Consolidated Financial Results for the Interim Period Ended September 30, 2007
November 15, 2007
Note: The following report is a summary of the Japanese-language original.
Company Name: Japan Petroleum Exploration Co., Ltd.
Stock Listing: Tokyo Stock Exchange
Company Code: 1662
(URL: http://www.japex.co.jp/)
President: Yuji Tanahashi
Inquiries: Shigeyoshi Hasegawa, Manager, Media Relations, Media and Investor Relations Department TEL: (03) 6268-7110
Scheduled date for filing Semi-annual Report: December 20, 2007
Scheduled date for commencement of dividend payment: December 3, 2007
(Amounts less than one million yen have been omitted)

1. Consolidated Results for the Fiscal 2008 Interim Period (April 1, 2007 – September 30, 2007)(1) Consolidated Operating Results(Percentages indicate changes over the interim period in the previous fiscal year.)
Net Sales

Operating Income

Ordinary Income

Net Income

FY2008 Interim

Million Yen
91,360%36.1

Million Yen
9,031%(27.9)

Million Yen
13,825%(12.2)

Million Yen
9,695

%
(9.0)

FY2007 Interim

67,13813.4

12,52848.1

15,75026.4

10,65418.6

FY2007 Full Year

170,018

FY2008 Interim

Net Income per
Share-Basic
Yen
169.64Net Income per
Share-Diluted
Yen–

FY2007 Interim

186.42–

29,71934,70520,982

FY2007 Full Year367.12–
Note: Equity in net income (loss) of non-consolidated subsidiaries and affiliates:
FY2008 Interim ¥ 935 million
FY2007 Interim ¥219 million
FY2007 Full Year ¥ 690 million(2) Consolidated Financial Position
Total Assets

Net Assets

September 30, 2007

Million Yen
621,109

September 30, 2006

523,442

March 31, 2007
578,059
Note: Equity: FY2008 Interim ¥ 445,576 million

Net Assets
per Share

Equity Ratio

Million Yen
454,056

%
71.7

Yen
7,796.15

392,833

73.7

418,929
FY2007 Interim ¥ 385,559 million

71.0
FY2007 Full Year6,746.02
7,185.80¥ 410,694 million(3) Consolidated Cash Flows
Cash and Cash
Equivalents
at Period-End

Cash Flows fromOperating Activities

Cash Flows from
Investing Activities

Cash Flows from
Financing Activities

FY2008 Interim

Million Yen
16,936

Million Yen(34,790)

Million Yen(2,684)

Million Yen
40,079FY2007 Interim

13,203(6,423)(817)

48,996

FY2007 Full Year34,256(18,140)

917

60,1992. Cash Dividends
Cash Dividends per Share
InterimRecord-Date

Year-End

Full Year

Yen

Yen

Yen

FY2007

20.00

20.00

40.00

FY200820.00

FY2008 (Forecast)

–
–

40.00

20.00

3. Consolidated Forecasts for Fiscal Year 2008 (April 1, 2007 – March 31, 2008)(Percentages indicate changes over the same period in the previous fiscal year.)
Net Sales

Operating Income

Ordinary Income

Net Income

Net Income per Share

FY2008Million Yen%

Million Yen%

Million Yen%

Million Yen%

Yen

Full Year

188,524

10.9

16,281(45.2)

23,798(31.4)

18,181(13.3)

318.111

4. Others(1) Changes in significant subsidiaries during the period (changes in specified subsidiary affecting the scope of
consolidation): No(2) Change in accounting policy, procedure, and method of presentation for preparing consolidated interim financial
statements (those to be described in the section of the Change of Significant Accounting Policies on the Preparationof Interim Consolidated Financial Statements)
i. Change due to amendment of accounting standard:ii. Change due to other reasons:YesNo(3) Outstanding shares (common shares)
i. Shares outstanding at the period-end (including treasury stock)
FY2008 Interim 57,154,776 shares FY2007 Interim 57,154,776 shares
ii. Treasury stock at the period-end
FY2008 Interim
1,352 shares FY2007 Interim
1,090 shares

FY2007 Full Year 57,154,776 shares
FY2007 Full Year

1,224 shares

Reference: Summary of Non-Consolidated Results
1. Financial Highlights (April 1, 2007 - September 30, 2007)(1) Non-Consolidated Operating Results(Percentages indicate changes over the interim period in the previous fiscal year.)
Net Sales

Operating Income

Ordinary Income

Net Income

Million Yen%

Million Yen%

Million Yen%

Million Yen%

74,478

59.2

8,832

19.1

9,953

(13.9)

7,282(22.3)

FY2007 Interim

46,790

9.6

7,418

16.1

11,565

28.6

9,369

30.5

FY2007 Full Year

122,129

FY2008 Interim

18,402

23,84815,645Net Assets

Equity Ratio

Net Assets
per Share

Net Income
per Share-Basic
FY2008 Interim

Yen
127.43

FY2007 Interim

163.94

FY2007 Full Year

273.75(2) Non-Consolidated Financial Position
Total Assets
Million Yen

Million Yen%

Yen

September 30, 2007

573,290

416,59472.7

7,289.05

September 30, 2006

488,529

363,858

74.5

6,366.31

384,989
FY2007 Interim ¥ 363,858 million

72.6
FY2007 Full Year

March 31, 2007
530,610
Note: Equity: FY2008 Interim ¥ 416,594 million

6,736.05¥ 384,989 million

2. Non-Consolidated Forecasts for Fiscal Year 2008 (April, 1, 2007 - March, 31, 2008)(Percentages indicate changes over the same period in the previous fiscal year.)
Net Sales
FY2008Full Year

Million Yen
155,018

Operating Income%
26.9

Million Yen
18,404%0.0

Ordinary Income
Million Yen
19,943%(16.4)Net Income
Million Yen
16,309Net Income per Share
%
4.2

Yen
285.35* Disclaimer regarding appropriate use of forecasts and related points of notes
The forecast statements shown in this document are based on information that was available at the time of preparation. Actual performance
may differ materially from these forecasts due to various factors.

2

I. Business Results(1) Analysis of Business Performance
In the first half of the fiscal year ended September 30, 2007, the Japanese economy continued its moderate recovery
thanks to a continuation of improved corporate earnings and capital investment growth as well as a turnaround in
consumer spending.
The price of crude oil (including cost, insurance and freight) rose from below the $60 per barrel level in the
beginning of the fiscal year to more than $70 per barrel in the summer as global demand for crude oil increased. The
overall price level of crude oil during the first half of the fiscal year was similar to the same period of the previous
fiscal year.
In addition, the crude oil price for the Group rose compared with the same period of the previous fiscal year because
the yen continued a moderate devaluation trend against the dollar, and was therefore weaker than the same period of
the previous year.
Meanwhile, due to acceleration in the pace of deregulation, domestic natural gas prices still remained weak amid
escalating competition among energy sectors.
Under these conditions, the JAPEX Group worked to maintain production operations with the aim of ensuring stablesupplies of affordable and safe energy over the long term. In addition, the Group focused its collective efforts on
efficient E&P both in Japan and overseas.
Net sales in the first half of the fiscal year were strong at ¥91,360 million, an increase of ¥24,221 million (+36.1%)
year on year.
Gross profit decreased year on year by ¥1,115 million (-3.8%) to ¥28,379 million reflecting increased cost of sales
caused by the overhaul at an FSO (Floating Storage and Offloading) incurred by consolidated subsidiary, Japex New
Nanhai Ltd., and the dissolution of Jawa Oil Co., Ltd.
Operating income decreased by ¥3,496 million (-27.9%) year on year to ¥9,031 million. This was a result of a¥2,236 million (+76.1%) increase in exploration expenses by the expansion of exploration activities in Libya andCanada and a ¥144 million (+1.0%) increase in selling, general and administrative expenses by the commencementof depreciation of the Shiroishi-Koriyama pipeline whose construction was completed in March 2007.
Ordinary income was ¥13,825 million, a decrease of ¥1,925 million (-12.2%) year on year, which was mainly due toimproved investment returns based on the equity method, and net income was ¥9,695 million, a decrease of ¥959
million (-9.0%) year on year.
The performance of each of the sectors of our business was as follows:(a) E&P Division
The E&P Division sells crude oil, natural gas, liquefied natural gas (LNG) and bitumen. This division recorded net
sales of ¥83,693 million, an increase of ¥24,033 million (+40.3%) from the same period of the previous fiscal year,
which was due to increased net sales arising from the higher sales volumes of trading oil such as Sakhalin crude oil(SOKOL crude) and natural gas, and the higher price of crude oil and bitumen.
(b) Contract Services Division
The Contract Services Division is primarily involved in drilling and geophysical surveys, and recorded net sales of¥915 million, a decrease of ¥98 million (-9.7%) from the same period of the previous fiscal year, mainly due todecreases in drilling contracts.
(c) Other Businesses Division
Our Other Businesses Division is primarily involved in the sale of petroleum products, including liquefied
petroleum gas (LPG) and fuel oil, as well as transportation of natural gas and petroleum products on consignment.
Net sales in the first half of the fiscal year were ¥6,751 million, an increase of ¥286 million (+4.4%) from the same
period of the previous fiscal year.
The full-year forecast released on August 10, 2007 has been revised. Please refer to the separate “Notice ofFinancial Forecast Revision for Fiscal Year Ending March 31, 2008” released on the same day of this report,
November 15, 2007.

3

(2) Analysis of Financial Condition
Total assets at the end of this half year period stood at ¥621,109 million, an increase of ¥43,050 million (+7.4%)
from the previous fiscal year-end. Of this, current assets decreased ¥25,466 million (-24.2%) to ¥79,685 million, andfixed assets grew ¥68,516 million (+14.5%) to ¥541,423 million.
The primary change in current assets is the ¥20,572 (-62.9%) million decrease in marketable securities due toredemption of commercial paper, etc.
In fixed assets, property, plant and equipment increased ¥9,501 million (+8.2%). This increase was mainly due to anincrease in the numbers of production wells in Japan and Canada. Intangible fixed assets declined chiefly due toamortization of goodwill. Investments and others increased by ¥59,884 million (+17.1%), due to acquisition ofshares in Energi Mega Pratama Inc. (EMPI) and the rise in the stock price of INPEX Holdings Inc.
Total liabilities rose ¥7,923 million (+5.0%) to ¥167,053 million from the end of the previous fiscal year. This
increase which was attributable to the ¥12,110 million (+9.9%) increase in long-term liabilities arising from higher
deferred tax liabilities that was due to an increase in the difference on valuation of investment securities, offset the¥4,187 million (-11.4%) decrease of current liabilities which was mainly due to payment of payables associated withthe construction costs for the Shiroishi-Koriyama pipeline.
Total net assets increased ¥35,127 million (+8.4%) to ¥454,056 million from the end of the previous fiscal year,
mainly as a result of a rise in unrealized holding gains on securities.
As a result, the equity ratio as of September 30, 2007 was 71.7%.
As of September 30, 2007, cash and cash equivalents totaled ¥40,079 million, down ¥20,120 million, compared tothe end of the previous fiscal year. Below is a summary of cash flows of each activity.
(Cash Flows from Operating Activities)
Funds provided by operating activities was ¥16,936 million, an increase of ¥3,732 million (+28.3%) from the same
period of the previous fiscal year. This is mainly attributable to ¥13,239 million in income before income taxes and¥7,730 million in depreciation and amortization, and ¥4,543 million in income taxes paid.
(Cash Flows from Investing Activities)
Funds used in investing activities amounted to ¥34,790 million, an increase of ¥28,366 million (+441.6%) from thesame period of the previous fiscal year. This was mainly due to the payment of ¥21,923 million for acquisition ofproperty, plant and equipment in Japan and Canada, and the payment of ¥20,552 million arising from the acquisitionof investments in securities including the purchase of 25% of the shares of EMPI, who holds interests in the
Kangean block in East Java, Indonesia.
(Cash Flows from Financing Activities)
Funds used in financing activities was ¥2,684 million, an increase of ¥1,866 million (+228.2%) from the same
period of the previous fiscal year. This was primarily due to a payment of cash dividends of ¥1,144 million and therepayment of long-term debt of ¥1,139 million.
Trends of Cash Flow Indicators
Fiscal Years Ended March 31
2008
2004
2005
2006
2007
and Interim Period Ended
Interim
September 30
Equity ratio
(%)
79.3
74.5
72.5
71.0
71.7
Equity ratio on mark-to-market
96.4
63.6
78.9
87.1
78.6
basis
(%)
Interest-bearing debt to cash
—
0.5
0.7
0.5
0.6
flow ratio(years)Interest coverage ratio(times)
60.3
86.8
188.1
323.3
181.4
Equity ratio: Equity/total assets
Equity ratio on mark-to-market basis: Total market capitalization/total assets
Interest-bearing debt to cash flow ratio: Interest-bearing debt/cash flows(The figure for the first half of the fiscal year ending March 2008 is not presented in the table.)Interest coverage ratio: Cash flows/interest paid
* The above indicators are calculated based on consolidated financial figures.
* Total market capitalization is calculated based on the number of shares outstanding (excluding treasury stock).
* The above calculations use figure of net cash flows from operating activities for the figure of cash flows.
* Interest-bearing debt is all debt subject to interest payments within liabilities shown on the consolidated balance
sheets. Interest paid is that shown on the consolidated statement of cash flows.

4(3) Fundamental Policy on Allocation of Profits and Dividends for This Year
The Company’s basic policy is to sustain stable dividends over the long term. Taking into account the medium andlong-term outlook for the business, dividend payments are set based on respect for the return of profits toshareholders. While considering the need to acquire new reserves as an energy company that plays a role inproviding stable supplies of oil and natural gas, indispensable resources for society, the policy also takes into
account the need for retained earnings to finance the acquisition of new reserves and to upgrade and improvetransportation systems, primarily pipelines.
Based on the above reasoning, an annual dividend of ¥40 per share (a total of ¥20 per share interim dividend and¥20 per share year-end dividend) is planned for the current year.
(4) Risk Factors
The disclosure of this section is omitted as there is no significant change from the Risk Factors described in thelatest Securities Report filed on June 26, 2007.

5

II. Business Policies
The disclosure of this section is omitted as there is no significant change from Consolidated Financial Results for
Fiscal Year Ended March 31, 2007 disclosed on May 14, 2007.

6III. Consolidated Interim Financial Statements(1) Consolidated Interim Balance Sheets
As of Sept. 30, 2006
Description

Amount (¥ million)

As of Sept. 30, 2007(%)

Amount (¥ million)

As of March 31, 2007(%)

Amount (¥ million)(%)(Assets)
I.

Current assets
1. Cash and deposits

20,55923,60927,1692. Notes and accounts receivable

13,89017,782

24,4513. Marketable securities

29,961

12,141

32,714

4. Inventories

12,47913,0128,683

5. Other current assets

5,481

13,14812,145

(9)

(9)

(12)

Less: Allowance for doubtfulreceivables
Total current assets

82,362

15.7

79,68512.8

105,152

18.2

II. Fixed assets
1. Property, plant and equipment(1) Buildings and structures

41,112

54,76954,892(2) Machinery and equipment

28,66828,001

29,258(3) Land

13,181

13,17013,164(4) Other property, plant andequipment

23,1802. Intangible fixed assets

106,143

29,0696,077

125,010

18,192

6,716

115,508
7,585

3. Investments and others(1) Investments in securities

320,668

398,856

341,162(2) Others

17,177

19,60418,081

(97)

(97)

(95)

Less: Allowance for doubtfulreceivables
Allowance for losses onoverseas investments(8,888)328,859(8,665)

Total fixed assets

441,080

84.3

Total assets

523,442 100.07

409,697
541,423(9,335)87.2

621,109 100.0

349,812472,907

81.8

578,059 100.0

As of Sept. 30, 2006
Description

Amount (¥ million)

As of Sept. 30, 2007(%)

Amount (¥ million)

As of March 31, 2007(%)

Amount (¥ million)(%)（Liabilities）
I.

Current liabilities
1.

Notes and accounts payable

6,872

11,8209,395

2.

Current portion of long-term debt

972

2,278

2,278

3.

Reserve for directors’ bonus

47

54

96

4.

Accrual for losses on disaster

—

486

—

5.

Other current liabilities

14,864

18,03725,094

Total current liabilities

22,755

4.4

32,677

5.3

36,864

6.4

II. Long-term liabilities
1.

Long-term debt

16,028

16,583

17,722

2.

Deferred tax liabilities

82,188107,823

94,2673.

Accrued retirement benefits for
employees
Accrued retirement benefits for
directors
Accrued estimated cost ofabandonment of wells

5,056

5,073

5,434

577

443

608

3,176

3,785

3,459

4.
5.
6.

Accrual for losses on projects

716

479

601

7.

Other reserves

98

117

108

8.

Other long-term liabilities

12

68

62

Total long-term liabilities

107,853

20.6

134,375

21.6

122,265

21.1

Total liabilities

130,60825.0

167,053

26.9

159,130

27.5（Net Assets）
I.

Shareholders’ equity
1.

Capital14,2882.7

14,2882.3

14,2882.5

2.

Retained earnings

218,22841.7

235,965

38.0

227,413

39.3

3.

Treasury stock
Total shareholders’ equity(4) (0.0)(6) (0.0)(5) (0.0)

232,51244.4

250,24740.3

241,69641.8

152,150

29.0

193,67031.2

168,234

29.1

Deferred gain (loss) on hedging

10

0.0

6

0.0

55

0.0

Translation adjustments

885

0.2

1,651

0.2

707

0.1

153,047

29.2

195,32831.4

168,997

29.2

III. Minority interests

7,274

1.4

8,479

1.4

8,234

1.5

Total net assets

392,83375.0

454,05673.1

418,929

72.5

Total liabilities and net assets

523,442 100.0

II. Difference on valuation andconversion, etc.
1. Difference on valuation of othermarketable securities
2.
3.

Total difference on valuation andconversion, etc.

8621,109 100.0

578,059 100.0

(2) Consolidated Interim Statements of Income

Description

FY2007 1st half
(Apr. 1, 2006 - Sept. 30,
2006)

FY2008 1st half
(Apr. 1, 2007 - Sept. 30,
2007)

FY2007(Apr. 1, 2006 - Mar. 31,
2007)

Amount (¥ million)

Amount (¥ million)

Amount (¥ million)

(%)

(%)

(%)

I.

Net sales

67,138 100.0

91,360 100.0

170,018 100.0

II.

Cost of sales

37,64356.1

62,981

68.9

104,174

61.3

Gross profit

29,49543.9

28,37931.1

65,844

38.7

8,178

4.8

III. Exploration expenses
1.

Exploration expenses

3,021

2.

Exploration subsidies(81)

IV. Selling, general and administrative
expenses
Operating income
V.

5,176
2,940

4.3

14,027
12,528

—

8,987
5,176

5.7

(809)

20.9

14,171

15.5

27,946

16.4

18.7

9,031

9.9

29,719

17.5

6,649

3.9

1,663

1.0

34,705

20.4

967

0.6

1,012

0.6

34,66020.4

11,9097.0

Non-operating income

1.

Interest income

634

794

1,355

2.

Dividend income

2,277

2,277

2,805

3.

Equity in profit of non-consolidated
subsidiaries and affiliates
Reversal of allowance for losses onoverseas investments

219

935

690

205

668

—

122

270

4.
5.

Reversal of accrual for losses on projects

155

6.

Other non-operating income

476

3,969

5.9

709

5,509

6.0

1,527

VI. Non-operating expenses
1.

Interest expense

37

99

120

2.

Loss on sales of securities

141

134

241

3.

Provision for accrued estimated cost ofabandonment of wells

268

293

569

4.

Exchange loss

136

5.

Other non-operating expenses

163

Ordinary income

—
746

1.1

15,750

23.5

188

—
715

0.8

13,82515.1

731

VII. Extraordinary income
1.

Reversal of allowance for doubtfulreceivables

5

2.

Other extraordinary income

—

4
5

0.0

0

0
5

0.0

966

VIII. Extraordinary losses
1.

Loss on disposal of fixed assets

65

38

387

2.

Earthquake disaster recovery expenses

—

551

—

Other extraordinary losses—

3.

Income before income taxes andminority interests
Current income taxes

5,086

Deferred income taxes(886)

Minority interests
Net income

65

0.1

15,690

23.4

0

590

0.6

13,239

14.5

4,284
4,200

6.3

836
10,6549(1,175)

624

9,421
3,108

3.4

2,487

1.2

434

0.5

1,768

1.1

15.9

9,695

10.6

20,982

12.3

(3) Consolidated Interim Statement of Changes in Shareholders’ Equity, etc.
Consolidated Interim Statement of Changes in Shareholders’ Equity etc.
Interim Period (April 1, 2006 - September 30, 2006)(unit: ¥ million)
Shareholders’ equity
Retained
Treasury
earnings
stock

CapitalBalance as ofMarch 31,2006
Changesduring interim
periodDistributions
from retained
earnings (note)
Directors’
bonuses (note)
Net income
Changesduring interim
period otherthanshareholders’equity items(net)
Total changes
during interim
periodBalance as of
September 30,
2006

14,288Difference on valuation and conversion, etc.
Minority
interests
Total share- Difference Deferred
Translation Total
holders’on valuation gain (loss) adjustments difference
equityof otheron hedging
on valuation
marketableandsecurities
conversion,
etc.
(4)
223,379
161,949894
162,843
7,762—

209,095

Total net
assets393,985(1,428)(1,428)(1,428)

(92)

(92)

(92)

10,654

10,654(9,798)10(8)(9,796)(488)

10,654(10,284)

—

9,133

—

9,133

(9,798)10(8)(9,796)(488)(1,151)

14,288218,228(4)

232,512152,15010885

153,047

7,274

392,833(Note) These items represent distribution of earnings resolved at the General Meeting of Shareholders in June 2006.

Consolidated Interim Statement of Changes in Shareholders’ Equity etc.
Interim Period (April 1, 2007 - September 30, 2007)(unit: ¥ million)
Shareholders’ equity
Retained
Treasury
earnings
stock

CapitalBalance as ofMarch 31,2007
Changesduring interim
periodDistributions
from retained
earnings
Net income

14,288227,413(1,143)

9,695

Acquisition oftreasury stock

Changesduring interim
period otherthanshareholders’equity items(net)
Total changes
during interim
periodBalance as of
September 30,
2007

(5)

(1)

Difference on valuation and conversion, etc.
Minority
interests
Total share- Difference Deferred
Translation Total
holders’on valuation gain (loss) adjustments difference
equityof otheron hedging
on valuation
marketableandsecurities
conversion,etc.
241,696

168,23455

707

168,997

8,234

Total net
assets418,929(1,143)(1,143)

9,695
(1)

9,695
(1)
25,435(49)944

26,331

245

26,576

—

8,552

(1)

8,551

25,435(49)944

26,331

245

35,127

14,288

235,965(6)

250,247

193,670

6

1,651

195,3288,479

454,05610

Consolidated Statement of Changes in Shareholders’ Equity etc.
Fiscal Year 2006 (April 1, 2006 - March 31, 2007)
CapitalBalance as ofMarch 31,2006
Changes during
Fiscal Year
Distributions
from retained
earnings (note)
Distributions
from retained

223,379(Unit: ¥ million)
Minority
Total
Difference on valuation and conversion, etc.
interests
net assets
Transition
Total
Deferred
Difference
adjustments difference on
on valuation gain
valuation(loss) onof otherandmarketable hedging
conversion,
securities
etc.
161,949894
162,843
7,762
393,985—(1,428)(1,428)(1,428)(1,143)(1,143)(1,143)

(92)

(92)

(92)

20,982(0)

20,982(0)

Shareholder’s equity
Retained
Treasury
earnings
stock

14,288209,095

Total shareholder’s
equity(4)earnings
Directors’
bonuses (note)
Net income
Acquisition oftreasury stock
Changes during
Fiscal Year otherthanshareholders’equity items (net)Total changes
during Fiscal
Year

20,982
(0)

6,285

55

(187)

6,154

472

6,626

6,285

55

(187)

6,154

472

24,943

Balance as of
14,288227,413(5)
241,696
168,23455
707
March 31, 2007
(Note) These items represent distribution of earnings resolved at the General Meeting of Shareholders in June 2006.

168,9978,234

418,929—

18,318(0)

18,31711

(4) Consolidated Interim Statements of Cash FlowsFY2007 1st half
(Apr. 1, 2006 - Sept.
30, 2006)

FY2008 1st half
(Apr. 1, 2007 - Sept.
30, 2007)

FY2007(Apr. 1, 2006 - Mar.
31, 2007)

Amount (¥ million)

Amount (¥ million)

Amount (¥ million)

1. Income before income taxes and minority interests

15,69013,23934,6602. Depreciation and amortization

Description
I. Operating activities

7,080

7,730

14,938

3. Amortization of goodwill

491

514

1,006

4. Decrease in allowance for doubtful receivables
5. Increase (decrease) in provision for accrued retirement
benefits for employees
6. Decrease in provision for accrued retirement benefits for
directors
7. Increase in provision for accrued estimated cost ofabandonment of wells
8. Decrease in provision for allowance for losses on overseas
investments and accrual for losses on projects
9. Interest and dividend income

(33)

(0)

(32)

320

(361)

699

(184)

(165)

(153)

227

253

510

10. Interest expense
11. Gain on redemption and sales of marketable securities andinvestments in securities
12. Loss on redemption and sales of marketable securities andinvestments in securities
13. Equity in gains （losses） of non-consolidated subsidiaries
and affiliates
14. Decrease (increase) in notes and accounts receivable

(362)

(792)

(29)

(2,912)(3,071)(4,161)

37

99

120

(6)

(167)

(119)

141

134

241

(219)

(935)

(690)

4,830

6,923

(5,733)

15. Decrease (increase) in inventories(3,684)(4,328)111

16. Increase (decrease) in notes and accounts payable(2,717)

1,703

3,757

17. Increase (decrease) in consumption tax payable

(293)

266

(550)

18. Other, net

642

(15)

(1,093)19,04821,02643,481

1,567

453

2,643

(7,412)(4,543)(11,868)

13,203

16,93634,256

Subtotal
19. Collection of claim for indemnity of guaranteed debt
implementation
20. Income taxes paid
Net cash provided by operating activities
II. Investing activities
1. Investments in time deposits

(311)

(255)

(3,334)

2. Proceeds from time deposits

933

3,761

948

3. Proceeds from redemption and sale of marketable securities
4. Additions to property, plant and equipment
5. Additions to intangible fixed assets
6. Payments for acquisition of investments in securities
7. Proceeds from redemption and sale of investments insecurities
8. Increase in loans receivable

800

400

1,300

(10,847)(21,923)(23,485)

(632)

(334)

(1,388)(3,942)(20,552)(4,950)

3,232

4,689

7,643

(133)

(5,081)(165)

9. Decrease in loans receivable

674

183

1,241

10. Interest and dividends received

2,752

3,275

4,283

11. Other, net

1,050

1,047

(233)

(6,423)(34,790)(18,140)

Net cash used in investing activities

12

III.

FY2007 1st half
(Apr. 1, 2006 - Sept.
30, 2006)

FY2008 1st half
(Apr. 1, 2007 - Sept.
30, 2007)

FY2007(Apr. 1, 2006 - Mar.
31, 2007)

Description

Amount (¥ million)

Amount (¥ million)

Amount (¥ million)

1. Proceeds from long-term debt

2,000

—

5,000

2. Repayment of long-term debt—

(1,139)—

3. Purchase of treasury stock

—

(1)

(0)

4. Cash dividends paid

(1,428)(1,144)(2,571)

5. Dividends paid to minority shareholders

Financing activities(1,015)(306)(1,015)

6. Interest paid

(31)

(93)

(105)

7. Payment of capital reduction for minority interests

(342)

—

(342)

—

—

(47)

(817)

(2,684)

917

(48)

418

84

8. Other, net
Net cash used in financing activities
IV.

Effect of exchange rate changes on cash and cash equivalents

V.

Increase (decrease) in cash and cash equivalents

5,913(20,120)

17,117VI.

Cash and cash equivalents at beginning of the period

43,08260,19943,082

48,99640,07960,199VII. Cash and cash equivalents at the period-end

13IV. Status of Production and Sales(1) Production
E & P Division
Division

Product

FY2007 1st half
(Apr. 1, 2006 - Sept. 30, 2006)

FY2008 1st half
(Apr. 1, 2007 - Sept. 30, 2007)

FY2007(Apr. 1, 2006 - Mar. 31, 2007)

361,314350,295

791,517(87,356)(81,335)(186,759)

Natural Gas(thousand m3)

556,619564,545

1,247,087(30,223)(29,842)(62,705)

LNG (t)10,20010,98825,584

Bitumen(kl)

229,832

194,912447,430(229,832)(194,912)(447,430)

Crude Oil (kl)E&P

(Notes)1. The figures in parentheses represent overseas production and are included in the total.
2. Part of the natural gas production volume is used as a feedstock for LNG.
3. Bitumen is heavy crude oil extracted from oil sands.

(2) Sales
E & P Division

Division

Product

FY2007 1st half
(Apr. 1, 2006 - Sept. 30, 2006)
VolumeE&P

Amount(¥ million)

FY2008 1st half
(Apr. 1, 2007 - Sept. 30, 2007)
VolumeAmount(¥ million)

FY2007(Apr. 1, 2006 - Mar. 31, 2007)
VolumeAmount(¥ million)

Crude Oil (kl)

700,771

32,815

1,031,766

54,326

1,821,618

84,931Natural Gas(thousand m3)

614,702

18,893631,765

20,102

1,411,309

44,949LNG (t)65,342

3,540

74,067

4,413

208,384

10,879Bitumen (kl)229,981

4,410

195,580

4,851

444,985

9,777

Subtotal

59,65983,693

150,538

1,013

915

5,383

1,013

915

5,383

6,465

6,751

14,096

Subtotal

6,465

6,751

14,096

Total

67,13891,360170,018

Contract Services
Subtotal
Other Business(Notes)1. Other Businesses Division is primarily involved in the sale of oil products, including liquefied petroleum gas (LPG) and fuel oil, as wellas transportation of natural gas and oil products on consignment.
2. Monetary amounts in the table do not include consumption tax.

14