Japan Petroleum Exploration (1662) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales fell 9.2% to ¥152.7bn, while gross profit rose 21.7% to ¥53.0bn and operating profit rose 17.8% to ¥30.0bn.

• Profit attributable to owners of parent rose 13.9% to ¥30.8bn; FY3/27 forecasts were raised to ¥52.0bn operating profit and ¥70.0bn net income.

Financial highlights

• H1 ordinary profit increased 2.2% to ¥33.7bn; profit before income taxes was ¥44.0bn and basic EPS was ¥120.39.

• H1 net income benefited from a ¥10.3bn gain on investment securities.

• Gross profit rose to ¥53.0bn from ¥43.5bn; exploration expenses increased to ¥4.3bn from ¥0.7bn and SG&A rose to ¥18.6bn from ¥17.3bn.

• Comprehensive income declined to ¥13.9bn from ¥21.2bn.

Outlook and guidance

• Revised FY3/27 forecast: net sales ¥336.0bn, gross profit ¥103.0bn, operating profit ¥52.0bn, ordinary profit ¥53.0bn and net income ¥70.0bn.

• Versus the Aug. 6 outlook, forecasts rose 7% for sales, 13% for operating profit, 15% for ordinary profit and 8% for net income; forecast basic EPS is ¥273.41.

• Annual dividend forecast remains ¥45/share, split equally between interim and year-end payments of ¥22.50.

• Garraf production is assumed at zero in H2; three alternative LNG cargoes are planned for FY3/27, with two in H1 and one in H2.