Japan Petroleum Exploration (1662) Q3 2024 earnings summary

Executive summary

• 9M FY3/24 net sales rose 2% YoY to ¥229.9bn; operating profit increased 3% to ¥39.9bn, while ordinary profit fell 17% to ¥48.2bn and net income fell 16% to ¥36.5bn.

• Lower equity-method earnings and foreign-exchange gains weighed on ordinary profit; higher UK tax expense contributed to lower net income.

Financial highlights

• Gross profit declined 2% YoY to ¥62.7bn; net sales increased ¥4.8bn to ¥229.9bn.

• Net income attributable to owners fell ¥6.8bn YoY to ¥36.5bn; operating profit increased ¥1.1bn to ¥39.9bn.

• For FY3/24, revised forecasts are net sales ¥330.7bn, operating profit ¥50.7bn, ordinary profit ¥59.1bn and net income ¥45.0bn.

Outlook and guidance

• FY3/24 forecasts vs Nov. 10 were raised for net sales by ¥5.3bn, operating profit by ¥1.9bn and ordinary profit by ¥2.1bn; net income remains ¥45.0bn.

• Full-year forecast YoY: net sales -2%, gross profit -12%, operating profit -18%, ordinary profit -29% and net income -33%.

• Forecast assumptions: WTI $75.60/bbl, CIF crude $84.74/bbl and ¥141.42/$; FY dividend forecast unchanged at ¥250/share, split into ¥125 interim and ¥125 year-end.