Japan Petroleum Exploration (1662) Q1 2023 earnings summary

Executive summary

• Q1 FY3/23 operating profit rose to ¥9.8bn from ¥3.4bn, while profit attributable to owners of parent increased to ¥15.6bn from ¥7.1bn.

• Higher crude oil and natural gas sales prices, foreign-exchange gains and equity-method earnings supported results; full-year FY3/23 profit forecasts were revised upward.

Financial highlights

• Q1 net sales were ¥58.617bn, up 17% YoY; gross profit was ¥16.696bn, up 49%, and operating profit was ¥9.810bn, up 189%.

• Ordinary profit rose 115% YoY to ¥22.600bn; profit attributable to owners of parent increased 120% to ¥15.640bn.

• Non-operating income increased, including foreign-exchange gains and higher equity in earnings of affiliates.

Outlook and guidance

• FY3/23 forecast raised vs May: net sales ¥275.755bn (+13%), operating profit ¥39.705bn (+90%), ordinary profit ¥50.988bn (+77%) and parent-attributable profit ¥40.007bn (+56%).

• Revised assumptions: WTI $97.05/bbl, CIF crude oil $95.64/bbl and ¥120.75/$; forecast changes reflect higher oil prices and a weaker yen.

• Revised FY3/23 annual dividend forecast: ¥220/share, split between ¥110 interim and ¥110 year-end.