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Financial results presentation1662Japan Petroleum Exploration Co.,Ltd.Energy Resources

Financial Results Briefing Materials for the Second Quarter of the Fiscal Year Ending March 2027

In the second quarter of the fiscal year ending March 2027, revenue declined year on year, while operating profit and interim net income increased, mainly due to higher crude oil selling prices. The full-year forecast was revised upward to reflect higher crude oil prices, equity-method investment gains and gains on the sale of investment securities.

Worth reading
92Important
Scored from 5 of 6 sections
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
60
¥100 million (increase in full-year operating profit forecast)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationSecond quarter of the fiscal year ending March 202712 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales152,668 Millions of yen-9.0%
Operating profit30,047 Millions of yen+18.0%
Ordinary income33,650 Millions of yen+2.0%
Net income30,820 Millions of yen+14.0%
Results for the three months of the current quarter
Net Sales
82,683 Millions of yen
Full-year earnings forecast
Net Sales
336,000 Millions of yen
Gross profit
103,000 Millions of yen
Operating profit
52,000 Millions of yen
Ordinary income
53,000 Millions of yen
Profit attributable to owners of the parent
70,000 Millions of yen
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¥121 hundred million
  • Domestic E&P¥-10 hundred million
  • Infrastructure & Utilities¥-58 hundred million
  • Other¥-7 hundred million
  • Gain on sale of investment securities¥103 hundred million
  • LNG derivative gain (loss)¥21 hundred million
  • Interest expenses¥-12 hundred million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Crude oil CIF (JCC)94.6 USD/bbl
  • WTI82.6 USD/bbl
  • Foreign exchange154.8 JPY/USD
  • Number of LNG alternative procurements3 vessels
  • JCC (October–December 2026)85 USD/bbl
  • JCC (January–March 2027)80 USD/bbl
  • JKM (October–December 2026)25 USD/MMBtu
  • JKM (January–March 2027)20 USD/MMBtu
New initiatives
  • Acquisition of U.S. Fundare tight oil and gas assets
  • Acquisition of Norwegian E&P assets
  • Advancement of development of the Guban block in Indonesia
  • Establishment of a new company and exploratory drilling for the CCS project in the Tomakomai area
  • Advancement of the JAPEX Tomakomai battery storage business toward commercial operation in fiscal 2027
  • Issuance of the first unsecured corporate bond
Key KPIsA metric the company considers important as a management benchmark.
  • Crude oil sales volume5,533 thousand bbl
    Year on year against the same period last year±0%
  • Natural gas and overseas sales volume7,809 million cf
    Year on year against the same period last year+133%
  • Domestic natural gas sales volume13,400 million cf
    Year on year against the same period last year-3%
  • LNG sales volume74 thousand tonnes
    Year on year against the same period last year+5%
  • Electricity sales volume1,208 million kWh
    Year on year against the same period last year-30%
  • WTI82.59 USD/bbl
    Year on year against the same period last year+14.93
  • Crude oil CIF (JCC)108.24 USD/bbl
    Year on year against the same period last year+34.09
  • Foreign exchange159.5 JPY/USD
    Year on year against the same period last year+13.02
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Crude oil sales volume5,533 thousand bbl
  • Crude oil CIF (JCC)108.24 USD/bbl
  • Natural gas and overseas sales volume7,809 million cf
  • Domestic natural gas sales volume13,400 million cf
  • LNG sales volume74 thousand tonnes
  • Electricity sales volume1,208 million kWh
Segment results
Overseas E&P
Operating profit
¥257 hundred million
Year on year against the same period last year+121.0%
Domestic E&P
Operating profit
¥79 hundred million
Year on year against the same period last year-10.0%
Infrastructure & Utilities
Net Sales
78,645 Millions of yen
Operating profit
¥28 hundred million
Year on year against the same period last year
Operating profit¥-58 hundred million
Other
Operating profit
¥-65 hundred million
Year on year against the same period last year-7.0%
Medium-term management plan targets
Fiscal 2031
Net operating profit after tax¥80.0 billion
ROEAt least 10%
ROICAt least 8%
Growth investment¥900 billion
FY2035
Net operating profit after tax¥120.0 billion
ROEAt least 12%
ROICAt least 10%
Growth investment¥1.5 trillion
Financial targets
ROE
Full-year outlook for the fiscal year ending March 202711.0％
Fiscal 2031At least 10%
FY2035At least 12%
ROIC
Full-year outlook for the fiscal year ending March 20275.5％
Fiscal 2031At least 8%
FY2035At least 10%
Interest-bearing debt/EBITDA multiple
Full-year outlook for the fiscal year ending March 20271.0x
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
  • ¥31 100 million deterioration
    DetailsReduction in remuneration oil due to the suspension of production at the Garraf oil field
  • ¥180 100 million deterioration
    DetailsHigher costs from spot LNG procurement
Capital expenditures
¥36,000 million cash payments for purchases of property, plant and equipment in the full fiscal year ending March 2027
Annual Dividend
Annual¥45.00
Interim¥22.50/CNY
End of period¥22.50/CNY
Payout ratio
Based on a consolidated payout ratio of 30%
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredSecond quarter of the fiscal year ending March 2027
Net Sales152,668 Millions of yen (YoY -9.0%)
Operating profit30,047 Millions of yen (YoY +18.0%)
Ordinary income33,650 Millions of yen (YoY +2.0%)
Net income30,820 Millions of yen (YoY +14.0%)
Results for the three months of the current quarterNet Sales 82,683 Millions of yen / Operating profit Not disclosed / Ordinary income Not disclosed / Interim net income attributable to owners of the parent Not disclosed
Full-year earnings forecastNet Sales 336,000 Millions of yen / Gross profit 103,000 Millions of yen / Operating profit 52,000 Millions of yen / Ordinary income 53,000 Millions of yen / Profit attributable to owners of the parent 70,000 Millions of yen
Segment resultsOverseas E&P Operating profit ¥257 hundred million / Year on year against the same period last year ¥121 hundred million / Domestic E&P Operating profit ¥79 hundred million / Year on year against the same period last year ¥-10 hundred million / Infrastructure & Utilities Net Sales 78,645 Millions of yen / Operating profit ¥28 hundred million / Year on year against the same period last year Operating profit ¥-58 hundred million / Other Operating profit ¥-65 hundred million / Year on year against the same period last year ¥-7 hundred million
Breakdown of Factors Affecting the ChangeFactors Overseas E&P / Amount ¥121 hundred million, Factors Domestic E&P / Amount ¥-10 hundred million, Factors Infrastructure & Utilities / Amount ¥-58 hundred million, Factors Other / Amount ¥-7 hundred million, Factors Gain on sale of investment securities / Amount ¥103 hundred million, Factors LNG derivative gain (loss) / Amount ¥21 hundred million, Factors Interest expenses / Amount ¥-12 hundred million
Key KPIsIndicator name Crude oil sales volume / Value 5,533 thousand bbl / Year on year against the same period last year ±0%, Indicator name Natural gas and overseas sales volume / Value 7,809 million cf / Year on year against the same period last year +133%, Indicator name Domestic natural gas sales volume / Value 13,400 million cf / Year on year against the same period last year -3%, Indicator name LNG sales volume / Value 74 thousand tonnes / Year on year against the same period last year +5%, Indicator name Electricity sales volume / Value 1,208 million kWh / Year on year against the same period last year -30%, Indicator name WTI / Value 82.59 USD/bbl / Year on year against the same period last year +14.93 USD/bbl, Indicator name Crude oil CIF (JCC) / Value 108.24 USD/bbl / Year on year against the same period last year +34.09 USD/bbl, Indicator name Foreign exchange / Value 159.5 JPY/USD / Year on year against the same period last year +13.02 JPY/USD
Unit price and quantity metricsIndicator name Crude oil sales volume / Value 5,533 thousand bbl, Indicator name Crude oil CIF (JCC) / Value 108.24 USD/bbl, Indicator name Natural gas and overseas sales volume / Value 7,809 million cf, Indicator name Domestic natural gas sales volume / Value 13,400 million cf, Indicator name LNG sales volume / Value 74 thousand tonnes, Indicator name Electricity sales volume / Value 1,208 million kWh
Assumptions Underlying the Business OutlookItem Crude oil CIF (JCC) / Value 94.6 USD/bbl, Item WTI / Value 82.6 USD/bbl, Item Foreign exchange / Value 154.8 JPY/USD, Item Number of LNG alternative procurements / Value 3 vessels, Item JCC (October–December 2026) / Value 85 USD/bbl, Item JCC (January–March 2027) / Value 80 USD/bbl, Item JKM (October–December 2026) / Value 25 USD/MMBtu, Item JKM (January–March 2027) / Value 20 USD/MMBtu
Risk amount incorporated into the outlookDetails Reduction in remuneration oil due to the suspension of production at the Garraf oil field / Amount ¥31 100 million deterioration, Details Higher costs from spot LNG procurement / Amount ¥180 100 million deterioration
Medium-term management plan targetsFiscal 2031 Net operating profit after tax ¥80.0 billion / ROE At least 10% / ROIC At least 8% / Growth investment ¥900 billion / FY2035 Net operating profit after tax ¥120.0 billion / ROE At least 12% / ROIC At least 10% / Growth investment ¥1.5 trillion
Financial targetsROE Full-year outlook for the fiscal year ending March 2027 11.0％ / Fiscal 2031 At least 10% / FY2035 At least 12% / ROIC Full-year outlook for the fiscal year ending March 2027 5.5％ / Fiscal 2031 At least 8% / FY2035 At least 10% / Interest-bearing debt/EBITDA multiple Full-year outlook for the fiscal year ending March 2027 1.0x
Annual DividendAnnual ¥45.00 / Interim ¥22.50/CNY / End of period ¥22.50/CNY
Payout ratioBased on a consolidated payout ratio of 30%
Capital expenditures¥36,000 million (cash payments for purchases of property, plant and equipment in the full fiscal year ending March 2027)
New initiativesAcquisition of U.S. Fundare tight oil and gas assets, Acquisition of Norwegian E&P assets, Advancement of development of the Guban block in Indonesia, Establishment of a new company and exploratory drilling for the CCS project in the Tomakomai area, Advancement of the JAPEX Tomakomai battery storage business toward commercial operation in fiscal 2027, Issuance of the first unsecured corporate bond
Items this document does not state (11)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesProgress against full-year forecastSelf-assessment against the planNumber of stores and locationsNumber of employeesAcquisition 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 increase in second-quarter operating profit was due to higher crude oil selling prices and increased crude oil sales volumes from overseas E&P operations. The upward revision to the full-year forecast was due to higher crude oil selling prices, increased equity-method investment gains 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.
Financial Results Briefing Materials for the Second Quarter of the Fiscal Year Ending March 2027 | Japan Petroleum Exploration Co.,Ltd. (1662) timely disclosure | Komori