Note: The following report is an English translation of the Japanese-language original.

Consolidated financial results
for the nine months ended December 31 , 2011
＜Supplementary material＞
February 10 , 2012

Japan Petroleum Exploration Co., Ltd.
copyright©2012 JAPAN PETROLEUM EXPLORATION Co.,LTD. All rights reserved.

Cautionary statement

Any information contained herein with respect to JAPEX’s plans, estimates, strategies
and other statements that are not historical facts are forward-looking statements about
the future performance of JAPEX. Readers should be aware that actual results andevents may differ substantially from these projections due to various factors.
The provision of this document should not be construed as a solicitation for investment.
Copyright :All information contained herein is protected by copyright, and may not be
copied or reproduced without the prior consent of JAPEX.

Note: The following abbreviations are used within this document:(a) = actual result(e) = estimate
Any inquiries about the information contained herein or other Investor Relations questions
should be directed to:Investor Relations Group,Media & Investor Relations Department,
Japan Petroleum Exploration Co., Ltd.
TEL: +81-3-6268-7111

2

$140

¥120

$130

¥115

$120

¥110

$110

$ denominated price $/bbl (left axis)

¥105

$100

¥100

$90

¥95

$80

¥90

$70

¥85

Exchange rate \/$(right axis)

$60

¥80

$50

¥75

$40

¥70
2009-01
2009-022009-032009-04
2009-05
2009-06
2009-072009-08
2009-09
2009-10
2009-11
2009-122010-01
2010-022010-032010-04
2010-05
2010-06
2010-072010-08
2010-092010-10
2010-112010-122011-01
2011-02
2011-03
2011-04
2011-05
2011-06
2011-072011-08
2011-09
2011-10
2011-11
2011-12
2012-01[Price] $denominated $/bbl

Trends in Crude oil prices and Foreign exchange ratesJapan Crude Cocktail (JCC) Price in the first 20 days January 2012
on a prompt report basis : USD 113.17/bbl

Yen

77.51/USD
3

Actual results for 1Q-3Q FY2012 (Summary)[ Billion ￥]FY111Q-3Q(a)

FY121Q-3Q(a)Billion ￥change

170%
Change

144.5

165.6

+21.1+15%

Operating income

6.1

5.7(0.4)(7%)

Ordinary income

9.0

8.2(0.7)(9%)

Net income

5.5

6.2

+0.7+13%

Net sales

JCC price
USD/bbl78.85

111.59160
150

12.0140

11.0

Bitumen price
CAD/bbl

49.92

47.95

(1.97)

Exchange rateYen/CAD

81.18

73.97(7.21)

79.57(8.39)

120

10.0
9.0

9.011080

Main points of difference with FY11 : Operating income -¥ 0.4billion (-7%)→Gross profit -¥1.2billion Exploration expenses / SG&A +¥0.8billion
 Ordinary income -¥ 0.7billion (-9%)→Equity in earnings (losses) of affiliates

144.5

13090

87.96

-¥0.4billion

6.1

5.5

4

7.0

6.2

5.7

6.0
5.0

70

4.060

3.050

2.040

1.030

FY111Q-3Q

FY121Q-3Q

Operating income (right axis)
Net income (right axis)→Extraordinary income (losses) +¥2.4billion

8.0

8.2

Ordinary income (right axis)

 Net income +¥0.7billion (+13%)

14.0
13.0

165.6

Net Sales (left axis)

100+32.74

Exchange rate
Yen/USD

Billion ￥Actual sales of Natural gas in 1Q-3Q FY2012
FY11
1Q-3Q
(a)

FY12
1Q-3Q
(a)

changeSales volume

1,092

1,214+122

Net sales

42,14452,082+9,937

Sales volume

824

830+5

Sales volume : Million M3
Net sales : Million ￥Natural gas :Of which,
Domestically produced gas :-Increase in demand for industrial
users and utility gas customers.
-Rise in sales prices.

Sales volume of “Domestically produced gas” stated herein does not include purchased gas.

Sales volume （total）

Million M3
1,300

Of which, domestically produced gas
1,214

1,100
1,092

Sales volume increased by 122 million M3 (+11%) vs FY11.

900
700

-Increase in demand for industrial users and utility gas customers after the Great East
Japan earthquake caused in March 2011.
824830Net sales increased by ¥ 9.9 billion (+24%) vs FY11.
<Cause of increase >-Increase in demand. (+122 million M3 (+11%))-Rise in sales prices.

500300100
FY11 (a)FY12 (a)5

Actual sales of Crude oil in 1Q-3Q FY2012
FY111Q-3Q(a)FY121Q-3Q(a)Sales volume

1,491

1,402(89)

Net sales

59,76470,689+10,925

Domestically produced
crude oil:

Sales volume

379

381+1

Net sales

17,01521,655+4,640Overseas subsidiary
crude oil:

Sales volume42(2)Net sales154

99(54)

Sales volume

302

281

(21)

Net sales

7,716

6,274

(1,442)

Sales volume : Thousand KLNet sales : Million ￥Crude oil:change-Rise in crude oil prices.

Breakdown of equity oil

Bitumen:-Rise in crude oil prices.
- Decrease in net sales reflecting
strengthening of the yen.
- Rise in Royalty rate of bitumen.
- Decrease in net sales reflecting
strengthening of the yen.

Oil price and Exchange rate assumptions
JCC price

USD/bbl78.85

111.59+32.74

Exchange rate

Yen/USD

87.96

79.57

(8.39)

Bitumen price

CAD/bbl

49.92

47.95

(1.97)

Exchange rate

Yen/CAD

81.18

73.97

(7.21)

Sales volume and net sales of “Domestically produced crude oil” stated herein do not include purchased crude oil.
Royalty is excluded in the net sales and price of Bitumen.
Sales volume and net sales of “Overseas subsidiary crude oil” stated herein are amonts of Japex (U.S.) Corp., an overseas consolidatedsubsidiary.

6Actual results for 1Q-3Q FY2012 (vs FY2011)[ Million ￥]Net sales

FY11
1Q-3Q
(a)

FY12
1Q-3Q
(a)

change144,508

165,685+21,177≪Causes of increase(+) or decrease(-) ≫Gross profit
Domestic crude oil and natural gas +¥4.2 billion
LNG substitution expence

Gross profit

36,35935,098(1,261)

Exploration expenses

8,0485,924(2,123)

SG&A expenses

22,16623,433+1,266

Operating income

6,144

5,740(404)Non-operating income(expenses)

2,915

2,524(390)

Ordinary income

9,059

8,265(794)(2,536)(65)+2,471

Income taxes

417

1,492

(1,074)

Minority interests in income

552

442(110)

5,552

6,264+712

Extraordinary income(losses)

Net income

7- ¥2.1 billion

Transportation fee of natural gas- ¥2.4 billion
Overseas consolidated subsidiaries - ¥1.2 billion

Exploration expenses
Domestic exploration
Overseas exploration+¥1.9 billion+¥0.1 billion

Non-operating income (expenses)
Equity in earnings (losses) of affiliates - ¥0.4 billion

Extraordinary income (losses)
Loss on adjustment for changes of accounting
standard for asset retirement obligations+¥2.3 billion

Revised estimates for FY2012 (Summary)
Initialestimate(May ‘11)

Previousestimate(Nov. ‘11)

Revisedestimate(Feb. ‘12)

223.4

229.0

Operating income

11.7

Ordinary income
Net income[ Billion ￥]Net Sales

JCC price
USD/bblchangechange%

226.2(2.8)

(1%)

8.3

12.2

+3.8+46%

15.6

12.9

17.9+4.9+38%21011.5

10.1

13.8

+3.6

+36%

200

90.00

105.66111.13+5.48

Exchange rate
Yen/USD

85.00

80.52

79.69

(0.83)

Bitumen price
CAD/bbl

47.82

46.25

49.71

+3.46

Exchange rate
Yen/CAD

85.00

80.00

76.22(3.78)

1Q (a)

2Q (a)

3Q (a)

4Q (e)

110.80112.38110.25110.00JCC price
USD/bbl
Bitumen price
CAD/bbl

40.91

51.14

51.70

Billion ￥20230
220

226.2

229.0

223.4

17.9

16
13.8
12.9
11.7

12.2

11.5180← Increase of income taxes

8128

8.3

160

6150

4140

20130

 Operating income +¥3.8 billion (+46%) ← Rise in crude oil prices
Decrease in exploration expenses
 Ordinary income +¥4.9 billion (+38%) ← Increase in dividends income

141010.1

170

54.59

18

15.6

190

Main points of revised estimate : causes of increase(+) or decrease(-)

 Net income +¥3.6 billion (+36%)

Billion ￥Net Sales (left axis)

Initialestimate(May '11)

Previousestimate(Nov. ‘11)

Operating income (right axis)
Ordinary income (right axis)
Net income (right axis)

Revisedestimate(Feb. ‘12)

Revised estimated Natural gas sales in FY2012 ( vs previous estimate)
Initialestimate(May ‘11)

Sales volume : Million M3
Net sales : Million ￥Natural gas :Of which,
Domestically produced gas :Previousestimate(Nov. ‘11)

Revisedestimate(Feb. ‘12)changeSales volume

1,714

1,690

1,703+14

Net sales

73,58573,26673,254(12)Sales volume

1,210

1,157

1,171+14

Sales volume of “Domestically produced gas” stated herein does not include purchased gas.
Million M3

1,800
1,600

1,714

1,690

1,703

1,400

Sales volume （total）
Of which, domestically produced gas

1,200
1,000

1,210

1,1571,171800

Sales volume increased by +14 million M3 (+1%) vs previous estimate.

600
400
200
Initialestimate(May ‘11)

Previousestimate(Nov. ‘11)

Revisedestimate(Feb. ‘12)

9

Revised estimated Crude oil sales in FY2012 ( vs previous estimate)
Initialestimate(May ‘11)

Sales volume : Thousand KL
Net sales : Million ￥Previousestimate(Nov. ‘11)

Revisedestimate(Feb. ‘12)changeSales volume

1,949

1,897

1,788

(109)

Net sales

86,093

93,25389,606(3,647)

Domestically produced
crude oil :Sales volume554

523532+9Net sales

26,97828,573

30,074+1,501

Overseas subsidiary
crude oil :Sales volume233(0)Net sales

102142131(11)

Sales volume404

384382(1)Net sales

10,324

8,931

9,119+188

Crude oil :Breakdown of equity oil

Bitumen :Oil price and Exchange rate assumptions
JCC price

USD/bbl90.00

105.66111.13+5.48

Exchange rate

Yen/USD

85.00

80.52

79.69

(0.83)

Bitumen price

CAD/bbl

47.82

46.25

49.71

+3.46

Exchange rate

Yen/CAD

85.00

80.00

76.22(3.78)

Sales volume and net sales of “Domestically produced crude oil” stated herein do not include purchased crude oil.
Royalty is excluded in the net sales and price of Bitumen.
Sales volume and net sales of “Overseas subsidiary crude oil” stated herein are amonts of Japex (U.S.) Corp., an overseas consolidated
subsidiary.

10Revised estimates for FY2012 ( vs previous estimate)[ Million ￥]Net sales

Previousestimate(Nov. ‘11)

Revisedestimate(Feb. ‘12)change229,031226,227(2,805)Gross profit
Domestic crude oil and natural gas + ¥2.0 billion
Overseas consolidated subsidiaries + ¥0.5 billion≪Causes of increase(+) or decrease(-) ≫Gross profit

50,59353,348+2,755

Exploration expenses

8,864

8,058(806)

SG&A expenses

33,36533,076(288)

Operating income

8,365

12,214+3,849

Non-operating income(expenses)

4,609

5,718+1,110

Ordinary income

12,974

17,932+4,959(4)

(195)

(191)

2,328

3,312+984

468

620

+153

10,17513,805+3,630

Extraordinary income(losses)

Income taxes
Minority interests in income

Net income

11

Exploration expenses
Overseas exploration + ¥0.7 billion

Non-operating income (expenses)
Dividends income+ ¥0.7 billion

Revised estimated Natural gas sales in FY2012 (vs FY2011)
Sales volume : Million M3
Net sales : Million ￥Natural gas:
Of which,
Domestically produced gas:

FY11

FY12

Revised estimate (Feb. ‘12)

Full (a)1Q-3Q(a)4Q(e)

Full (e)change(vs FY11)

Sales volume

1,553

1,214

489

1,703

+150

Net sales

61,09052,082

21,171

73,254+12,164

Sales volume

1,185

830

340

1,171

(14)

Sales volume of “Domestically produced gas” stated herein does not include purchased gas.
Million M3

Sales volume （total）

1,800
1,600
1,4001,703

Sales volume increased by 150 million M3 (+9%) vs FY11.

1,553-Increase in demand for utility gas customers after the Great East Japan earthquake
caused in March 2011.

1,200
1,000

Of which, domestically produced gas

1,185

1,171

-Recovery in demand for industrial users.

800
600

Net sales increased by ¥ 12.1 billion (+19%) vs FY11.

400<Cause of increase >-Increase in demand. (+ 150 million M3 (+9%))-Rise in sales prices.

200
FY11 (a)FY12 (e)(e)

12Revised estimated Crude oil sales in FY2012 (vs FY2011)
Sales volume : Thousand KL
Net sales : Million ￥FY11

FY12 Revised estimate (Feb. ‘12)

Full (a)1Q-3Q (a)4Q (e)

Full (e)change(vs FY11)

Sales volume

1,899

1,402

386

1,788

(111)

Net sales

77,62970,68918,91789,606+11,977

Domestically produced
crude oil:

Sales volume

547

381

151

532

(15)

Net sales

25,77721,6558,419

30,074+4,297

Overseas subsidiary
crude oil:

Sales volume

52

13(2)

Net sales

187

99

32

131(57)

Sales volume

409

281

101

382

(27)

Net sales

10,141

6,274

2,845

9,119(1,022)

Crude oil:

Breakdown of equity oil

Bitumen:Oil price and Exchange rate assumptions
JCC price

USD/bbl82.69

111.59110.00111.13+28.44

Exchange rate

Yen/USD

86.24

79.57

80.00

79.69

(6.55)

Bitumen price

CAD/bbl

48.32

47.95

54.59

49.71

+1.39

Exchange rate

Yen/CAD

81.47

73.97

76.22

76.22

(5.25)

Sales volume and net sales of “Domestically produced crude oil” stated herein do not include purchased crude oil.
Royalty is excluded in the net sales and price of Bitumen.
Sales volume and net sales of “Overseas subsidiary crude oil” stated herein are amonts of Japex (U.S.) Corp., an overseas consolidated
subsidiary.

13Revised estimates for FY2012 (vs FY2011)≪Causes of increase(+) or decrease(-) ≫FY11(a)FY12(e)changeNet sales

199,651

226,227+26,575

Gross profit

54,732

53,348(1,384)

Exploration expenses

9,798

8,058(1,741)

SG&A expenses

31,08433,076+1,992

Operating income

13,84912,214(1,636)

Non-operating income(expenses)

3,272

5,718+2,446

Non-operating income (expenses)
Dividends income+ ¥1.9 billion

Ordinary income

17,122

17,932+810

Equity in earnings (losses) of affiliates- ¥1.1 billion

Extraordinary income(losses)(4,166)(195)+3,972Extraordinary income (losses)

2,161

3,312+1,151

Loss on adjustment for changes of accounting standard
for asset retirement obligations+ ¥2.3 billion

783

620

(163)

10,01013,805+3,795[ Million ￥]Income taxes
Minority interests in income

Net income

14

Gross profit
Domestic crude oil and natural gas + ¥3.6 billion
LNG substitution expence- ¥2.3 billion

Transportation fee of natural gas - ¥2.3 billion
Overseas consolidated subsidiaries - ¥0.8 billion

Exploration expenses
Domestic exploration + ¥1.6 billion

Extraordinary expenses related with Great East Japan
Earthquake+ ¥1.6 billion