Consolidated Financial Results for First Three Quarters of Fiscal Year Ending March 31,
2004
February 13, 2004
Note: The following report is a translation of the Japanese-language original.
Company Name: Japan Petroleum Exploration Co., Ltd.
(Company Code: 1662, First Section, Tokyo Stock Exchange)(URL: http://www.japex.co.jp/)
President: Yuji Tanahashi
Inquiries: Koichi Shimomura, Manager, Media Relations, Administration Department
TEL: (03) 5461-7413
1. Notes Relating to Preparation of Quarterly Financial Statements(1) Changes in accounting treatment from the most recent consolidated fiscal year: No(2) Changes in scope of consolidation and application of equity method: Yes
Consolidated (Added): 1 company; Equity-method (Excluded): 2 companies
2. Consolidated Results for First Three Quarters of Fiscal Year 2004 (April 1, 2003 – December 31,
2003)(1) Consolidated Operating Results (Amounts less than one million yen have been omitted)
Operating
Net Sales
Ordinary Income
Net Income
Income(¥ million)% (¥ million)% (¥ million)% (¥ million)%
3Q FY04
67,0798,593
10,102
7,123
−
−
−
−
3Q FY03
−
−
−
−
−
−
−
−
90,683
15,82812,7698,828（Ref.）FY03
Net Income per
Share
(¥)
124. 62−
153. 14

Diluted Net
Income per
Share
(¥)
−
−
−

3Q FY04
3Q FY03（Ref.）FY03(Notes)
1. Percentage figures for net sales, operating income and other items represent changes comparedwith the corresponding period of the previous fiscal year.
2. No comparisons are available with the corresponding period of the previous fiscal year because
this is the first time that the Company has released quarterly financial results.
3. Diluted net income per share is not shown because there are no shares with a dilutive effect.
(2) Consolidated Financial Position
Total Assets(¥ million)
243,095−
242,455

Shareholders’Equity(¥ million)
192,356−
186,914

Shareholders’Equity Ratio
%
79.1
−
77.1

Net Assets per
Share
(¥)
3,365.54−
3,268.99

Dec. 31, 2003
Dec. 31, 2002
(Ref.) Mar. 31,
2003(Note) No comparisons with the corresponding period of the previous fiscal year are available
because this is the first time that the Company has released quarterly financial results.
‑1‑(3) Consolidated Cash Flows
Period-end Cashand Cash
Equivalents(¥ million)(¥ million)(¥ million)(¥ million)
3Q FY04
13,596(5,730)(4,122)
27,4053Q FY03−−−−
21,619(11,915)(7,981)
23,866（Ref.）FY03(Note) No comparisons with the corresponding period of the previous fiscal year are available
because this is the first time that the Company has released quarterly financial results.
Operating
Activities

Investing
Activities

Financing
Activities

3. Forecast for Fiscal Year 2004
There is no change to the earnings forecast announced on December 10, 2003.

‑2‑

Overview of Consolidated Operating Results
I. Overview of Consolidated Operating Results for First Three Quarters of Fiscal Year Ending
March 31, 2004
Net sales were ¥67,079 million, ordinary income was ¥10,102 million and net income was ¥7,123
million. During the period under review, the domestic crude oil price remained high, contributing to
growth in sales of oil and natural gas. Results by operating segment were as follows:
1. Oil and Natural Gas Segment（1）E&P Division
The sale of crude oil, natural gas and LNG is the principal activity in this division. Division sales
totaled ¥57,344 million on higher sales volumes of oil and natural gas.
（2）Contract Services Division
Drilling, seismic data acquisition and processing are the principal activities in this division.
Division sales totaled ¥2,630 million on an increase in the volume of contract services orders.
（3）Other Businesses DivisionThis division mainly represents the manufacturing and trading of petroleum products such as LPG
and fuel oil, the transmission of third-party gas, and other miscellaneous consignment orders.
Division sales totaled ¥6,071 million on higher sales volumes of petroleum products.
2. Geothermal Energy Segment
Geothermal Energy BusinessThis division, which sells steam for electric power generation, recorded sales of ¥1,032 million in
the period under review.
II. Cash Flows
Cash and cash equivalents at December 31, 2003 stood at ¥27,405 million, ¥3,539 million higher
than at March 31, 2003.
(Cash Flows From Operating Activities)
Operating activities provided net cash of ¥13,596 million, mainly reflecting income before income
taxes and minority interests of ¥9,918 million and depreciation and amortization of ¥7,548 million.
(Cash Flows From Investing Activities)
Investing activities used net cash of ¥5,730 million. The main outflow was ¥6,363 million for thepurchase of property, plant and equipment.
(Cash Flows From Financing Activities)
Financing activities used net cash of ¥4,122 million, reflecting mainly outflows of ¥1,865 million for
the repayment of long-term debt and ¥1,428 million for the payment of cash dividends.

‑3‑

Consolidated Financial Statements
1. Consolidated Balance Sheets(¥ million)
Period(As of December 31, 2003)

Description(As of March 31, 2003)

AmountAmount％(Assets)％

ⅠCurrent assets
1. Cash and deposits

23,203

20,162

2. Notes and accounts receivable

9,740

11,746

3. Marketable securities

11,3218,191

4. Inventories

8,050

8,785

5. Other current assets

5,834

5,795

(9)

Less: Allowance for doubtful receivables
Total current assets

58,140(31)
23.9

54,650

22.5

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

53,63257,317(2) Machinery and equipment

12,34313,024(3) Land

11,998(4) Other property, plant and equipment

16,183

2. Intangible fixed assets

12,011
94,157

12,907724

95,261565

3. Investments and others(1) Investments in securities

83,36287,778(2) Others

20,337

20,993(117)

Less: Allowance for doubtful receivables
Allowance for losses on overseas investments(13,508)(134)(16,659)

90,073

91,978

Total fixed assets

184,955

76.1

187,805

77.5

Total assets

243,095

100.0

242,455

100(Liabilities)
I Current liabilities
1. Notes and accounts payable

2,195

2. Short-term bank loans
3. Current portion of long-term debt

5,476

525

900

2,308

2,315

4. Other current liabilities

9,988

Total current liabilities

15,017

9,495
6.2

18,186

7.5

II Long-term liabilities
1. Long-term debt

9,450

11,3092. Accrued retirement benefits for employees

4,030

3,276

3. Accrued retirement benefits for officers

663

598

4. Accrued estimated cost of abandonment of wells

2,525

3,122

5. Accrual for losses on projects

11,562

11,4806. Other long-term liabilities

2,152

Total long-term liabilities

30,38412.5

31,954

13.2

Total liabilities

45,40218.7

50,141

20.7

5,336

2.2

5,400

2.2

2,166

(Minority interests)
Minority interests in consolidated subsidiaries(Shareholders’ equity)
I Common stock

14,2885.9

14,288

5.9

II Retained earnings

177,98873.2

172,370

71.1

III Unrealized holding gain on securities

2,638

1.1

2,304

0.9

IV Translation adjustments(2,558)(1.1)(2,048)

(0.8)

(0)

(0.0)

−

−

Total shareholders’ equity

192,35679.1

186,914

77.1

Total liabilities, minority interests and shareholders’ equity

243,095

100

242,455

100

V Treasury stock‑4‑

2. Consolidated Statements of Income(¥ million)
PeriodFirst Three Quarters of FY 2004

FY 2003(Apr. 1, 2003 – Dec. 31, 2003)(Apr. 1, 2002 – Mar. 31, 2003)

Description

AmountAmount%%I Net sales

67,079100

90,683100

II Cost of sales

40,73960.7

52,28857.7

26,33939.3

38,394

42.3

3,106

4.6

3,113

3.4

Gross profit
III Exploration expenses
1. Exploration expenses

3,590

2. Exploration subsidies(483)

IV Selling, general and administrative expenses
Operating income

3,695
(582)

14,63921.919,452

21.4

8,593

12.8

15,828

17.5

3,406

3.7

6,465

7.1

12,76914.1

V Non-operating income
1. Interest income

922

1,454

2. Dividend income

1,034

1,226

3. Reversal of allowance for losses on overseas investments

2,531

−

4. Other non-operating income

514

5,003

7.5

725

VI Non-operating expenses
1. Interest expense
2. Devaluation loss on securities

267

590

57

2,236

2,335

722

4. Provision for allowance for losses on overseas investments−

151

5. Provision for accrued estimated cost of abandonment of wells

70

986

6. Provision for losses on projects

285

7. Other non-operating expenses

478

3. Equity in losses of unconsolidated subsidiaries and affiliates

821
3,495

5.2

10,102

15.1

24

24

0

65

65

0.1

208

208

0.3

262

262

0.3

9,918

14.8

12,572

13.9

Ordinary income

957

VII Extraordinary income
1. Reversal of allowance for doubtful receivables
VIII Extraordinary losses
1. Loss on disposal of fixed assets
Income before income taxes and minority interests
Current income taxes

2,222

Deferred income taxes

332

Minority interests
Net income

‑5‑

1,654
2,555

3.8

3,571

4.0

240

0.4

1,916

172

0.2

7,123

10.6

8,828

9.7

3. Consolidated Statements of Cash Flows(¥ million)
First Three Quarters
Periodof FY 2004
(Apr. 1, 2003 –Description

Dec. 31, 2003)

I Operating activities
1. Income before income taxes and minority interests
2. Depreciation and amortization
3. Loss on devaluation of marketable securities and investments in securities
4. Decrease in allowance for doubtful receivables
5. Increase (decrease) in provision for accrued retirement benefits for employees
6. Increase (decrease) in provision for accrued retirement benefits for officers
7. Decrease in provision for accrued estimated cost of abandonment of wells
8. Decrease (increase) in provision for allowance for losses on overseas investments and accrual for

FY 2003(Apr. 1, 2002 –Mar. 31, 2003)

AmountAmount

9,918
7,548
57
(23)
757
64
(555)

12,572
9,817
2,236
(104)
(188)
(28)
(25)

losses on projects
9. Interest and dividend income
10. Interest expense
11. Gain on redemption and sales of marketable securities and investments in securities
12. Loss on redemption and sales of marketable securities and investments in securities
13. Equity in losses of unconsolidated subsidiaries and affiliates
14. Decrease (increase) in notes and accounts receivable
15. Decrease (increase) in inventories
16. Increase in prepaid expenses
17. Decrease in advances
18. Increase (decrease) in notes and accounts payable
19. Increase (decrease) in consumption tax payable
20. Other, net
Subtotal
21. Income taxes (paid) refunded
Net cash provided by operating activities(3,069)132(1,957)
267
(186)
−
2,335
2,002
735
(321)
209
(2,640)(46)
169
15,265(1,668)13,596(2,681)
590
(108)
295
722
(1,172)(2,261)
−
−
1,654
259
(305)
21,405
214
21,619II Investing activities
1. Investments in time deposits
2. Proceeds from time deposits
3. Payments for purchase of marketable securities
4. Proceeds from redemption and sale of marketable securities
5. Additions to property, plant and equipment
6. Proceeds from sales of property, plant and equipment
7. Additions to intangible fixed assets
8. Payments for purchase of investments in securities
9. Proceeds from redemption and sale of investments in securities
10. Increase in loans receivable
11. Decrease in loans receivable
12. Increase in money trusts
13. Decrease in money trusts
14. Interest and dividends received
15. Other, net
Net cash used in investing activities(330)−(2,998)4,444(6,363)34(291)(6,264)
4,072
(527)
543
−
−
1,884
67
(5,730)(25)
1,029(1,079)7,515(11,908)8(94)(14,434)
4,773
(441)
65
(500)
500
2,651
21
(11,915)

III Financing activities
1. Increase (decrease) in short-term bank loans
2. Repayment of long-term debt
3. Purchase of treasury stock
4. Cash dividends paid
5. Dividends paid to minority shareholders
6. Interest paid
Net cash used in financing activities(375)(1,865)(0)(1,428)(197)(255)(4,122)650(6,377)−(1,428)(197)(627)(7,981)

(204)
3,539
23,866−
27,405(270)
1,452
22,592(179)

IV Effect of exchange rate changes on cash and cash equivalents
V Increase in cash and cash equivalents
VI Cash and cash equivalents at beginning of year
VII Decrease in cash and cash equivalents arising from exclusion from consolidation
VIII Cash and cash equivalents at period-end‑6‑

23,866

Status of Production and Sales
１．Production(1) Oil and Natural Gas Segment
DivisionFirst Three Quarters of FY 2004
(Apr. 1, 2003 – Dec. 31, 2003)

Product

E&P
Operations

C r u d eo i l412,748 kl（2,358）510,249 kl（5,031）

N a t u r a l

g a s

718,599 thousand ㎥（5,357）950,158 thousand ㎥（10,506）

L

N

L

Other
Businesses(Ref.) FY2003(Apr. 1, 2002 – Mar. 31, 2003)

P

Fuel

4,105

ｔ

−

7,564

ｔ

11,231ｔ

38,274kl

36,655

kl

G
G

oil,

etc.

（Notes）
1. The figures in parentheses in E&P Operations represent overseas production and are included in the total.
2. Part of the oil production volume is used as a feedstock for LPG, fuel oil and other products.
3. Part of the natural gas production volume is used as a feedstock for LNG, LPG and other energies.

(2) Geothermal Energy Segment
Division

Product

First Three Quarters of FY 2004
(Apr. 1, 2003 – Dec. 31, 2003)

Geothermal
EnergyDevelopment

S t e a m

848,753ｔ(Ref.) FY 2003
(Apr. 1, 2002 – Mar. 31, 2003)
1,157,389

ｔ

２．Sales(1) Oil and Natural Gas Segment
DivisionFirst Three Quarters of FY 2004
(Apr. 1, 2003 – Dec. 31, 2003)

Product

VolumeAmountkl

C r u d e
E&P
Operations

o i l1,162,330(¥ million)
24,618thousand ㎥

N a t u r a l

g a s

912,817(Ref.) FY 2003
(Apr. 1, 2002 – Mar. 31, 2003)
Volumekl

1,445,798

N

G

Subtotal
Contract
Services
Subtotal

30,115

1,154,764

P

G

2,610

61,294

3,058−

57,344−75,281

−

2,630

−

5,815

−

2,630

−

5,815

21,624(¥ million)
1,033

ｔ

36,400kl

Other
Businesses

41,479ｔ

51,697ｔL(¥ million)
30,743thousand ㎥ｔ

LAmount(¥ million)
1,786

kl

F u e lo i l ,

e t c .

59,704

2,472

71,518

2,811

O

h

r

−

2,565

−

3,793

Subtotal

−

6,071

−

8,390

Total

−

66,046−89,486

t

e

s

‑7‑

(2) Geothermal Energy Segment
DivisionFirst Three Quarters of FY 2004
(Apr. 1, 2003 – Dec. 31, 2003)

Product

VolumeGeothermal
EnergyDevelopment

Amount
ｔ

S

t

e
Total

a

m

813,191(¥ million)
1,032

−

1,032

(Ref.) FY 2003
(Apr. 1, 2002 – Mar. 31, 2003)
VolumeAmountｔ

1,080,685(¥ million)
1,196

−

1,196

（Notes）
1. Others in Other Businesses includes revenue from the transmission of third-party gas through JAPEX’s pipeline network and salescommissions.
2. Monetary amounts in the tables do not include consumption tax.

‑8‑