Transforming the Earnings Structure by Keeping Interest-Bearing Debt/EBITDA Below 2x and Allocating Investment to Non-E&P Businesses
First written in FY2018. 2 of 7 entries say "Reframed", first in FY2020. Latest entry: FY2026.
Japan Petroleum Exploration moved to the "Worse" side of this theme in 2020.
The whole theme swung hardest in 2024: 3 of 14 companies on the "Worse" side.
1 other company's latest entry also says "Reframed".
- FY2026ReframedAnnual report
「We will maintain financial soundness so that the interest-bearing debt/EBITDA ratio remains below 3x even with crude oil at US$50 per barrel and an exchange rate of ¥110 to the US dollar.」
In addition to explaining the achievement and maintenance of interest-bearing debt/EBITDA below 2, the new plan defines financial discipline as maintaining the ratio below 3x with oil at US$50 and an exchange rate of ¥110 to the US dollar. - 2026-04-22RaisedManagement Planning
「Build a core asset portfolio through ¥1.5 trillion in growth investment」
Growth investment was increased from the cumulative ¥450 billion planned for FY2026 through FY2030 under the previous plan to ¥1.5 trillion cumulatively for FY2026 through FY2035 under the new plan. - FY2025RestatedAnnual report
「The target of interest-bearing debt/EBITDA below 2 has been achieved for the second consecutive fiscal year.」
The company explains that it achieved the financial discipline target of interest-bearing debt/EBITDA below 2 for the second consecutive fiscal year. - FY2022AchievedAnnual report
「As a result, the target of interest-bearing debt/EBITDA below 2 has been achieved, and the company will continue to maintain it as its financial discipline.」
The company achieved its financial discipline target of below 2 for the interest-bearing debt/EBITDA ratio, which had deteriorated to 3.2x in the previous fiscal year, as borrowings declined following the transfer of the Canadian assets and other measures. - FY2021WorsenedAnnual report
「Fiscal year ending March 2020 Interest-bearing debt ¥140.8 billion EBITDA ¥58.2 billion Interest-bearing debt/EBITDA (times) 2.4 Fiscal year ending March 2021 Interest-bearing debt ¥118.7 billion EBITDA ¥37.1 billion Interest-bearing debt/EBITDA (times) 3.2」
Interest-bearing debt declined from ¥140.8 billion to ¥118.7 billion, but the interest-bearing debt/EBITDA ratio increased from 2.4x to 3.2x as EBITDA declined, exceeding the financial discipline benchmark of below 2. - FY2020ReframedAnnual report
「For fiscal 2022, under the financial discipline described above, we will promote growth investments based on an E&P-to-non-E&P ratio of 1:1, while making long-term stable dividends our basic policy and seeking to further enhance shareholder returns over the medium to long term. We also aim to reduce interest-bearing debt to approximately ¥100 billion-¥120 billion.」
The previous explanation of the non-E&P investment ratio and earnings contribution ratio has been reorganized into a capital allocation policy that includes a 1:1 ratio for E&P versus non-E&P growth investments and reducing interest-bearing debt to approximately ¥100 billion-¥120 billion. - FY2018First statedAnnual report
「Under financial discipline based on a target of interest-bearing debt/EBITDA below 2, we will secure funds for new investments and allocate approximately half of them to non-E&P businesses, transforming the business structure so that the respective contributions to earnings from E&P and non-E&P businesses are approximately 6:4.」
The company has newly established several specific quantitative benchmarks for interest-bearing debt/EBITDA, the allocation of investment funds to non-E&P businesses, and the respective contributions to earnings from E&P and non-E&P businesses.