Impairment Losses Caused by Deteriorating Resource Market Conditions and Failure to Meet Performance Targets

「Impairment loss on property, plant and equipment in the oil and gas development business」

「Impairment loss on property, plant and equipment in the oil and gas development business」

「Energy　693　・Realized gain on foreign currency translation adjustments upon the termination of the Qatar LNG business ・Impairment loss on the oil and gas development business in the Gulf of Mexico ・Lower profit in the trading and LNG businesses」

「In the Metals operating segment, the company recognized an impairment loss of ¥60,251 million on its investment in an affiliate related to part of the Chile copper business, as falling copper prices due to weaker Chinese demand resulting from the spread of COVID-19 and other factors were expected to reduce future projected cash flows.」

「Gross profit decreased by ¥10.9 billion, or 45.4%, year on year to ¥13.2 billion due to falling coal prices in the Australian coal business. Operating profit was a loss of ¥0.3 billion, a deterioration of ¥10.2 billion year on year.」

「Gross profit decreased by ¥3.8 billion, or 16.7%, year on year to ¥19.0 billion due to lower profit in the oil and gas development business resulting from falling crude oil and gas prices. Operating profit decreased by ¥2.5 billion, or 40.5%, year on year to ¥3.7 billion.」

「Other non-operating income and expenses resulted in a loss of ¥0.8 billion, an improvement of ¥7.0 billion, or 89.2%, year on year, due to the reversal of the impairment loss recognized in the U.S. Gulf of Mexico oil and gas development business in the same period of the previous year, despite the reversal of the gain on the sale of shares in an affiliated company in the domestic retail business recognized in the same period.」

「The company recognized an impairment loss of ¥118,944 million on property, plant and equipment in the oil and gas development business in the Gulf of Mexico, as a sharp decline in crude oil prices and revisions to production and drilling plans were expected to reduce future projected cash flows.」

「In the first nine months of the current fiscal year, the company recognized an impairment loss of ¥24,244 million on the estimated unrecoverable amount of oil and gas assets in the Gulf of Mexico due to a review of the drilling plan, a decline in reserves, and other factors.」

「In the first half of the current fiscal year, the company recognized an impairment loss of ¥11,355 million on the estimated unrecoverable amount of oil and gas assets in the Gulf of Mexico due to a review of the drilling plan.」

「In the first quarter of the current fiscal year, the company recognized an impairment loss of ¥11,488 million on the estimated unrecoverable amount of oil and gas assets in the Gulf of Mexico due to a review of the drilling plan.」

「Despite impairment losses on oil and gas development and metal-related assets, profit for the year increased by ¥45.9 billion, or 209.3%, year on year to ¥67.9 billion, due mainly to higher gross profit and equity-method investment gains, as well as the reversal of the deterioration in corporate income taxes resulting from U.S. tax reform in the previous year.」

「Gross profit increased by ¥32.3 billion, or 85.1%, year on year to ¥70.2 billion, due to higher crude oil and gas prices and increased sales volumes in the oil and gas development business, as well as improved profitability in the oil and gas trading business. Quarterly profit increased by ¥44.9 billion, or 546.8%, year on year to ¥53.1 billion, primarily due to the reversal of the deterioration in corporate income taxes resulting from U.S. tax reform in the previous year.」

「Gross profit increased by ¥26.8 billion, or 143.3%, year on year to ¥45.5 billion, due to higher crude oil prices and increased sales volumes in the oil and gas development business, as well as improved profitability in the oil trading business. Quarterly profit increased by ¥13.0 billion, or 61.8%, year on year to ¥33.9 billion.」

「Gross profit increased by ¥14.5 billion, or 210.9%, year on year to ¥21.3 billion, due to higher commodity prices and increased sales volumes in the oil and gas development and Australian coal businesses, as well as improved profitability in the oil trading business.」

「Despite deterioration in corporate income taxes due to U.S. tax reform, profit for the year improved by ¥28.2 billion year on year to ¥21.9 billion, primarily due to the reversal of the impairment loss recognized in the oil and gas development business in the previous consolidated fiscal year and higher equity-method investment gains from the Chile copper and Australian coal businesses.」

「Gross profit increased by ¥25.7 billion, or 210.8%, year on year to ¥38.0 billion, due to improved profitability in the oil trading and LNG businesses and higher coal and oil and gas prices. Although corporate income taxes deteriorated due to U.S. tax reform, quarterly profit improved by ¥36.6 billion year on year to ¥8.2 billion, due to the reversal of the impairment loss recognized in the oil and gas development business in the previous year and improved equity-method investment gains from the Chile copper and Australian coal businesses.」

「Gross profit increased by ¥17.9 billion year on year to ¥18.7 billion, primarily because the Australian coal business recorded higher profit due to higher coal prices and improved profitability in the LNG business. In addition, improved equity-method investment gains from the Chile copper and Australian coal businesses and other factors improved quarterly profit by ¥32.6 billion year on year to ¥21.0 billion.」

「Gross profit improved by ¥7.9 billion year on year to ¥6.9 billion, primarily because the Australian coal business recorded higher profit due to higher coal prices and improved profitability in the LNG business. In addition, higher equity-method investment gains from the Chile copper and Australian coal businesses and other factors improved quarterly profit by ¥12.2 billion year on year to ¥7.2 billion.」

「Among the significant impairment losses recognized during the current consolidated fiscal year was an impairment loss of ¥47,495 million on oil and gas assets in the Gulf of Mexico, included in the Energy & Metals operating segment, due to an expected decline in future projected cash flows resulting from a decline in reserves and other factors.」

「In the first nine months of the current fiscal year, the company recognized an impairment loss of ¥41,519 million on the estimated unrecoverable amount of oil and gas assets in the Gulf of Mexico due to a decline in reserves.」

「Due to deteriorating profitability in the LNG business and falling oil and gas prices in the oil and gas development business, gross profit decreased by ¥14.0 billion, or 94.2%, year on year to ¥0.9 billion in the first half. Despite the reversal of the impairment loss recognized in the oil and gas development business in the same period of the previous year, lower equity-method investment gains from the Chile copper and steel products businesses and deterioration in corporate income taxes caused quarterly profit to deteriorate by ¥9.0 billion year on year to a loss of ¥11.6 billion.」

「Due to deteriorating profitability in the LNG business and falling oil and gas prices in the oil and gas development business, gross profit deteriorated by ¥12.8 billion year on year to ¥1.0 billion, representing a loss, in the first quarter. In addition, lower equity-method investment gains from the Chile copper business and other operations caused quarterly profit to deteriorate by ¥16.1 billion year on year to ¥5.0 billion, representing a loss.」

「Key management indicators for the current consolidated fiscal year deteriorated substantially, primarily because of the recognition of significant impairment losses. Profit for the year attributable to owners of the parent was ¥62.3 billion, compared with the initial forecast of ¥180 billion, among other declines.」