Expansion into related fields and new businesses outside E&P

「Tahara Biomass Power Plant begins commercial operations (April)」

「The Abashiri Biomass No. 2 Power Plant and Abashiri Biomass No. 3 Power Plant, affiliated companies in which our company participates, have commenced commercial operations as biomass power plants using domestically sourced wood chips from Hokkaido as fuel.」

「While leveraging the expertise and experience of our existing businesses, we will pursue the expansion of renewable energy projects in which our company participates.」

「Revenue from the Infrastructure and Utilities business increased by ¥2,400 million year on year, or 5.5%, to ¥46,382 million. This was despite declines in domestic natural gas sales prices and volumes, as electricity sales volumes increased following the Fukushima Natural Gas Power Plant operating for the full year.」

「The main factors behind the year-on-year decline in revenue but increase in profit were an improvement in the domestic sales margins for crude oil and diluted bitumen due to higher crude oil prices, and an increase in electricity sales volumes resulting from the Fukushima Natural Gas Power Plant operating for the full year.」

「The fiscal year saw significant progress, typified by the Fukushima Natural Gas Power Plant of Fukushima Gas Power Co., Ltd., in which our company holds approximately a 33% stake, commencing full commercial operations, with the power business growing into a core business of the Infrastructure and Utilities segment.」

「Revenue from the Infrastructure and Utilities business increased by ¥6,428 million year on year, or 10.5%, to ¥67,691 million. This was despite declines in domestic natural gas sales volumes and prices and in LNG prices, as electricity revenue was added in earnest following the start of commercial operations at Unit 2 of the Fukushima Natural Gas Power Plant in August, in addition to Unit 1, which began operations in April last year.」

「Revenue from the Infrastructure and Utilities business increased by ¥3,679 million year on year, or 9.1%, to ¥43,982 million. This was despite declines in the sales volumes and prices of domestic natural gas and in LNG prices, as electricity revenue was added in earnest following the start of commercial operations at Unit 2 of the Fukushima Natural Gas Power Plant in August, in addition to Unit 1, which began operations in April this year.」

「During the first quarter of the current consolidated fiscal year, our group, comprising our company and its affiliates, commenced full-scale operations in the power business following the start of commercial operations at the Fukushima Natural Gas Power Plant. Accordingly, to clearly distinguish the E&P and non-E&P businesses, we changed the classification of our businesses to E&P, Infrastructure and Utilities, and Other Businesses.」

「We aim to create and expand new businesses in environmentally focused fields outside E&P.」

「We aim to create and expand new businesses in environmentally focused fields outside E&P.」

「As the development plan is no longer premised on the PNW business, the expected volume of shale gas sales underlying the calculation of the recoverable amount of JML's operating assets has declined, but there has been no decrease in the total volume of shale gas resources contained in the acreage. Our company and JML will continue to pursue the maximisation of upstream business value and earnings by leveraging our expertise in oil and natural gas E&P, including exploration, development and production.」

「JML's shale gas development and production project, an upstream business currently under way, is producing approximately 400 million cubic feet per day, equivalent to approximately 75,000 barrels of oil per day. Our company and JML will continue to pursue the maximisation of upstream business value while considering all options, carry out efficient development by leveraging our E&P expertise, which is one of our strengths, and advance initiatives to realise earnings contributions through the utilisation of our substantial shale gas assets.」

「JML's shale gas development and production project, an upstream business currently under way, is producing approximately 500 million cubic feet per day, equivalent to approximately 90,000 barrels of oil per day. Our company and JML will continue to pursue the maximisation of upstream business value while considering all options, carry out efficient development by leveraging our E&P expertise, which is one of our strengths, and advance initiatives to realise earnings contributions through the utilisation of our substantial shale gas assets.」

「Accordingly, while leveraging the expertise and experience accumulated in our E&P business, to which our operations have been almost exclusively dedicated, we aim to actively expand into related areas of the oil and natural gas supply business, including power generation, such as natural gas-fired power generation, LNG cargo trading, businesses surrounding LNG terminals and other areas, as well as new businesses with an affinity and commonality with our E&P expertise, such as commercialising environmental and new-technology businesses and exploring marine mineral resources, in order to increase earnings from businesses beyond conventional E&P.」

「Accordingly, while leveraging the expertise and experience accumulated in our E&P business, to which our operations have been almost exclusively dedicated, we aim to actively expand into related areas of the oil and natural gas supply business, including power generation, such as natural gas-fired power generation, LNG cargo trading and businesses surrounding LNG terminals, as well as new businesses with an affinity and commonality with our E&P expertise, such as commercialising environmental and new-technology businesses and exploring marine mineral resources, in order to increase earnings from businesses beyond conventional E&P.」