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Earnings presentation1662Japan Petroleum Exploration Co.,Ltd.Energy Resources

Fiscal Year Ending March 2027 First-Quarter Financial Results Presentation

In the first quarter of the fiscal year ending March 2027, revenue, operating income and net income fell below the year-earlier levels, due mainly to lower crude oil sales volumes and higher alternative LNG procurement costs. The assumptions for crude oil prices and sales volumes were revised, resulting in an upward revision to the full-year earnings forecast, while the full-year dividend forecast was maintained at ¥45.

Worth reading
87Important
Scored from 5 of 6 sections
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
104
¥100 million (year-on-year decrease in operating profit)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationFirst quarter of the fiscal year ending March 202710 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥65,114 million-21.0%
Operating profit¥6,202 million-63.0%
Ordinary income¥5,773 million-72.0%
Net income¥3,240 million-79.0%
Selling, general and administrative expenses¥9,472 million
Results for the three months of the current quarterRevenue: ¥65,114 million; gross profit: ¥19,603 million; operating income: ¥6,202 million; ordinary income: ¥5,773 million; net income attributable to owners of the parent: ¥3,240 million
Full-year earnings forecast
Net Sales
¥314,000 million
Gross profit
¥94,000 million
Operating profit
¥46,000 million
Ordinary income
¥46,000 million
Profit attributable to owners of the parent
¥65,000 million
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Decrease in overseas E&P operating income-¥2.9 billion
  • Decrease in domestic E&P operating income-¥2.5 billion
  • Decrease in I/U operating income-¥4.9 billion
  • Decrease in other operating income-¥100 million
  • Foreign-Exchange Gains and Losses+¥600 million
  • Equity-Method Investment Income and Losses–¥1.4 billion
  • Other non-operating items-¥3.6 billion
  • Corporate Taxes-¥0.7 billion
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Crude oil CIF (JCC)77.20 USD/bbl
  • WTI74.10 USD/bbl
  • LNG (all-Japan CIF)¥92,800/tonne
  • Foreign exchange¥153.70/USD
New initiatives
  • Decision to acquire a Norwegian E&P license
  • Decision to acquire Fundare, a US tight oil and gas asset
  • Commencement of fuel conversion to natural gas at the Yamagata Prefecture Higashine Omori Industrial Park
  • Establishment of a new company for the CCS business in the Tomakomai area
Key KPIsA metric the company considers important as a management benchmark.
  • WTI71.98 USD/bbl
    Year on year against the same period last year+0.52
  • Crude oil CIF (JCC)94.86 USD/bbl
    Year on year against the same period last year+17.01
  • Foreign exchange158.01 JPY/USD
    Year on year against the same period last year+10.79
  • E&P crude oil sales volume2,179 thousand bbl
    Year on year against the same period last year△9%
  • Natural gas and overseas sales volume2,501 million cf
    Year on year against the same period last year+48%
  • Natural gas and domestic sales volume6,658 million cf
    Year on year against the same period last year△6%
  • LNG sales volume38 thousand tonnes
    Year on year against the same period last year+7%
  • Electricity sales volume473 million kWh
    Year on year against the same period last year△40%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Sales volumes and revenue are provided for crude oil, natural gas, LNG and electricity. Crude oil CIF prices, WTI and all-Japan LNG CIF prices are also provided.
Segment results
Japan
Operating profit
¥2,329 million
Share of Profit of Investments Accounted for Using the Equity Method
¥-47 million
Net Sales
¥46,655 million
North America
Operating profit
¥6,548 million
Share of Profit of Investments Accounted for Using the Equity Method
¥786 million
Net Sales
¥15,633 million
Europe
Operating profit
¥1,340 million
Net Sales
¥2,794 million
Middle East
Operating profit
¥-109 million
Net Sales
¥31 million
Number of stores and locations
E&P business locations: 10 in Japan and 6 overseas. Openings and closures during the period: Not disclosed
Capital expenditures
¥43,000 million full-year forecast for expenditures on the acquisition of property, plant and equipment
Annual Dividend
Annual¥45.00/share
Interim¥22.50/share
End of period¥22.50/share
Payout ratio
Consolidated payout ratio of approximately 30%. Full-year dividend floor: ¥40.00/share.
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredFirst quarter of the fiscal year ending March 2027
Net Sales¥65,114 million (YoY -21.0%)
Operating profit¥6,202 million (YoY -63.0%)
Ordinary income¥5,773 million (YoY -72.0%)
Net income¥3,240 million (YoY -79.0%)
Selling, general and administrative expenses¥9,472 million
Results for the three months of the current quarterRevenue: ¥65,114 million; gross profit: ¥19,603 million; operating income: ¥6,202 million; ordinary income: ¥5,773 million; net income attributable to owners of the parent: ¥3,240 million
Full-year earnings forecastNet Sales ¥314,000 million / Gross profit ¥94,000 million / Operating profit ¥46,000 million / Ordinary income ¥46,000 million / Profit attributable to owners of the parent ¥65,000 million
Segment resultsJapan Operating profit ¥2,329 million / Share of Profit of Investments Accounted for Using the Equity Method ¥-47 million / Net Sales ¥46,655 million / North America Operating profit ¥6,548 million / Share of Profit of Investments Accounted for Using the Equity Method ¥786 million / Net Sales ¥15,633 million / Europe Operating profit ¥1,340 million / Share of Profit of Investments Accounted for Using the Equity Method Not disclosed / Net Sales ¥2,794 million / Middle East Operating profit ¥-109 million / Share of Profit of Investments Accounted for Using the Equity Method Not disclosed / Net Sales ¥31 million
Breakdown of Factors Affecting the ChangeFactors Decrease in overseas E&P operating income / Amount -¥2.9 billion, Factors Decrease in domestic E&P operating income / Amount -¥2.5 billion, Factors Decrease in I/U operating income / Amount -¥4.9 billion, Factors Decrease in other operating income / Amount -¥100 million, Factors Foreign-Exchange Gains and Losses / Amount +¥600 million, Factors Equity-Method Investment Income and Losses / Amount –¥1.4 billion, Factors Other non-operating items / Amount -¥3.6 billion, Factors Corporate Taxes / Amount -¥0.7 billion
Key KPIsIndicator name WTI / Value 71.98 USD/bbl / Year on year against the same period last year +0.52 USD/bbl, Indicator name Crude oil CIF (JCC) / Value 94.86 USD/bbl / Year on year against the same period last year +17.01 USD/bbl, Indicator name Foreign exchange / Value 158.01 JPY/USD / Year on year against the same period last year +10.79 JPY/USD, Indicator name E&P crude oil sales volume / Value 2,179 thousand bbl / Year on year against the same period last year △9%, Indicator name Natural gas and overseas sales volume / Value 2,501 million cf / Year on year against the same period last year +48%, Indicator name Natural gas and domestic sales volume / Value 6,658 million cf / Year on year against the same period last year △6%, Indicator name LNG sales volume / Value 38 thousand tonnes / Year on year against the same period last year +7%, Indicator name Electricity sales volume / Value 473 million kWh / Year on year against the same period last year △40%
Unit price and quantity metricsSales volumes and revenue are provided for crude oil, natural gas, LNG and electricity. Crude oil CIF prices, WTI and all-Japan LNG CIF prices are also provided.
Number of stores and locationsE&P business locations: 10 in Japan and 6 overseas. Openings and closures during the period: Not disclosed
Assumptions Underlying the Business OutlookItem Crude oil CIF (JCC) / Value 77.20 USD/bbl, Item WTI / Value 74.10 USD/bbl, Item LNG (all-Japan CIF) / Value ¥92,800/tonne, Item Foreign exchange / Value ¥153.70/USD
Annual DividendAnnual ¥45.00/share / Interim ¥22.50/share / End of period ¥22.50/share
Payout ratioConsolidated payout ratio of approximately 30%. Full-year dividend floor: ¥40.00/share.
Capital expenditures¥43,000 million (full-year forecast for expenditures on the acquisition of property, plant and equipment)
New initiativesDecision to acquire a Norwegian E&P license, Decision to acquire Fundare, a US tight oil and gas asset, Commencement of fuel conversion to natural gas at the Yamagata Prefecture Higashine Omori Industrial Park, Establishment of a new company for the CCS business in the Tomakomai area
Items this document does not state (12)
Gross Profit MarginOperating profit marginProgress against full-year forecastSelf-assessment against the planNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAcquisition of treasury sharesOrders 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.

The factors behind the decline in first-quarter earnings included lower crude oil sales volumes, higher exploration expenses, increased costs from alternative LNG procurement, lower equity-method investment income, and the change from a valuation gain to a valuation loss on LNG derivatives at the end of the previous fiscal year. The factors behind the upward revision to the full-year forecast included higher crude oil selling prices, higher crude oil and natural gas sales volumes, and gains on the sale of investment securities.

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.
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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Fiscal Year Ending March 2027 First-Quarter Financial Results Presentation | Japan Petroleum Exploration Co.,Ltd. (1662) timely disclosure | Komori