[Explanatory Material]

Financial Results

for the Nine Months Ended December 31, 2023

February 9, 2024

Japan Petroleum Exploration Co., Ltd.
Note: This document has been translated from the Japanese original for reference purposes only.
In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.
Copyright © 2024 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

Contents
Ⅰ. Financial Highlights
Ⅱ. Financial Results for the Nine Months Ended December 31, 2023
Ⅲ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

Note: This material also serves as the presentation material for the financial results briefing for the institutional investors and analysts
to be held on February 13, 2024.

Copyright © 2024 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

2

Ⅰ. Financial Highlights
Ⅱ. Financial Results for the Nine Months Ended December 31, 2023
Ⅲ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

Copyright © 2024 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

3

Ⅰ. Financial Highlights

Financial Highlights
1-3Q FY3/24 Results （Year-on-Year）
1-3Q
FY3/23(a)(Billion Yen)

FY3/24 Forecasts Revision （vs Nov.10 Forecasts）

1-3Q
FY3/24(a)Change(Billion Yen)

Previous(f) Nov. 10,
2023

Revised(f) Feb.
9,2024

ChangeOperating profit

38.7

39.8

+1.1

Operating profit

48.8

50.7

+1.9

Ordinary profit

57.8

48.1

(9.7)

Ordinary profit

57.0

59.1

+2.1

Profit attributable toowners of parent

43.2

36.5

(6.7)

Profit attributable toowners of parent

45.0

45.0

-



Operating profit ：Increased due to growth of sales volume

Operating profit ： Increased mainly due to start of sales fromfor U.S. tight oil development
Ordinary profit ： Decreased due to decline in equity method
profit and foreign exchange gains

the Seagull project in U.K. North Sea
Profit attributableto owners of parent ： Increased tax expense in the U.K.

Shareholder Returns


FY3/24 annual dividend (forecast)：250 yen per share (interim 125 yen + year-end forecast 125 yen), unchanged from theprevious forecast ※Based on shareholder return policy of 30% dividend payout ratio

Major Business ProgressSigned a Key Principles Agreement with PETRONAS for the maturation and development of the CCS Project in Malaysia (Nov)Agreed on Joint Study with Nippon Gas Line on domestic marine transportation of liquefied CO2 and port developments (Nov)Commenced CO2 injection field test at Sukowati oil field in Indonesia (Dec)Acquired additional well interests in tight oil development project in U.S. (Dec)Commenced Joint Study to establish ammonia supply base in Soma area, Fukushima Prefecture (Jan)Copyright © 2024 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

4

Ⅰ. Financial Highlights
Ⅱ. Financial Results for the Nine Months Ended December 31, 2023
Ⅲ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

Copyright © 2024 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

5

Ⅱ. Financial Results for the Nine Months Ended December 31, 2023

1-3Q FY3/24 Results (Year-on-Year)
Million Yen

1-3Q FY3/23 (a)1-3Q FY3/24 (a)ChangeNet sales

225,105

229,938+4,833+2%

Gross profit

63,88862,745(1,143)(2%)

Operating profit

38,74239,868+1,125+3%

Ordinary profit

57,878

48,162(9,716)(17%)

Profit attributable to owners of parent

43,28636,515(6,771)(16%)

Oil Price and Exchange Rate
1-3Q FY3/23 (a)1-3Q FY3/24 (a)ChangeWTI

USD/bbl

98.27

77.46

(20.81)

Crude oil price (CIF)

USD/bbl106.81

86.26(20.55)

Exchange rate

JPY/USD

132.69141.98+9.29

Copyright © 2024 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

6

Ⅱ. Financial Results for the Nine Months Ended December 31, 2023

E&P Business Sales (Year-on-Year)
1-3Q FY3/23 (a)Net sales：Million Yen

Unit

Sales volume

1-3Q FY3/24 (a)Net sales

Sales volume

ChangeNet sales

Sales volume

Net sales-

35,902-

72,841--+36,938

+103%

402

35,672

1,000

72,350

+597

+148%

+36,678

+103%

173

15,964161

12,778

[1]

(11)

(7%)

(3,186)(20%)

Crude oil - Overseas*1

213

18,283823

58,369

[2]

+609

+285%

+40,085+219%

Purchased crude oil

15

1,424

15

1,203

(0)

(1%)

(221)

(16%)

5

230

42

490

+37

+712%

+260

+113%

-

E&P Business
Breakdown
Crude oil
Crude oil - Japan

Thousand KL

Natural Gas - Overseas*2

Million M3

Main factors for change[1] Decrease in sales volume and sales price[2] Increase in sales volume of Iraq Garraf project and U.S. tight oil development*1 Amounts of overseas consolidated subsidiaries, Japex Garraf Ltd., and Japex (U.S.) Corp.
*2 Amounts of overseas consolidated subsidiary, Japex (U.S.) Corp.

Copyright © 2024 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

7

Ⅱ. Financial Results for the Nine Months Ended December 31, 2023

I/U Business Sales (Year-on-Year)
1-3Q FY3/23 (a)Net sales：Million Yen

Unit

Infrastructure & Utility Business-

Sales volume

1-3Q FY3/24 (a)Net sales

Sales volume

ChangeNet sales

Sales volume--(31,034)

(22%)

(45)

(7%)

(6,884)

(11%)

(19)

(6%)

-

-

(113)

(53%)

(24,683)

(71%)

+495

+23%

(784)

(2%)

-

+1,318+39%-

141,748-

110,714692

62,625646

55,741

324

-

305

-

Net sales

Breakdown
Natural Gas - Japan

Million M3- Produced in Japan

LNG

Thousand Ton

213

34,87799

10,193

Electricity

Million kWh

2,146

40,843

2,641

40,059

-

3,400

-

4,719

Other*

-

[1]

[2]

-

Main factors for change[1]-[2] Decrease in sales volume and sales price* Including net sales from commissioned transportation of natural gas and commisioned regasification of LNG

Copyright © 2024 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

8

Ⅱ. Financial Results for the Nine Months Ended December 31, 2023

Operating Profit (Year-on-Year)
E&P Business(Billion Yen)

38.7

OP total

39.8

2.2

E&P-Overseas

Overseas : +9.8 bn.

2.2 bn.→ 12.0 bn.

Japan : (5.5 bn.)

26.5 bn.

• Increase in sales volume of tight oil development in U.S.
（+）
• Foreign exchange gap related to cost recovery anddecrease in operating expenses, etc.,for the Iraqi Garraf
project（+）
•

12.0

•

21.0

21.0 bn.

Internal transaction price from E&P Business to I/U Business for theinternal management

I/U Business(0.7 bn.)

13.7

I/U

Others∗

26.5

E&P-Japan→

Decrease in sales volume and sales price of crude oil（－）
Decrease in sales volume and sales price* of natural gas（－）

12.9 bn.

Decrease in marginal gain on LNG procurement （－）
Raw material slide time lag（+）

•
•

12.9

13.7 bn. →Others *

(3.8)
(6.2)

(10.0) (5.0)

0.0

5.0

10.0

1-3Q FY3/23 (a)

15.0

20.0

25.0

1-3Q FY3/24 (a)

30.0

35.0

40.0

(2.3 bn.)(3.8 bn.) → (6.2 bn.)
・ Increase in general and administrative expenses（－）
・ Decrease in profit of contract services at subsidiaries（－）∗

Operating profit not belonging to the above business units (contracting, oil
products and commodities, and others) less headquarters administrative
expensesNote) The amounts in the operating profit breakdown by business segment are the figures for the Group’s internal management
Copyright © 2024 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

9

Ⅱ. Financial Results for the Nine Months Ended December 31, 2023

Analysis of Net Income change (Year-on-Year)(Billion Yen)

(FY3/23) Gain on derivatives (6.0 bn.)
Interest income/Dividend income ＋1.1 bn.

JUS+6.0bn.
Japex Garraf ＋3.1bn.

Japex Garraf(1.7 bn.)

SODECO
DGN
EMPI

Net
incomeOperating profit*+1.1 bn.

FY3/23
1-3Q (a)E&Poverseas

E&P
Japan

I/U

FY3/23
1-3Q (a)

2.2

26.5

FY3/24
1-3Q (a)

12.0

21.0

(3.6 bn.)(0.8 bn.)(0.4 bn.)Non-operating income(10.8 bn.)

Net
incomeOthersExtraordinary
incomeIncometaxes

Profitattributable tononcontrollinginterest

6.7

7.5

(0.0)

13.4

1.0

1.5

3.5

(0.0)

9.5

2.0

OthersForeignexchange
gains and loss

Equity on
earnings

13.7

(3.8)

4.8

12.9

(6.2)

3.2

FY3/24
1-3Q (a)Note) The amounts in the operating profit breakdown by business segment are the figures for the Group’s internal management
Copyright © 2024 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

10

Ⅰ. Financial Highlights
Ⅱ. Financial Results for the Nine Months Ended December 31, 2023
Ⅲ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

Copyright © 2024 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

11

Ⅲ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

FY3/24 Forecasts (vs Nov. 10 Forecasts)
Million Yen

Previous (f) Nov. 10, 2023

Revised (f) Feb. 9, 2024

ChangeNet sales

325,400

330,700+5,300+2%Gross profit

83,80084,200+400+0%Operating profit

48,80050,700+1,900+4%

Ordinary profit

57,00059,100+2,100+4%

Profit attributable to owners of parent

45,00045,000--

Oil Price and Exchange Rate
Previous (f) Nov. 10, 2023

Revised (f) Feb. 9, 2024

ChangeWTI

USD/bbl

77.46

75.60

(1.86)

Crude oil price (CIF)

USD/bbl

84.35

84.74

+0.39

Exchange rate

JPY/USD

139.51141.42+1.91

Copyright © 2024 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

12

Ⅲ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

E&P Business Sales Forecasts (vs Nov. 10 Forecasts)
Previous (f) Nov. 10, 2023
Net sales：Million Yen

Unit

E&P Business-

Sales volume

Net sales

Revised (f) Feb. 9, 2024
Sales volume

ChangeNet sales

Sales volume

Net sales-

94,172-

97,267--+3,094+3%

1,331

93,411

1,393

96,218+61+5%+2,806+3%219

16,479230

17,397

[1]

+11

+5%

+917

+6%

1,092

75,445

1,142

77,260

[2]

+49

+5%

+1,815

+2%

19

1,487

20

1,560

+0

+3%

+73

+5%

60

761

66

1,049

+6

+11%

+287

+38%

Breakdown
Crude oil
Crude oil - Japan
Crude oil - overseas*1

Thousand KL

Purchased crude oil

Natural Gas - Overseas*2

Million M3

Main factors for change[1] Increase in sales volume[2] Sales begin from the Seagull project in U.K. North Sea/Increase in sales volume of U.S. tight oil development*1 Amounts of overseas consolidated subsidiaries,Japex Garraf Ltd., Japex (U.S.) Corp. and JAPEX UK E&P Ltd.
*2 Amounts of overseas consolidated subsidiaries, Japex (U.S.) Corp. and JAPEX UK E&P Ltd.

Copyright © 2024 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

13

Ⅲ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

I/U Business Sales Forecasts (vs Nov. 10 Forecasts)
Previous (f) Nov. 10, 2023
Net sales：Million Yen

Unit

Infrastructure & Utility Business-

Sales volume

Net sales

Revised (f) Feb. 9, 2024
Sales volume

ChangeNet sales

Sales volume

Net sales-

168,005-

169,996--+1,991+1%961

80,950955

80,997

(5)

(1%)

+47

+0%

448

-

445

-

(3)

(1%)

-

-

+0

(0%)

(39)

(0%)

+52

+2%

+1,178

+2%

-

+804

+13%

Breakdown
Natural Gas - Japan

Million M3- Produced in Japan

LNG

Thousand Ton

279

28,617279

28,578

Electricity

Million kWh

3,468

52,1603,520

53,338Others*

-

-

6,277

-

7,081

[1]

-

Main factors for change[1] Increase in sales volume and sales price* Including net sales from commissioned transportation of natural gas and commissioned regasification of LNG

Copyright © 2024 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

14

Ⅲ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

Operating Profit Forecasts (vs Nov. 10 Forecasts)(Billion Yen)

48.8

OP total

50.7

12.8

E&P-Overseas

14.4

25.9

E&P-Japan

Overseas : ＋1.6 bn.

12.8 bn.

→

14.4 bn.

Japan : (0.4 bn.)

25.9 bn. →25.4 bn.

Sales begin from the Seagull project in U.K. North Sea（＋）
Increased production remuneration for the Iraqi Garraf
project（＋）

•
•
•
•

Increase in operating costs （－）
Increase in sales volume of crude oil (+)•

Internal transaction price from E&P Business to I/U Business for the internalmanagement

25.4

I/U Business+0.6 bn.

19.0

I/U

Others

E&P Business

•

19.7

(9.0)

(10.0)→

19.7 bn.

→(8.9 bn.)

Others*(8.9)(20.0)

19.0 bn.

Increase in marginal gain on LNG procurement （＋）

0.0

10.0

Initial (f)Nov.10, 2023

20.0

30.0

40.0

Revised (f) Feb.9, 2024

50.0

60.0

+0.1 bn.
∗(9.0 bn.)

Operating profit not belonging to the above business units (contracting,oil products and commodities, and others) less headquarters
administrative expenses

Note) The amounts in the operating profit breakdown by business segment are the figures for the Group’s internal management
Copyright © 2024 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

15

Ⅲ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

Analysis of Change in Net Income Forecasts (vs Nov. 10 Forecasts)(Billion Yen)-

JUK
Japex Garraf

Net
incomeIncrease in interest income
Decrease in interest expenses+1.2 bn.
+0.2 bn.

Operating profit*＋1.9 bn.

FY3/24 (f)Nov.10E&P
overseas

E&P
Japan

I/U

FY3/24 (f)Nov. 10

12.8

25.9

FY3/24 (f)Feb. 914.4

25.4+0.4 bn.
+0.2 bn.

JUK
Japex

(1.4 bn.)(0.4 bn.)Non-operating income+0.2 bn.

Net
incomeOthersExtraordinary
incomeIncometaxes

Profitattributable tononcontrollinginterest

0.9

4.3

(0.1)

9.6

2.3

0.6

5.2

(0.1)

12.0

2.0

OthersForeignexchange
gains and loss

Equity on
earnings

19.0

(9.0)

3.0

19.7

(8.9)

2.6

FY3/24 (f)Feb.9Note) The amounts in the operating profit breakdown by business segment are the figures for the Group’s internal management
Copyright © 2024 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

16

Ⅲ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

FY3/24 Forecasts (Year-on-Year)
Million Yen

FY3/23 (a)FY3/24 Revised (f)ChangeNet sales

336,492

330,700(5,792)(2%)

Gross profit

96,111

84,200(11,911)(12%)

Operating profit

62,08550,700(11,385)(18%)

Ordinary profit

83,13059,100(24,030)(29%)

Profit attributable to owners of parent

67,39445,000(22,394)(33%)

Oil Price and Exchange Rate
FY3/23 (a)FY3/24 Revised (f)ChangeWTI

USD/bbl

94.42

75.60

(18.82)

Crude oil price (CIF)

USD/bbl102.2684.74(17.52)

Exchange rate

JPY/USD

132.86141.42+8.56

Copyright © 2024 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

17

Ⅲ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

E&P Business Sales Forecasts (Year-on-Year)
FY3/23 (a)Net sales：Million Yen
E&P Business

Unit

-

Sales volume

FY3/24 Revised (f)Net sales

Sales volume

ChangeNet sales

Sales volume

Net sales-

56,063-

97,267--+41,204+73%

695

55,703

1,393

96,218

+697

+100%

+40,515+73%

238

20,760230

17,397(7)(3%)[1] (3,363)

(16%)

436

33,084

1,142

77,260

+706

+162%

+44,176

+134%

20

1,858

20

1,560

(0)

(4%)

(297)

(16%)

11

360

66

1,049

+55

+480%

+688

+191%

Breakdown
Crude oil
Crude oil - Japan
Crude oil - overseas*1

Thousand KL

Purchased crude oil

Natural Gas - Overseas*2

Million M3[2]

Main factors for change[1] Decrease in sales price[2] Increase in sales volume of Garraf Project in Iraq and tight oil development in U.S.

*1 Amounts of overseas consolidated subsidiaries, Japex Garraf Ltd. and Japex (U.S.) Corp. for FY3/23,and Japex Garraf Ltd., Japex (U.S.) Corp. and JAPEX UK E&P Ltd. for FY3/24.
*2 Amounts of overseas consolidated subsidiaries, Japex (U.S.) Corp. for FY3/23, and Japex (U.S.) Corp. and JAPEX UK E&P Ltd. for FY3/24.

Copyright © 2024 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

18

Ⅲ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

I/U Business Sales Forecasts (Year-on-Year)
FY3/23 (a)Net sales：Million Yen

Unit

Infrastructure & Utility Business-

Sales volume

FY3/24 Revised (f)Net sales

Sales volume

ChangeNet sales

Sales volume

Net sales-

213,657-

169,996--(43,661)

(20%)

989

97,360955

80,997(33)(3%)[1] (16,363)

(17%)

461

-

445

-

(15)

(3%)

-

-

(61)

(18%)

(22,994)

(45%)

+514

+17%

(5,396)(9%)+1,093+18%

Breakdown
Natural Gas - Japan

Million M3- Produced in Japan

LNG

Thousand Ton

340

51,572279

28,578

Electricity

Million kWh

3,005

58,735

3,520

53,338Others*

-

-

5,988

-

7,081

[2]

-

-

[3]

Main factors for change[1]-[2] Decrease in sales price of natural gas and LNG, decrease in sales volume of LNG[3] Decrease in sales price* Including net sales from commissioned transportation of natural gas and commissioned regasification of LNG

Copyright © 2024 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

19

Ⅲ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

Operating Profit Forecasts (Year-on-Year)
E&P Business(Billion Yen)

Overseas : +12.5 bn.
62.0

OP total

50.7

•
•

Japan: (15.7 bn.)
•
•

1.9

E&P-Overseas

14.4

1.9 bn.

→14.4 bn.

41.1 bn.

→

25.4 bn.

Increase in sales volume of tight oil development in U.S.
（＋）
Absence of one-time expenses, etc., of Japex Garraf Ltd.
（＋）
Decrease in sales volume and sales price of crude oil（－）
Decrease in sales volume and sales price* of natural gas（－）*Internal transaction price from E&P Business to I/U Business for the internalmanagement

41.1

E&P-Japan

I/U Business

25.4(4.8 bn.)
•

24.6

I/U

24.6 bn.

→

19.7 bn.

→(8.9 bn.)

Decrease in marginal gain on LNG procurement （－）

19.7

Others*Others(5.6)(3.2 bn.)(8.9)(20.0)

0.0
FY3/23 (a)

20.0

40.0

FY3/24 Revised (f)60.0(5.6 bn.)• Increase in general and administrative expenses(Personnel and digital-related expenditures etc.) （－）• Decrease in profit of contract services at subsidiaries (－)∗

Operating profit not belonging to the above business units (contracting,oil products and commodities, and others) less headquarters
administrative expenses

Note) The amounts in the operating profit breakdown by business segment are the figures for the Group’s internal management
Copyright © 2024 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

20

Ⅲ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

Analysis of Change in Net Income Forecasts (Year-on-Year)(Billion Yen)
Japex Garraf
JAPEX

JUS
Japex Garraf(2.2 bn.)(0.4 bn.)

SODECO
DGN
LBJ(3.1 bn.)(2.2 bn.)(0.6 bn.)+6.0 bn.
+5.2 bn.
(FY3/23) Gain on derivatives(6.0 bn.)
Dividend income/Interest income ＋1.3 bn.

NetincomeOperating profit*(11.3 bn.)Non-operating income(12.6 bn.)
OthersExtraordinary
incomeIncometaxes

Profitattributable tononcontrollinginterest

7.1

8.6

(0.0)

15.1

0.5

0.6

5.2

(0.1)

12.0

2.0

OthersForeignexchange
gains and loss

Equity on
earnings

24.6

(5.6)

5.3

19.7

(8.9)

2.6

FY3/23 (a)E&Poverseas

E&P
Japan

I/U

FY3/23 (a)

1.9

41.1

FY3/24
Revised (f)

14.4

25.4

Net
incomeFY3/24
Revised (f)Note) The amounts in the operating profit breakdown by business segment are the figures for the Group’s internal management
Copyright © 2024 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

21

Ⅲ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

Cash Flows and Debt
Million Yen

FY3/23 (a)Full year

Cash flows from operating activities

FY3/24 (f)Full year
Nov.10Feb.9

104,581

88,63588,412

Profit before income taxes

83,08456,90059,000Depreciation

14,257

24,491

26,946

Recovery of recoverable accounts

18,29539,73636,647

Cash flows from investing activities(52,723)(115,444)(95,099)

Purchase of property, plant and equipment(35,973)(85,385)(68,293)

Payments of recoverable accounts(27,729)(32,413)(30,241)

Cash flows from financing activities(14,506)(30,392)(30,161)

Cash and cash equivalents at end of period

186,166

128,965

149,318

Interest-bearing debt*1

10,413

10,14910,149

EBITDA*2

85,316

83,241

88,227

0.1

0.1

0.1

Debt-to-EBITDA ratio*1 Interest-bearing debt includes lease obligations, retirement benefit liabilities and contingent liabilities*2 EBITDA is the total of operating profit, depreciation, interest and dividends received based on investment cash flow statement
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22

Appendix
1. Net Sales

2. Financial Results
3. Segment Profit

4. Price Assumptions for FY3/24 Forecasts

5. Sensitivities Analysis on FY3/24 Forecasts Basis
6. Business Overview

7. Integrated Report and IR-related materials, etc.
8. Glossary

Copyright © 2024 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

23

Appendix

1. Net Sales - ①E&P
FY3/23 (a)Million Yen

3Q

1-3Q

21,76035,902260

FY3/24 (a)Full year

FY3/24 (f)

1Q

2Q

3Q

1-3Q

4Q

Full year (f)56,063

10,72436,81125,304

72,841

24,426

94,172

97,267

402

695

152

497

349

1,000

392

1,331

1,393

21,57035,67255,703

10,60836,65025,091

72,35023,86893,411

96,218

57

173

238

50

50

60

161

68

219

230

5,468

15,964

20,760

3,700

3,962

5,115

12,7784,619

16,47917,397

199

213

436

97

441

283

823

319

1,092

1,142

15,632

18,28333,084

6,532

32,312

19,52458,36918,89175,44577,260

4

15

20

5

5

5

15

4

19

20

469

1,424

1,858

375

375

451

1,203

357

1,487

1,560

3

5

11

10

15

16

42

23

60

66

Net sales

189

230

360

116

160

213

490

558

761

1,049

WTI（USD/bbl）

91.76

98.27

94.42

76.11

73.78

82.49

77.46

70.00

77.46

75.60

Crude oil price (CIF) (USD/bbl) *3

105.93106.81102.26

85.17

81.77

90.79

86.26

81.16

84.35

84.74

Nov. 10
Sales
Sales volume of Crude oil (Thousand KL)
Net sales
Sales volume of Crude oil - Japan (Thousand KL)
Net sales
Sales volume of Crude oil - overseas *1 (Thousand KL)
Net sales
Sales volume of Purchased crude oil (Thousand KL)
Net sales
Sales volume of Natural gas -overseas *2 (Million M3)

Feb. 9*1 Amounts of overseas consolidated subsidiaries, Japex Garraf Ltd. and Japex (U.S.) Corp. for FY3/23, and Japex Garraf Ltd., Japex (U.S.) Corp. and JAPEX UK E&P Ltd. for FY3/24.
*2 Amounts of overseas consolidated subsidiaries, Japex (U.S.) Corp. for FY3/23, and Japex (U.S.) Corp. and JAPEX UK E&P Ltd. for FY 3/24.
*3 Domestic sales price average of crude oil referring to crude oil price (CIF)

Copyright © 2024 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

24Appendix

1. Net Sales – ②I/U
FY3/23 (a)Million Yen

3Q

1-3Q

FY3/24 (a)Full year

1Q

2Q

FY3/24 (f)
3Q

1-3Q

4Q

Full year (f)Nov. 10

Feb. 964,968

141,748

213,657

36,39838,28836,027110,71459,282

168,005

169,996

245

692

989

202

197

246

646

309

961

955

26,65962,62597,36020,20016,18919,35155,74125,25680,95080,997

112

324

461

102

90

111

305

140

448

445

119

213

340

30

30

38

99

179

279

279

21,391

34,87751,572

1,498

4,551

4,143

10,193

18,384

28,61728,578

693

2,146

3,005

774

1,171

695

2,641

878

3,468

3,520

Net sales

15,59140,84358,735

13,137

16,113

10,80840,05913,27952,16053,338Others*

1,326

3,400

5,988

1,561

1,434

1,723

4,719

2,362

6,277

7,081

JLC Price (JPY / ton)

142,404

129,363

126,286

89,887

88,343

93,68590,63893,36789,90991,320

Sales
Sales volume of Natural gas – Japan (Million M3)
Net sales
Sales volume of Natural gas produced in Japan (Million M3)
Sales volume of LNG (Thousand ton)
Net sales
Sales volume of Electricity (Million kWh)

* Including net sales from commissioned transportation of natural gas and commissioned regasification of LNG

Copyright © 2024 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

25

Appendix

2. Financial Results
Million Yen

FY3/23 (a)3Q

Net sales

1-3Q

FY3/24 (a)Full year

1Q

2Q

FY3/24 (f)
3Q

1-3Q

4Q

Full year (f)Nov. 10

Feb. 9330,700

104,396

225,105

336,492

61,321

89,387

79,229229,938

100,761

325,400

E&P Business

21,76035,90256,063

10,72436,81125,304

72,841

24,426

94,172

97,267

Infrastructure/Utility Business

64,968

141,748

213,657

36,39838,28836,027110,71459,282

168,005

169,996

Others

17,66747,454

66,771

14,19914,286

17,897

46,383

17,052

63,221

63,435

Cost of sales

74,488161,216

240,380

40,812

66,591

59,789167,193

79,306

241,600

246,500

Gross profit

29,90763,888

96,111

20,50822,795

19,44062,745

21,45483,80084,200

860

2,000

2,885

255

726

1,035

2,018

2,181

4,700

4,200

Exploration expenses
SG&A expenses

9,609

23,145

31,139

7,349

6,470

7,037

20,8588,441

30,30029,300Operating profit

19,43838,74262,085

12,903

15,597

11,36639,868

10,831

48,80050,700Non-operation income (expense)(4,643)

19,136

21,044

5,315

5,318

(2,339)

8,294

105

8,200

8,400

342

749

1,173

520

464

559

1,544

255

1,400

1,800

Interest expenses

-

(3)

(5)

(24)

(34)

(161)

(220)

(479)

(1,000)(700)Dividend income

67

1,719

3,520

57

1,977

71

2,106

2,093

4,200

4,200

49

6,734

7,109

338

932

245

1,516

(916)

900

600

Interest income

Share of profit of entities accounted forusing equity method
Provision for overseas investment

(44)

(44)

(44)

(15)

0

(23)

(38)

138

(100)

100

Foreign exchange gains and loss

(4,312)

4,864

5,332

4,764

1,587

(3,103)

3,248

(648)

3,000

2,600

Other
Ordinary profit

(744)

5,117

3,958

(325)

390

72

136

(336)

(200)

(200)

14,79457,878

83,13018,21920,916

9,027

48,162

10,93757,00059,100Extraordinary income (loss)

(11)

(27)

(46)

(9)

(3)

(7)

(20)

(79)

(100)

(100)

Profit before income taxes

14,78357,851

83,084

18,20920,912

9,019

48,141

10,85856,90059,000

Income taxes

4,520

13,49015,102

4,335

4,757

476

9,569

2,430

9,600

12,000

Profit attributable to non-controlling interests(1,593)

1,074

587

874

1,384

(202)

2,056

(56)

2,300

2,000

Profit (loss) attributable to owners of parent

11,85643,286

67,394

12,99914,7708,745

36,5158,484

45,00045,000

Copyright © 2024 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

26

Appendix

3. Segment Profit
Million Yen

FY3/23 (a)3Q

FY3/24 (a)Full year

1-3Q

1Q

2Q

FY3/24 (f)
3Q

1-3Q

4Q

Full year(f)Nov. 10

Operating profit

Japan

Share of profit (loss) of entities
accounted for using equity
methodOperating profit

North America

Share of profit of entities
accounted for using equity
methodOperating profit (loss)

EuropeShare of profit (loss) of entities
accounted for using equity
methodOperating profit (loss)

Middle East

Share of profit (loss) of entities
accounted for using equity
methodOperating profit*1

OthersShare of profit (loss) of entities
accounted for using equity
methodAdjustments andEliminations*2
Amounts on consolidated
statement of income*3
*1
*2
*3

Operating profit (loss)

Feb. 919,702

42,391

68,855

13,732

12,608

9,612

35,954

11,89948,16447,853

124

440

326

136

50

(64)

123

34

276

157

2,370

2,918

4,210

1,952

3,536

3,440

8,929

1,273

10,253

10,202

-

-

-

-

-

-

-

-

-

-

(29)

(118)

(170)

(111)

(137)

(111)

(360)

576

(984)

216

-

-

-

-

-

(61)

(61)

(609)

(728)

(670)

(8)

1,125

(112)

447

2,672

1,110

4,230

835

4,773

5,065

(2)

(9)

(11)

(1)

(3)

7

2

0

(4)

2

-

-

-

-

-

-

-

-

-

-

(72)

6,303

6,793

202

884

364

1,451

(341)

1,354

1,110

(2,596)(7,574)(10,697)(3,118)(3,082)(2,684)(8,885)(3,752)(13,406)(12,638)

19,43838,74262,085

12,903

15,597

11,36639,868

10,831

48,80050,700Include the Sakhalin Oil and Gas Development Co., Ltd., Energi Mega Pratama Inc., and others
Mainly intersegment elimination and corporate expense.
Furthermore, corporate expense represents mainly general and administrative expenses and experiment and research expense that are not allocated to reporting segments.
Segment profit (loss) is reconciled to operating profit in the consolidated statements of income.

Copyright © 2024 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

27

Appendix

4. Price Assumptions for FY3/24 Forecasts
Upper: from January 2022 to March 2023
Full year

Lower: from January 2023 to March 2024
Jan.-Mar.

Apr.-Jun.

Jul.-Sep.

Oct.-Dec.

Jan.-Mar.

FY3/23 (a)-101.55115.31105.9389.98

102.26

Previous (f)Nov. 10

-

85.17

81.77

85.00

85.00

84.35

Revised (f)Feb. 9-85.17*2

81.77*2

90.79*2

81.16

84.74

FY3/23 (a)94.41

108.65

91.76

82.85

-

94.42

Previous (f)Nov. 10

76.11

73.78

80.00

80.00

-

77.46

Revised (f)Feb. 976.11*2

73.78*2

82.49*270.00*2-

75.60

FY3/23 (a)-101,863

143,821

142,404

117,057

126,286

Previous (f)Nov. 10-88,287

89,11589,40091,23389,909

Revised (f)Feb. 9-89,887*2

88,343*2

93,68593,36791,320FY3/23 (a)-122.50133.58143.32133.39132.86

Previous (f)Nov. 10-134.36141.06140.00140.00139.51

Revised (f)Feb. 9-134.36*2

141.06*2

148.53*2

140.00141.42Market Price

Crude oil price (CIF) *1

WTI

JLC price

Exchange rate

USD/bbl

USD/bbl

JPY/Ton

JPY/USD*1 Domestic sales price average of crude oil referring to crude oil (CIF)*2 Actual

Copyright © 2024 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

28

Appendix

5. Sensitivities Analysis on FY3/24 Forecasts Basis
FY3/24
4Q
Assumptions

Impacts on profit（Million Yen）
Fluctuation
Operating profit

Profitattributable toowners of parent

Main factors for change
positive factor “+”/ negative factor “-”

Crude oil price

Crude oil price (CIF)
4Q:USD 81.16/bbl

Increase by
1USD/bbl

60

40+ Sales of oil and gas- Increase in LNG procurement cost

Exchange rate

JPY 140.00/USD

1 weaker JPY
against USD

50

20+ Sales of oil and gas- Increase in LNG procurement cost

【Assumptions】• Changes in equity method profit/loss are not included in the above amount.
• In addition to the impact of exchange rate fluctuations shown on the above, translation adjustments of foreign-currency-denominatedreceivables and payables also may occur.
• Actual profits are influenced by various other factors besides crude oil prices and exchange rates.

Copyright © 2024 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

29

Appendix

6. Business Overview ① E&P Field[3] Norway: Offshore Blocks

E&P Business site

[5] Russia: Sakhalin 1 Project[4] UK North Sea: Seagull Project[1] Iraq: Garraf Project[6] United States:
Tight Oil Development[A] Japan: Domestic oil and gas fields(10 sites in Hokkaido, Akita, Yamagata, and Niigata)

JAPEX Group E&P business base siteJapan

[2] Indonesia・Kangean ProjectOverseas

10 fields
6 projects

 JAPEX Group oil and gas E&P fields/projects (as of Jan., 2024)
No.

Oil and gas field/Project title (Operator)

Interest Share（JAPEX’s net）

Production type

Status

Production Volume*1

Differ by interest

Crude oil/natural gas

Production/
Development

Undisclosed

A

Japan: Domestic oil and gas fields(Total of 10 locations in Hokkaido, Akita, Yamagata, and Niigata)1

Iraq: Garraff Project (PETRONAS Carigali Iraq Holding B.V.)

30% (16.5%)

Crude oil

Production/
Development

Approx. 158,000bbl

2

Indonesia: Kangean Project (Kangean Energy Indonesia Ltd.)

100％ (25%)

Crude oil/natural gas

Production

Approx. 2,350,000m3(Approx. 14,304boed)

3

Norway: Offshore Blocks (Longboat JAPEX Norge AS*2)

Differ by interest

Crude oil/natural gas

Exploration/Production/
Development

Approx. 254boed

4UK North Sea: Seagull Project (BP Exploration Operating Company Ltd.)

15% (15％)

Crude oil/natural gas

Production/
Development

Undisclosed

5

Russia: Sakhalin-1 Project (Sakhalin-1 Limited Liability Company: S1LLC)

30% (4.59％)*3

Crude oil/natural gas

Production/
Development

Undisclosed

6

North America: Tight Oil Development (EOG Resources Inc., etc.)

Differ by interest

Crude oil/natural gas

Production/
Development

Undisclosed*1: Average daily Production for 3Q FY2023 (No.2, 3: Jan.-Sep. 2023, No.1: Apr.-Dec. 2023)*2: Company name was changed upon completion of capital participation (49.9% stake) in Jul. 2023
*3: Pursuant to Government of the Russian Federation order on November 2022,Sakhalin Oil and Gas Development Co., Ltd.(SODECO) was approved to subscribe for 30% equity of the S1LLC.

Copyright © 2024 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

30

Appendix

6. Business Overview ② I/U Field - Gas Supply
Features of JAPEX's domestic gas supply network

High-pressure gas pipeline network over 800 km total

2 LNG terminals for ocean-going carriers

Capable to supply from Sea of Japan and Pacific Ocean Domestic gas supplyDomestic produced gas and regasified LNG supply via pipelines
Receive, storage, regasify, and deliver LNG
LNG satellite system: tank trucks, domestic vessels
Third-party or consignment use of our gas pipelines and LNG terminals etc.

 Respond to diversification of domestic gas supplySupport fuel switching to natural gas from other fossil fuels
Propose and provide energy services in cooperation with city
gas suppliers LNG procurement
Procure competitive LNG with a combination of term and spot
contracts Overseas LNG supply infrastructure

Launch new projects or other process mainly in Southeast Asiawith stronger demands for gasOngoing feasibility study: Northern Vietnam LNG terminal project

Copyright © 2024 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

31

Appendix

6. Business Overview ③ I/U Field - Electricity[1] Abashiri Biomass
BIO
Power Plant No.2&3

JAPEX’s joining power plants are

8 sites

Total(Renewable energy 7 sites

Total output 1,389,800kW

Renewable energy 209,800kW)※ Total output represents gross plant output[2] Mega solar power generation
at JAPEX Hokkaido District OfficePV[3] Yufutsu Solar Power Plant

PV Power plants in development and operation (as of Jan., 2024)
No.

Name

Location

Type

Capacity
(kW)

Share

StatusA

Fukushima Natural Gas Power Plant

Shinchi Town,
Fukushima

Natural gas(LNG)

1,180,000

33%

In operation

1

Abashiri Biomass No.2&3 Power Plants

Abashiri City,
Hokkaido

Biomass(wood chip)

19,80033.8%

In operation

2

Mega solar power generation
at JAPEX Hokkaido District Office

Tomakomai City,
Hokkaido

PV

1,800

100%

In operation

3

Yufutsu Solar Power Plant

Tomakomai City,
HokkaidoPV13,00020%

In operation

4

Mitsuke PV Power Plant

Mitsuke City,
Niigata

PV

250

100%

In operation

5

Tahara Biomass Power Plant

Tahara City,
Aichi

Biomass(wood pellet)

50,000

39.9%

Under
construction

6

Ozu Biomass Power Plant

Ozu City,
Ehime

Biomass(wood pellet)

50,00035%

Underconstruction

7

Chofu Biomass Power Plant

Shimonoseki City,
Yamaguchi

Biomass(wood pellet)

74,950

39.9%

Under
construction

 Other renewable energy project

PHOTON Sustainable Solar Investment Limited Partnership(funding up to 10 billion yen in PV generation projects including
non-FIT projects; 50% of our investment ratio)[7] Chofu Biomass Power Plant

BIO

PV

LNG

[4] Mitsuke PV Power Plant[5] Tahara Biomass Power Plant

BIO

BIO
[6] Ozu Biomass Power Plant

Copyright © 2024 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

[A] Fukushima Natural Gas Power Plant

Gas power plant
Renewable power plant
Renewable power plant(under construction)

32

Appendix

6. Business Overview ④ CN Field Ongoing Carbon Neutral initiatives to promote/participate inJapan

Realize hub & cluster type CCS/CCUS model by FY2030

 Consideration in JAPEX Examination of CO2 storage capacity in our oil and gas fields, etc.
 Study of re-injection of associated CO2 from our oil and gas field
operations
 Feasibility study with companies/cross-industry
 Considering of possibility of a business that effectively utilizes CO2
in the Niigata area with Mitsubishi Gas Chemical (May 2021～)
 Feasibility study of CCUS project in Tomakomai area, Hokkaido with
Idemitsu and HEPCO (Jan 2023～)
 JAPEX, Idemitsu, and HEPCO commissioned a CCS Study inTomakomai Area as the “Business Feasibility Study on JapaneseAdvanced CCS Project” in FY2023 by JOGMEC (Jul 2023)
 JAPEX, MGC, TOHOKU-EPCO, HC and NRI commissioned a Study inEast-Niigata Area as the “Business Feasibility Study on JapaneseAdvanced CCS Project” in FY2023 by JOGMEC (Aug 2023)
 Agreed on Joint Study with Nippon Gas Line on domestic marinetransportation of liquefied CO2 and port developments (Nov 2023)
 Commencement of Joint Study with MGC, IHI, Mitsui & Co., and MOL
to establish ammonia supply base in Soma area, Fukushima
Prefecture (Jan 2024~)

Overseas

Early profit earning in advanced countries& consideration in emerging countries

 Consideration in JAPEX
 Consideration for participation in CCS/CCUS projects in North
America, Europe and other systematically advanced areas
 Feasibility study on companies/cross-industry
 Joint feasibility study of a CCUS project in Indonesia‘s Sukowati oilfield utilizing bilateral credits (with Pertamina Group and Lemigas)(Jun 2021～Jul 2023)
 Joint Study on CCS in Malaysia: Jointly conducted site surveys andtechnical studies with a view to implementing CO2 geological storage
with PETRONAS, JGC Global Corporation, and Kawasaki Kisen Kaisha(Jan 2022～)
 Agreed with JFE Steel Corporation to establish CCS value chain
originated from JAPAN in conjunction with the above CCS joint studyin Malaysia in FY2023 (Jun 2023)
 Signed a Memorandum of Understanding with SKK Migas forcooperation in realizing Hub & Cluster CCS/CCUS in Indonesia (Sep2023)
 Capital participation in Blue Spruce Operating LLC of the U.S. toparticipate in our first CCS business study project in advanced
overseas country (Oct 2023)
 Started CO2 injection testing at the Sukowati oil field in Indonesia
based on a joint study agreement with JOGMEC and the Pertamina
Group (Dec 2023～)

Common  Technical and other related study Study on technical issues of energy transportation infrastructure for the realization of a CN society with JFE Engineering

Copyright © 2024 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

33

Appendix

7. Integrated Report and IR-related Materials,etc.
Please visit our website for the integrated report and IR materials.
Integrated Report Integrated Reporthttps://www.japex.co.jp/en/ir/library/integratedreport/
The latest issue(Integrated Report 2023, published in October 2023)

is available directly via the following link

https://www.japex.co.jp/en/ir/uploads/pdf/JAPEX_IR2023_e.pdf

Disclosure Materials Archive Financial Results

https://www.japex.co.jp/en/ir/library/result/ Explanatory Materials

https://www.japex.co.jp/en/ir/library/explanatory/

 Securities Reporthttps://www.japex.co.jp/en/ir/library/report/

Performance information, etc.
 Financial highlights for 5 years* Past 10 years’ CVS data is also available Shareholder Returns (Dividends)

Copyright © 2024 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

https://www.japex.co.jp/en/ir/figure/https://www.japex.co.jp/ir/uploads/JAPEX_10yearFinancialData_e.xlsx

https://www.japex.co.jp/en/ir/stock/dividend/34

Appendix

8. Glossary Abbreviations
BOE(D)

Barrels of Oil Equivalent (per Day)

CCS

Carbon dioxide Capture and Storage

CCUS

Carbon dioxide Capture, Utilization and Storage

CIF

Cost, Insurance and FreightCN

Carbon neutral

E&P

Exploration and Production

I/U

Infrastructure & Utility

JCC

Japan Crude Cocktail

WTIWest Texas Intermediate Main Subsidiaries and Affiliates
Japex Garraf

Japex Garraf Ltd.

Iraq / Garraf Project

EMPI

Energi Mega Pratama Inc.

Indonesia / Kangean Project

SODECO

Sakhalin Oil & Gas Development Co., Ltd.

Russia / Sakhalin-1 Project

LBJ

Longboat JAPEX Norge AS

Norway: Offshore Blocks

FGP

Fukushima Gas Power Co., Ltd.

Natural gas-fired electric power generation Business

Copyright © 2024 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

35

Cautionary Statement
This document contains future outlooks such as plans, forecasts, strategies, and others which are nothistorical facts and these are made by the management’s judgement based on the obtainable
information at the time of the disclosure. Actual results may significantly differ from those future
outlooks 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 (FY3/24, for instance, means 12 months ending March 31, 2024)
・Figures in parentheses in "Operating profit," "Ordinary profit," " Share of profit of entities accounted for using equity
method," and " Profit attributable to owners of parent" represent losses in each category.
Any inquiries about the information contained herein or other Investor Relations questions are requested to be directed to:
Corporate Communication Office, Japan Petroleum Exploration Co., Ltd. (JAPEX)Tokyo, JAPAN TEL: +81-3-6268-7111

Copyright © 2024 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

36

Copyright © 2024 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

37