Japan Petroleum Exploration (1662) Q2 2026 earnings summary

Executive summary

• Net sales for the six months ended September 30, 2025, were ¥168,140 million, down 8.4% year-over-year due to lower crude oil and natural gas prices and decreased LNG sales volume.

• Operating profit declined 11.3% year-over-year to ¥25,507 million, while ordinary profit rose 27.6% to ¥32,937 million, mainly from a turnaround in equity method income and foreign exchange gains.

• Profit attributable to owners of parent increased 28.0% year-over-year to ¥27,055 million.

Financial highlights

• Gross profit was ¥43,536 million, down 6.4% year-over-year.

• Exploration expenses fell 65.2% year-over-year to ¥737 million; SG&A expenses rose 10.8% to ¥17,291 million.

• Basic earnings per share for the period was ¥105.72, calculated post 5-for-1 stock split.

• Total assets as of September 30, 2025, were ¥684,737 million; net assets were ¥570,630 million, with an equity ratio of 79.0%.

Outlook and guidance

• Full-year forecast for FY ending March 31, 2026: net sales ¥333,000 million (down 14.4% YoY), operating profit ¥35,000 million (down 43.6%), ordinary profit ¥44,000 million (down 31.5%), profit attributable to owners of parent ¥36,000 million (down 55.6%), and EPS ¥140.66.

• Dividend forecast for FY ending March 31, 2026: ¥40.00 per share.