USD/bbl
  • Foreign exchange152.9 JPY/USD
  • 1Q oil price90 USD/bbl
  • 1Q foreign exchange rate158 JPY/USD
  • Foreign exchange rate from 2Q onward150 JPY/USD
New initiatives
  • Optimizing the development and maximizing the value of the U.S. Verdad assets
  • Exploration and development of Norway's newly acquired PL1119 license
  • Development of the Suchtanganga gas field in the Gubang block, Indonesia
  • Drilling of the second exploratory well for the Tomakomai CCS project
  • Transfer of the Hokkaido and Gas businesses
Key KPIsA metric the company considers important as a management benchmark.
  • FY2025 production volume (BOE per day)39 kboed
  • ROE9.2 %
  • Proved reserves255 million BOE
  • Interest-bearing debt/EBITDA multiple0.4 times
    Year on year against the same period last year+0.3%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Sales volumes and revenue for crude oil, natural gas, LNG and electricity, as well as crude oil and LNG prices
Segment results
Japan
Operating profit
¥30,869 million
Share of Profit of Investments Accounted for Using the Equity Method
¥193 million
North America
Operating profit
¥17,082 million
Share of Profit of Investments Accounted for Using the Equity Method
¥2,931 million
Europe
Operating profit
¥1,626 million
Middle East
Operating profit
¥2,968 million
Share of Profit of Investments Accounted for Using the Equity Method
¥0 million
Medium-term management plan targets
Business profit
Target value300 Hundreds of millions of yen
Target fiscal yearFiscal 2026
Actual results423 Hundreds of millions of yen
ROE
Target value5 %
Target fiscal yearFiscal 2026
Actual results9.2 %
Growth Investment
Target value2,750 Hundreds of millions of yen
Target fiscal yearCumulative total from FY2022 through FY2026
Actual results4,790 Hundreds of millions of yen
Financial targets
ROE
Target value5 %
Actual results9.2 %
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
72 Hundreds of millions of yen
DetailsDeterioration in operating profit due to alternative spot LNG procurement resulting from the closure of the Strait of Hormuz and the suspension of production at the Garraf oil field
Annual Dividend
Fiscal year ending March 2026
Annual¥65 per share
Interim¥20 per share
End of period¥45 per share
Forecast for the fiscal year ending March 2027
Annual¥45 per share
Interim¥22.5 per share
End of period¥22.5 per share
Payout ratio
30 %
DetailsNet income used as the basis for a consolidated payout ratio of 30%
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredFiscal year ending March 2026, full year
Net Sales¥340,336 million (YoY -13.0%)
Operating profit¥38,915 million (YoY -37.0%)
Ordinary income¥61,556 million (YoY -4.0%)
Net income¥53,427 million (YoY -34.0%)
Selling, general and administrative expenses¥35,860 million
Results for the three months of the current quarterQuarterly figures from 1Q through 4Q are presented. Example: 4Q FY2026 revenue of ¥80,018 million, operating profit of ¥6,834 million, and net income attributable to owners of the parent of ¥13,648 million
Full-year earnings forecastNet Sales ¥303,000 million / Gross profit ¥87,000 million / Operating profit ¥41,000 million / Ordinary income ¥45,000 million / Net income ¥60,000 million
Segment resultsJapan Operating profit ¥30,869 million / Share of Profit of Investments Accounted for Using the Equity Method ¥193 million / North America Operating profit ¥17,082 million / Share of Profit of Investments Accounted for Using the Equity Method ¥2,931 million / Europe Operating profit ¥1,626 million / Share of Profit of Investments Accounted for Using the Equity Method Not disclosed / Middle East Operating profit ¥2,968 million / Share of Profit of Investments Accounted for Using the Equity Method ¥0 million
Breakdown of Factors Affecting the ChangeFactors Overseas E&P operating profit / Amount -94 Hundreds of millions of yen, Factors Domestic E&P operating profit / Amount -87 Hundreds of millions of yen, Factors I/U operating profit / Amount -32 Hundreds of millions of yen, Factors Other operating profit / Amount -16 Hundreds of millions of yen, Factors Gain on sale of investment securities / Amount -456 Hundreds of millions of yen, Factors Foreign-Exchange Gains and Losses / Amount 100 Hundreds of millions of yen, Factors Equity-Method Investment Income and Losses / Amount 43 Hundreds of millions of yen, Factors Derivative gains (losses) / Amount 76 Hundreds of millions of yen
Key KPIsIndicator name FY2025 production volume (BOE per day) / Value 39 kboed / Year on year against the same period last year Not disclosed, Indicator name ROE / Value 9.2 % / Year on year against the same period last year Not disclosed, Indicator name Proved reserves / Value 255 million BOE / Year on year against the same period last year Not disclosed, Indicator name Interest-bearing debt/EBITDA multiple / Value 0.4 times / Year on year against the same period last year 0.3 times
Unit price and quantity metricsSales volumes and revenue for crude oil, natural gas, LNG and electricity, as well as crude oil and LNG prices
Assumptions Underlying the Business OutlookItem WTI / Value 73 USD/bbl, Item Crude oil CIF (JCC) / Value 74.91 USD/bbl, Item Foreign exchange / Value 152.9 JPY/USD, Item 1Q oil price / Value 90 USD/bbl, Item 1Q foreign exchange rate / Value 158 JPY/USD, Item Foreign exchange rate from 2Q onward / Value 150 JPY/USD
Risk amount incorporated into the outlookAmount 72 Hundreds of millions of yen / Details Deterioration in operating profit due to alternative spot LNG procurement resulting from the closure of the Strait of Hormuz and the suspension of production at the Garraf oil field
Medium-term management plan targetsBusiness profit Target value 300 Hundreds of millions of yen / Target fiscal year Fiscal 2026 / Actual results 423 Hundreds of millions of yen / ROE Target value 5 % / Target fiscal year Fiscal 2026 / Actual results 9.2 % / Growth Investment Target value 2,750 Hundreds of millions of yen / Target fiscal year Cumulative total from FY2022 through FY2026 / Actual results 4,790 Hundreds of millions of yen
Financial targetsROE Target value 5 % / Actual results 9.2 %
Annual DividendFiscal year ending March 2026 Annual ¥65 per share / Interim ¥20 per share / End of period ¥45 per share / Forecast for the fiscal year ending March 2027 Annual ¥45 per share / Interim ¥22.5 per share / End of period ¥22.5 per share
Payout ratioValue 30 % / Details Net income used as the basis for a consolidated payout ratio of 30%
New initiativesOptimizing the development and maximizing the value of the U.S. Verdad assets, Exploration and development of Norway's newly acquired PL1119 license, Development of the Suchtanganga gas field in the Gubang block, Indonesia, Drilling of the second exploratory well for the Tomakomai CCS project, Transfer of the Hokkaido and Gas businesses
Items this document does not state (11)
Gross Profit MarginOperating profit marginProgress against full-year forecastSelf-assessment against the planNumber of stores and locationsNumber of employeesAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Operating profit for the fiscal year ended March 2026 declined due to lower selling prices for crude oil and natural gas and lower LNG sales volumes. Net income declined due to the absence of gains on the sale of investment securities recorded in the previous fiscal year. For the fiscal year ending March 2027, the forecast incorporates higher crude oil and natural gas sales volumes in the U.S., as well as a gain on the transfer of the Hokkaido and Gas businesses, while factoring in alternative LNG procurement costs resulting from the closure of the Strait of Hormuz and the absence of foreign exchange gains and derivative gains.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Financial Results Briefing Materials for the Fiscal Year Ending March 2026 | Japan Petroleum Exploration Co.,Ltd. (1662) timely disclosure | Komori