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

Financial Results

for the Nine Months Ended December 31, 2019

February 10, 2020

Japan Petroleum Exploration Co., Ltd.
Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

Trends in Crude Oil Price and Foreign Exchange Rate
JPY/USD

USD/bbl

JCC Price (USD/bbl）

Exchange Rate (JPY/USD)

1-3Q FY3/20（a)67.62

109.10First 10 days of Jan. 2020 (flash)

69.13

109.464Q FY3/20 (f)65.00

108.00

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

2Financial Highlights : 1-3Q Results and Full Year Forecasts
FY3/19Billion Yen

FY3/20

1-3Q (a)①

Full year(a)②1-3Q (a)③207.4

267.9

Operating profit

1.0

Ordinary profit
Profit attributable toowners of parent

Net sales

Full year(f)ChangeFull year(f)previousforecasts(Nov.8, 2019)

Revised forecasts(Feb.10, 2020)

④

⑤*

247.8

318.3

2.3

11.5

12.2

12.5

11.4

14.7

1-3Q
（③-①）

Full year（⑤-②）

Full year（⑤-④）

325.7+40.3+57.7+7.4

11.7

14.1+10.4+11.7+2.319.8

21.8

27.8+7.5

+15.3

+5.9

16.5

18.8

23.4

+5.1+8.7+4.6

Oil price and exchange rate assumptions
JCC (USD/bbl）

74.54

71.94

67.62

67.07

66.96

-6.92

-4.98

-0.11

Exchange rate
（JPY/USD）

110.25110.35109.10108.44108.83

-1.15

-1.52

+0.39

*JAPEX announced the latest forecasts by “Notice of Financial Forecasts Revision” on February 10, 2020, regarding
the consolidated financial forecasts of the fiscal year ending March 31, 2020.
Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

3Natural Gas Sales for 1-3Q FY3/20 (Year-on-Year)
FY3/19
1-3Q (a)Sales volume : Million M3
Net sales : Million Yen

FY3/20
1-3Q (a)ChangeSales volume

1,248

1,176-71

Net sales

45,66745,870+203

Japan

Sales volume

868

857

-11

(Gas produced in Japan)

Sales volume

450

419

-30

Overseas

Sales volume379

319-59Natural gas

Increase in sales price inJapan

Sales volume by region

Million M3

1,200

Sales volume ofoverseas gas

379

800
400-868
3Q FY3/19 (a)319

Decrease in shale gas sales volume inCanada

Sales volume of gasin Japan857
3Q FY3/20 (a)Sales volume in “Overseas” which are volume of 2 overseas
subsidiaries (Japex (U.S.) Corp. and JAPEX Montney Ltd.,).

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

4Crude Oil Sales for 1-3Q FY3/20 (Year-on-Year)Sales volume : Thousand KL
Net sales : Million Yen

FY3/191-3Q(a)FY3/201-3Q(a)ChangeSales volume

2,502

3,613+1,111

Net sales

106,214

143,723+37,508

Crude oilproduced inJapan*1

Sales volume190

225+34

Net sales

10,35010,992+642

Crude oilproduced inoverseas*2

Sales volume356

944+588

Net sales

15,941

43,189+27,248

Sales volume925

1,290+365

Net sales

26,19835,674+9,475

Crude OilEquity oil sales

Diluted bitumen*3

Sales price and exchange rate
JCCUSD/bbl

74.54

67.62

-6.92

Diluted bitumen*3

USD/bbl

39.63

40.72

+1.09

Exchange rate

JPY/USD

110.25109.10-1.15

Growth in sales volume of overseas
crude oil and diluted bitumen

Growth in crude oil sales volume ofGarraf Oil Field, Iraq
Growth in bitumen production
volume of the Hangingstone Lease,
Canada*1 Sales volume and net sales of “Crude oil produced in Japan” which do not include purchased crude oil.
*2 Sales volume and net sales of “Crude oil produced in overseas” which are volume of 3 overseas subsidiaries (Japex (U.S.) Corp., JAPEXMontney Ltd. and Japex Garraf Ltd.).
*3 Royalty is excluded in the net sales and price of diluted bitumen.
Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

5

1-3Q FY3/20 Results (Year-on-Year)
Million Yen

FY3/19
1-3Q (a)FY3/20
1-3Q (a)ChangeNet sales

207,425

247,819+40,393

Gross profit

25,44535,157+9,712

617

716+99

SG&A expenses

23,78722,907-879

Operating profit

1,040

11,533+10,492

Non-operating income

11,2358,316-2,918

Ordinary income

12,275

19,849+7,574605-163-768

Income taxes

2,000

3,105+1,105

Profit (loss)
attributable to noncontrolling interests-522

24+546

Profit attributable toowners of parent

11,402

16,556+5,153

Exploration expenses

Extraordinary income(loss)

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

6Main factors for change
Increase factor “+” / Decrease factor “( )”Gross profit
Domestic business
Overseas business+¥ 1.6 bn.
+¥ 8.0 bn.

Non-operating income
Equity on earnings(¥2.1 bn.)
Foreign currency translation adjustments ondebt, foreign exchange gains and losses(FY3/19) Loss of ¥1.2 bn. → (FY3/20) Gains of ¥0.8 bn.

+¥2.0 bn.
(FY3/19)Gains of ARO cancellation due toselling interests of the Hangingstone lease(¥3.3bn.)Price Assumptions for FY3/20 Forecasts
2019

2020

Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec. Jan.-Mar.
WTI

USD/bblJCCUSD/bbl

Exchange rate JPY/USDJACOS
Diluted bitumen*1

JML
Natural gas*2
1.
2.

USD/bbl
CAD/mcf

Full year

Nov. 8

54.90

59.90

56.50

56.40

57.00

Feb.10

54.90

59.90

56.50

57.00

57.10

Nov. 8

68.77

69.55

65.00

65.00

67.07

Feb.10

68.77

69.55

64.72

65.00

66.96

Nov. 8111.11 108.26 107.00 107.00 108.44

Feb.10111.11 108.26 107.71 108.00 108.83

Nov. 8

37.98

44.20

39.94

34.42

39.29

Feb.10

37.98

44.20

39.83

36.66

39.86

Nov. 8

2.28

1.33

1.57

1.75

1.74

Feb.102.28

1.331.41

2.00

1.76

“JACOS Diluted bitumen” stated herein is the diluted bitumen sales price of Japan Canada Oil Sands Ltd. (Excl. Royalty).
“JML Natural Gas” stated herein is the gas sales price of JAPEX Montney Ltd. (Excl. Royalty).

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

7

Natural Gas Sales Forecasts for FY3/20 (vs Nov. 8 Forecasts)
Sales volume : Million M3
Net sales : Million Yen

FY3/20FY3/20Previous (f)Nov. 8, 2019

Revised (f)Feb. 10, 2020

ChangeSales volume1,731

1,734+3

Net sales

69,17368,761-412

Japan

Sales volume

1,299

1,302+4(Gas produced in Japan)

Sales volume569

588+19Overseas

Sales volume432432-1

Natural gas

Decrease in sales price inJapan

Sales volume by region

Million M3

1,600

432432

1,200800400-

Sales volume ofoverseas gas
Sales volume ofgas in Japan

1,299

1,302

Nov. 8 (f)Feb.10 (f)Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

Sales volume in “Overseas” which are volume of 2 overseas
subsidiaries (Japex (U.S.) Corp. and JAPEX Montney Ltd.,).

8Crude Oil Sales Forecasts for FY3/20 (vs Nov. 8 Forecasts)
Sales volume : Thousand KL
Net sales : Million Yen

FY3/20Previous (f)Nov. 8, 2019

FY3/20
Revised (f)Feb. 10, 2020

ChangeSales volume

4,536

4,558+23

Net sales

173,367

179,593+6,226

Crude oilproduced inJapan*1

Sales volume291

299+9Net sales

13,904

14,400+496

Crude oilproduced inoverseas*2

Sales volume

1,185

1,118-67

Net sales

51,45350,500-953

Dilutedbitumen*3

Sales volume

1,672

1,639-33

Net sales

44,19145,031+840

Crude Oil
Equity oil sales

Growth in sales volume ofpurchased crude oil

Decrease in crude oil sales
volume of Garraf Oil Field,
Iraq
Increase in bitumen sales
price of the Hangingstone
Lease, Canada

Oil price and exchange rate assumptions
JCC

USD/bbl

67.07

66.96

-0.11

Diluted bitumen*3

USD/bbl

39.29

39.86

+0.57

Exchange rate

JPY/USD

108.44108.83+0.39*1 Sales volume and net sales of “Crude oil produced in Japan” which do not include purchased crude oil.
*2 Sales volume and net sales of “Crude oil produced in overseas” which are volume of 3 overseas subsidiaries (Japex (U.S.) Corp., JAPEX Montney Ltd.
and Japex Garraf Ltd.).
*3 Royalty is excluded in the net sales and price of diluted bitumen.
Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

9FY3/20 Forecast (vs Nov. 8 Forecasts)
Million Yen

FY3/20Previous (f)Nov. 8, 2019

FY3/20
Revised (f)Feb. 10, 2020

ChangeNet sales

318,351

325,763+7,413Gross profit

43,912

46,251+2,339

969

937

-32

SG&A expenses

31,20831,205-3

Operating profit

11,735

14,109+2,373

Non-operating income

10,163

13,750+3,587

Ordinary profit

21,89827,859+5,961

Extraordinary income(losses)

-111

-207

-97

Income taxes

3,415

3,928+512

Profit (loss) attributable
to non-controllinginterests-447

230+678

18,82023,493+4,674

Exploration expenses

Profit attributable toowners of parent

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

10Main factors for change
Increase factor “+” / Decrease factor “( )”Gross profit

Domestic business
Overseas business

Non-operating income+¥1.3 bn.
+¥1.0 bn.

Equity on earnings+¥ 1.2 bn.
Foreign currency translation adjustments ondebt, foreign currency exchange gains andlosses+¥ 2.3 bn.

Natural Gas Sales Forecasts for FY3/20 (Year-on-Year)Sales volume : Million M3
Net sales : Million Yen

FY3/20FY3/19(a)Revised (f)Feb. 10, 2020

ChangeSales volume

1,731

1,734+3

Net sales

67,82068,761+940

Japan

Sales volume

1,243

1,302+59(Gas produced in Japan)

Sales volume630

588-43

Overseas

Sales volume487

432-56Natural gas

Growth in sales
volume in Japan

Sales volume by region

Million M3

1,600

487

432

1,200800
400-1,243

Sales volume ofoverseas gas

Decrease in shale gas sales volume inCanada

Sales volume ofgas in Japan

Temporary demand for commissioningof the Fukushima Natural Gas PowerPlant

1,302
Sales volume in “Overseas” which are volume of 2 overseas
subsidiaries (Japex (U.S.) Corp. and JAPEX Montney Ltd.,).

FY3/19(a)FY3/20(f)Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

11

Crude Oil Sales Forecasts for FY3/20 (Year-on-Year)Sales volume : Thousand KL
Net sales : Million Yen

FY3/19(a)FY3/20
Revised (f)Feb. 10, 2020

ChangeSales volume3,064

4,558+1,494

Net sales

124,696

179,593+54,897

Crude oilproduced inJapan*1

Sales volume261

299+38Net sales

13,746

14,400+653

Crude oilproduced inoverseas*2

Sales volume366

1,118+751

Net sales

16,59950,500+33,901

Sales volume

1,176

1,639+463

Net sales

30,11645,031+14,915

Crude Oil

Growth in sales volume

Equity oil sales

Diluted bitumen*3

Growth in crude oil sales
volume of Garraf Oil Field,
Iraq
Growth in bitumen production
volume of the Hangingstone
Lease, Canada

Oil price and exchange rate assumptionsJCCUSD/bbl

71.94

66.96

-4.98

Diluted bitumen*3

USD/bbl

36.67

39.86

+3.19

Exchange rate

JPY/USD

110.35108.83-1.52*1 Sales volume and net sales of “Crude oil produced in Japan” which do not include purchased crude oil.
*2 Sales volume and net sales of “Crude oil produced in overseas” which are volume of 3 overseas subsidiaries (Japex (U.S.) Corp., JAPEX Montney Ltd.
and Japex Garraf Ltd.).
*3 Royalty is excluded in the net sales and price of diluted bitumen.
Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

12FY3/20 Forecast (Year-on-Year)
Million Yen

FY3/19(a)Main factors for change
Increase factor “+” / Decrease factor “( )”FY3/20
Revised (f)Feb. 10, 2020

ChangeNet sales

267,980

325,763+57,783

Gross profit

34,846

46,251+11,404

788

937+148

SG&A expenses

31,74331,205-539

Operating profit

2,313

14,109+11,795

Non-operating income

10,20913,750+3,540Ordinary profit

12,52327,859+15,335

550-207-758-1,254

3,928+5,182-441

230+672

14,77023,493+8,723

Exploration expenses

Extraordinary income(losses)
Income taxes
Plofit (loss) attributable
to non-controllinginterests
Profit attributable toowners of parent

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

13

Gross profit

Domestic business
Overseas business(¥0.2 bn.)+¥11.6 bn.

Non-operating income•••

Equity on earnings(¥ 3.2 bn.)
Dividend income+¥3.1 bn.
Foreign currency translation adjustments
on debt, foreign exchange gains andlosses(FY3/19) Loss of ¥5.2bn. →(FY3/20) Gains of ¥2.4bn.

•••+¥7.7 bn.
(FY3/19)Gains of ARO cancellation due toselling interests of the Hangingstone lease(¥3.2bn.)
Decrease in interest income (¥0.5bn.)
Increase in interest expenses (¥0.5bn.)

Income taxes(FY3/19) Increase in tax expense due toabsence of one-time factor incurred inprecious period(¥2.6bn.)(FY3/19) Application of foreign tax credit on
Garraf Project(¥2.6bn.)
Tax expense of JACOS(¥1.0bn.)
Tax effect of U.K. North Sea Offshore Project+¥1.5bn.

Cautionary Statement
This document contains future prospects such as plans, forecasts, strategies, and others
which are not historical fact and these are made by the management’s judgement basedon the obtainable information at the time of the disclosure. Actual results may significantly
differ from those future prospects due to various factors.
This document is not intended to invite investment.
Copyright:All information contained herein is protected by copyright, and may not be
copied or reproduced without prior consent of JAPEX.
Note: Abbreviations used herein are as follows:(a) = Actual results(f) = Forecasts
FY = Fiscal year (FY3/20, for instance, means 12 months ending March 31, 2020)
Any inquiries about the information contained herein or other Investor Relations questions
are requested to be directed to:Investor Relations Group, Media & Investor Relations Dept.
Japan Petroleum Exploration Co., Ltd. (JAPEX)Tokyo, JAPANTEL: +81-3-6268-7111
Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

14