Japan Petroleum Exploration (1662) Q1 2025 earnings summary

Executive summary

• Q1 FY3/25 net sales rose 45.9% YoY to ¥89,465m, while operating profit edged up 0.3% to ¥12,948m; ordinary and parent-attributable profit fell 9.1% and 11.6%, respectively.

• Revenue growth reflected higher overseas crude oil and LNG sales; lower equity-method income and FX gains weighed on ordinary profit.

Financial highlights

• Gross profit rose 8.6% to ¥22,278m; exploration expenses increased 570.2% to ¥1,713m.

• Ordinary profit declined 9.1% to ¥16,560m and profit attributable to owners of parent fell 11.6% to ¥11,493m.

• Basic EPS was ¥219.44, down from ¥239.73 a year earlier.

• Total assets were ¥687,110m at June 30, up ¥26,181m from March 31; net assets were ¥537,415m and the equity ratio was 73.1%.

• Depreciation was ¥9,788m versus ¥5,309m a year earlier; treasury shares increased ¥6,249m to ¥14,343m due to share repurchases.

Outlook and guidance

• FY3/25 forecast: net sales ¥358,400m (+10% YoY), gross profit ¥88,800m (+2%), operating profit ¥53,800m (-3%), ordinary profit ¥57,800m (-16%) and parent-attributable profit ¥44,000m (-18%).

• Versus May, net sales forecast fell ¥21,000m, mainly on lower E&P sales expectations; gross profit rose ¥2,500m and operating profit ¥1,400m.

• Revised assumptions: WTI $75.52/bbl, CIF crude oil $81.30/bbl and ¥146.71/$, versus May assumptions of $80.00, $85.00 and ¥140.00/$.

• Annual dividend forecast remains ¥150/share pre-split, comprising ¥125 interim and ¥25 year-end; payout policy targets a 30% consolidated ratio. Basic EPS forecast is ¥170.62 after reflecting the split.