Japan Petroleum Exploration (1662) investor relations material

Executive summary

• Net sales for 1Q FY3/27 declined 21.4% year-over-year to ¥65,114 million, with operating profit down 62.9% to ¥6,202 million and profit attributable to owners of parent down 79.4% to ¥3,240 million.

• Comprehensive income turned negative at ¥(23,753) million, compared to ¥3,627 million in the prior year period.

• Revised full-year FY3/27 forecasts raised: net sales to ¥314 billion, operating profit to ¥46 billion, and profit attributable to owners of parent to ¥65 billion versus previous guidance.

• Dividend forecast maintained at ¥45.00 per share, with a minimum annual dividend of ¥40.00 per share and a target payout ratio of 30%.

Financial highlights

• 1Q FY3/27 net sales fell by ¥17.7 billion year-over-year, gross profit by ¥5.7 billion, and operating profit by ¥10.5 billion.

• Gross profit decreased 22.6% year-over-year to ¥19,603 million.

• Ordinary profit fell 72.3% year-over-year to ¥5,773 million, impacted by lower equity method income and derivative losses.

• Basic earnings per share dropped to ¥12.66 from ¥61.41 year-over-year.

• Major one-time gains in FY3/27 forecast include ¥31 billion from business transfer and ¥7.5 billion from investment securities sales.

Outlook and guidance

• FY3/27 net sales forecast increased to ¥314 billion, operating profit to ¥46 billion, and profit attributable to owners of parent to ¥65 billion, reflecting higher crude oil prices and increased sales volumes.

• WTI and CIF crude oil price assumptions raised to $74.10/bbl and $77.20/bbl, respectively.

• Sensitivity: every $1/bbl increase in WTI adds ¥570 million to operating profit; every ¥1/USD depreciation adds ¥490 million.

• Dividend forecast for FY ending March 31, 2027, is ¥45.00 per share, unchanged from the prior year.