Japan Petroleum Exploration (1662) Q1 2025 earnings summary

Executive summary

• Net sales rose 45.9% year-over-year to ¥89,465 million for the quarter ended June 30, 2024, driven by higher crude oil sales in North America and the Middle East.

• Operating profit was ¥12,948 million, up 0.3% year-over-year, while ordinary profit declined 9.1% to ¥16,560 million due to a shift from equity method profit to loss and lower FX gains.

• Profit attributable to owners of parent decreased 11.6% year-over-year to ¥11,493 million.

Financial highlights

• Gross profit increased 8.6% year-over-year to ¥22,278 million.

• Exploration expenses surged 570.2% year-over-year to ¥1,713 million.

• Basic earnings per share for the quarter was ¥219.44, down from ¥239.73 a year earlier.

• Total assets as of June 30, 2024, were ¥687,110 million, up ¥26,181 million from March 31, 2024.

• Net assets stood at ¥537,415 million, with an equity ratio of 73.1%.

Outlook and guidance

• Full-year net sales forecast revised to ¥358,400 million, up 10.0% year-over-year.

• Operating profit forecast at ¥53,800 million (down 2.6%), ordinary profit at ¥57,800 million (down 16.0%), and profit attributable to owners of parent at ¥44,000 million (down 18.0%).

• Basic EPS forecast for the year is ¥170.62, reflecting a 5-for-1 stock split effective October 1, 2024.