Consolidated Financial Results for the Three Months Ended June 30, 2024
<under Japanese GAAP>
August 8, 2024

Note: The following report is a summary of the Japanese-language original.

Company name: Japan Petroleum Exploration Co., Ltd.
Listing:
Prime Market, Tokyo Stock Exchange
Securities code: 1662
URL:
https://www.japex.co.jp/en/
Representative: YAMASHITA Michiro, Representative Director and President
Inquiries:
MATSUMOTO Akinori, General Manager, Corporate Communication OfficeTelephone:+81-3-6268-7111 (from overseas)
Scheduled date to commence dividend payments:–
Presentation of supplementary material on financial results:
Yes
Holding of financial results presentation meeting (for institutional investors and analysts): Yes
1.
(1)(Millions of yen with fractional amounts discarded, unless otherwise noted)

Consolidated financial results for the three months ended June 30, 2024
(April 1, 2024 – June 30, 2024)
Consolidated operating results (cumulative)(Percentages indicate year-on-year changes.)
Net sales

Three months ended

Millions of yen

Operating profit% Millions of yen

Profit attributable toowners of parent

Ordinary profit% Millions of yen% Millions of yen%

June 30, 2024

89,46545.9

12,9480.3

16,560(9.1)

11,493(11.6)

June 30, 2023

61,321

4.6

12,90331.5

18,219(19.4)

12,999(16.9)

Note: Comprehensive income: Three months ended June 30, 2024:
Three months ended June 30, 2023:

Basic earnings per share
Three months ended

15,535 million yen
21,833 million yen((28.8)%)(10.2%)

Diluted earnings per share

Yen

Yen

June 30, 2024

219.44–

June 30, 2023

239.73–(2)

Consolidated financial position
Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen%

As of June 30, 2024

687,110537,415

73.1

As of March 31, 2024

660,928

537,574

76.2

Reference: Equity

As of June 30, 2024: 502,531 million yen

As of March 31, 2024: 503,902 million yen

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2.

Cash dividends

Fiscal year ended
March 31, 2024
Fiscal year ending
March 31, 2025
Fiscal year ending
March 31, 2025
(Forecast)

Notes: 1.
2.

3.

First quarter
Yen

Second quarter
Yen

Annual dividends
Third quarter
Yen

Fiscal year-end
Yen–

125.00–175.00300.00125.00

–

25.00

–

AnnualYen–

Revisions to the latest forecasts of cash dividends: None
JAPEX’s Board of Directors resolved at a meeting held on May 14, 2024 to conduct a 5-for-1 stock split of shares of common
stock, with an effective date of October 1, 2024. The year-end dividend per share for the fiscal year ending March 31, 2025
(forecast) is stated after considering the effect of such the stock split, and the total annual dividend is expressed as “-.” If the stock
split is not considered, the year-end dividend for the fiscal year ending March 31, 2025 (forecast) will be 125.00 yen, and the total
annual dividend will be 250.00 yen.

Consolidated financial forecasts for the fiscal year ending March 31, 2025 (April 1, 2024 – March 31, 2025)(Percentages indicate year-on-year changes.)

Net sales

Fiscal year ending
March 31, 2025
Notes: 1.
2.

Operating profit

Ordinary profit

Profit attributable Basic earnings pershare
to owners of parent

Millionsof yen%Millionsof yen%Millionsof yen%Millionsof yen%Yen

358,400

10.0

53,800(2.6)

57,800(16.0)

44,000(18.0)

170.62

Revisions to the consolidated financial forecasts most recently announced: Yes
Basic earnings per share is calculated considering the effect of the stock split as noted in “2. Cash dividends.” Without considering
the stock split, basic earnings per share in the consolidated earnings forecast for the fiscal year ending March 31, 2025 is 853.11
yen.

*
(1)

Notes
Significant changes in the scope of consolidation during the three months under review: None

(2)

Application of specific accounting for preparing quarterly consolidated financial statements: Yes(3)

Changes in accounting policies, changes in accounting estimates, and restatementa. Changes in accounting policies due to revisions to accounting standards and other regulations: Noneb. Changes in accounting policies due to other reasons: Nonec. Changes in accounting estimates: None
d. Restatement: None(4)

Number of issued shares (common shares)
a. Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2024
54,300,076 shares
As of March 31, 2024
54,300,076 sharesb. Number of treasury shares at the end of the period
As of June 30, 2024
2,374,986 shares
As of March 31, 2024
1,438,286 sharesc. Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended June 30, 2024
52,379,084 shares
Three months ended June 30, 2023
54,226,346 shares

Note: For details, please refer to “(3) Notes to quarterly consolidated financial statements (Notes to specific accounting for preparing
quarterly consolidated financial statements)” of “2. Quarterly consolidated financial statements and significant notes thereto” onpage 10 of the attached material.

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* Review of the Japanese-language originals of the attached quarterly consolidated financial
statements by certified public accountants or an audit corporation: None
* Proper use of financial forecasts, and other special matters
The forward-looking statements, including the financial forecasts shown in this document are based on
information currently available to our company and on certain assumptions deemed to be reasonable. As
such, they do not constitute guarantees by our company of future performance. Actual performance and otherresults may differ materially from these forecasts due to various factors.
For the suppositions that form the assumptions for financial forecasts and cautions concerning the use
thereof, please refer to “(3) Explanation of consolidated financial forecasts and other forward-looking
statements” of “1. Overview of operating results and others” on page 5 of the attached material to thequarterly financial results report.

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(Attached Material)
1. Overview of operating results and others(1) Overview of operating results for the three months ended June 30, 2024
During the three months ended June 30, 2024, net sales was ¥89,465 million, an increase of ¥28,143
million (+45.9%) year on year. Gross profit was ¥22,278 million, an increase of ¥1,769 million (+8.6%)
year on year. Main factors behind the year-on-year increase for net sales and increase for gross profit
include the growth of sales volume for crude oil in North America and the Middle East.
Exploration expenses was ¥1,713 million, an increase of ¥1,457 million (+570.2%) year on year. Selling,
general and administrative expenses was ¥7,616 million, an increase of ¥266 million (+3.6%) year on year.
As a result, operating profit was ¥12,948 million, an increase of ¥45 million (+0.3%) year on year.
Ordinary profit was ¥16,560 million, a decrease of ¥1,658 million (-9.1%) year on year, due mainly to areversal from a share of profit of entities accounted for using equity method to a share of loss, and adecrease in foreign exchange gains.
Profit before income taxes decreased by ¥1,650 million year on year to ¥16,558 million. Profit attributableto owners of parent decreased by ¥1,505 million year on year to ¥11,493 million.
Below is a breakdown of net sales.
(i) E&P BusinessNet sales from the E&P Business came to ¥29,836 million, an increase of ¥19,111 million (+178.2%)
year on year, mainly due to the growth of sales volume for crude oil in North America and the Middle
East.
(ii) Infrastructure/Utility BusinessNet sales from the Infrastructure/Utility Business came to ¥43,749 million, an increase of ¥7,351
million (+20.2%) year on year. This was mainly the result of an increase in sales volume for LNG.
(iii) Other Businesses
Net sales from other businesses, such as the contract services (drilling and geological surveys, etc.),
sale of oil products, including liquefied petroleum gas (LPG), fuel oil and the like, as well as othersubcontracted tasks, came to ¥15,880 million, an increase of ¥1,681 million (+11.8%) year on year.

(2) Overview of financial position for the three months ended June 30, 2024
Total assets at the end of the first quarter increased by ¥26,181 million from the previous fiscal year-end to¥687,110 million.
Current assets decreased by ¥40,878 million from the previous fiscal year-end. This was mainly due to adecrease in cash and deposits. Non-current assets increased by ¥67,059 million from the previous fiscal
year-end. This was mainly due to an increase in property, plant and equipment owing to the recording ofwells, etc., and an increase in investment securities due to the purchase of investment securities.
Liabilities increased by ¥26,340 million from the previous fiscal year-end to ¥149,694 million.
Current liabilities increased by ¥25,806 million from the previous fiscal year-end. This was due mainly toincreases in notes and accounts payable - trade, and short-term borrowings. Non-current liabilities
increased by ¥533 million from the previous fiscal year-end. This was mainly due to an increase indeferred tax liabilities resulting from the rise in market values of investment securities and other factors.
Net assets decreased by ¥159 million from the previous fiscal year-end to ¥537,415 million. This was
mainly due to a decrease due to the purchase of treasury shares despite counteracting increases resulting
from the recording of retained earnings and foreign currency translation adjustment.

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(3)

Explanation of consolidated financial forecasts and other forward-looking statements
The consolidated financial forecasts for the fiscal year ending March 31, 2025 have been revised fromthe forecasts announced on May 14, 2024.
Please refer to the “Notice of Financial Forecasts Revision” disclosed on August 8, 2024, the same dayof this report.

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2. Quarterly consolidated financial statements and significant notes thereto(1) Quarterly consolidated balance sheet
As of March 31, 2024
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract
assetsSecurities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Wells, net
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Allowance for overseas investment loss
Total investments and other assets
Total non-current assets
Total assets-6-(Millions of yen)
As of June 30, 2024

169,997

130,744

41,61040,371

3,000
2,602
40
19,885
12,684(53)
249,768

3,000
3,799
142
17,687
13,198(54)
208,889

70,826
105,474
176,300
5,265

79,494
106,522
186,016
5,352

180,415
49,389(47)(163)
229,593411,160
660,928

239,629
47,433(47)(163)
286,851478,220
687,110(Millions of yen)
As of March 31, 2024
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Income taxes payable
Provisions
Other
Total current liabilities
Non-current liabilities
Deferred tax liabilities
Retirement benefit liability
Provisions
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-7-

As of June 30, 2024

9,520
–
5,309
286
33,97849,095

19,93620,0007,541
183
27,24074,902

41,7393,414
306
24,687
4,110
74,258123,354

43,0693,459
302
23,552
4,408
74,792
149,694

14,288397,846(8,094)
404,040

14,288400,078(14,343)
400,023

84,686
8,704
4,881
1,589
99,862
33,671
537,574
660,928

86,109
7,720
7,153
1,524
102,507
34,883
537,415
687,110

(2) Quarterly consolidated statement of income and Quarterly consolidated statement ofcomprehensive income
Quarterly consolidated statement of income
Three months ended
June 30, 2023
Net sales
Cost of sales
Gross profit
Exploration expenses
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodForeign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodProvision for loss on disaster
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent-8-(Millions of yen)Three months ended
June 30, 2024

61,32140,812
20,508255
7,349
12,90389,46567,187
22,2781,713
7,616
12,948

520
57

705
68

338

–

4,764
116
5,797

4,086
104
4,964

24

598

–

589

233
224
481
18,219–164
1,352
16,560

0
0

–
–

9
9
18,2094,335
13,874874
12,9991
1
16,5583,669
12,8891,395
11,493

Quarterly consolidated statement of comprehensive income(Millions of yen)Three months ended
June 30, 2023
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests-9-

Three months ended
June 30, 2024

13,874

12,889

7,930
285
(231)
(81)

1,421
(2,484)
2,424
(64)

57

1,349

7,959
21,833

2,646
15,535

20,95914,139

874

1,396

(3)

Notes to quarterly consolidated financial statements(Changes in the scope of consolidation or the scope of application of the equity method)
Significant changes in the scope of application of the equity method

Effective the first quarter, the silent partnership of which operator is Ozu Biomass Power Co., Ltd., anaffiliate of JAPEX, became an equity method affiliate due to the increased material significance. In
addition, Gulf Coast LNG Holdings LLC became an equity method affiliate because JAPEX acquired
interest in that company.

(Notes to specific accounting for preparing quarterly consolidated financial statements)
Deferral accounting of cost variance

Cost variance arising from seasonal changes in production level is deferred as current assets (other) andcurrent liabilities (other) because such variance is expected to be almost completely eliminated by the endof the cost accounting period.

Calculation of taxes

For the taxes, JAPEX and some of its consolidated subsidiaries compute first by reasonably estimating theeffective tax rate after applying tax effect accounting against profit before income taxes for the fiscal year
including the first quarter, and next by multiplying the quarterly profit before income taxes by such
estimated effective tax rate.
However, in cases where the calculation of taxes using such estimated effective tax rate yields a result thatis not reasonable to a significant extent, the effective statutory tax rate is used.
Note that income taxes - deferred is included in income taxes.

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(Notes to segment information, etc.)
I

Three months ended June 30, 2023
Information regarding net sales and profit (loss) by reportable segment(Millions of yen)Amount on
thequarterly
Adjustment
consolidated(Note) 1
statement ofincome(Note) 2

Reportable segment
North
AmericaJapan
Net sales
Net sales tooutsideclients
Intersegment
sales ortransfers

MiddleEast

EuropeOthers

Total

Total

54,673

5,744

–

903

61,321–

61,321–

61,321

–

–

–

–

–

–

–

–

–

Total

54,673

5,744

–

903

61,321–

61,321–

61,321

Segment profit(loss)

13,732

1,952

(111)

447

16,021–

16,021(3,118)12,903

Notes: 1. The segment profit (loss) adjustment of ¥(3,118) million includes intersegment eliminations of ¥0 million andcorporate expenses that are not allocated to any reportable segments of ¥(3,118) million. Corporate expenses aremainly general and administrative expenses and experimentation and research expenses, all of which are not
attributable to the reportable segments.
2. Segment profit (loss) was adjusted to operating profit in the quarterly consolidated statement of income.

II

Three months ended June 30, 2024
Information regarding net sales and profit (loss) by reportable segment(Millions of yen)Amount on
thequarterly
Adjustment
consolidated(Note) 1
statement ofincome(Note) 2

Reportable segment
Others

Total

Japan

North
America

EuropeMiddleEast

Total

64,34812,388645

12,08489,465–89,465–89,465

6

–

–

–

6

–

6

(6)

–

Total

64,354

12,388645

12,084

89,472–

89,472(6)

89,465

Segment profit(loss)

9,957

4,853

(275)

1,503

16,039–16,039(3,090)12,948Net sales
Net sales tooutsideclients
Intersegment
sales ortransfers

Notes: 1. The segment profit (loss) adjustment of ¥(3,090) million includes intersegment eliminations of ¥0 million andcorporate expenses that are not allocated to any reportable segments of ¥(3,091) million. Corporate expenses aremainly general and administrative expenses and experimentation and research expenses, all of which are not
attributable to the reportable segments.
2. Segment profit (loss) was adjusted to operating profit in the quarterly consolidated statement of income.

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(Notes on significant changes in the amount of shareholders’ equity)

JAPEX’s Board of Directors resolved at a meeting held on November 10, 2023 on matters related to therepurchase of own shares, and as of June 30, 2024, JAPEX had acquired 2,309,700 treasury shares.
Accordingly, over the three months ended June 30, 2024, treasury shares increased by ¥6,249 million to
stand at ¥14,343 million as of June 30, 2024.

(Notes on premise of going concern)
No item to report.

(Notes to quarterly consolidated statement of cash flows)

Quarterly consolidated statement of cash flows for the three months ended June 30, 2024 is not prepared.
Depreciation (including amortization related to intangible assets, etc. excluding goodwill) for the threemonths ended June 30, 2024 is as follows.
Three months ended June 30, 2023
(April 1, 2023 – June 30, 2023)
Depreciation

5,309- 12 -(Millions of yen)Three months ended June 30, 2024
(April 1, 2024 – June 30, 2024)
9,788

(Notes to significant subsequent events)(Business combination by acquisition)
JAPEX’s Executive Committee resolved on June 14, 2024 to purchase all the shares of Longboat JAPEX
Norge AS (“LJN”), which was then an equity-method affiliate of JAPEX, held by Longboat Energy plc(“LBE”) and making it a subsidiary. In addition, a share purchase agreement was concluded on the samedate, and on July 12, 2024, the purchase of the shares was completed.
1. Outline of business combination(1) Name of acquired company and details of its business
Name
Longboat JAPEX Norge AS
Details of business
Exploration, development and production of petroleum
resources in offshore Norway(2)

Reasons for acquisition of shares
In July 2023, JAPEX engaged in capital participation in LJN to lay the foundation for its businessexpansion in Norway. LJN is currently engaged in exploration and development in multiple licenseinterests in the Norwegian North Sea and the Norwegian Sea. In addition, the procedure to acquireinterests in production assets was completed in January 2024, and crude oil and natural gas
production from the assets has begun.
Following change in the management of LBE in May 2024, there has been a reconsideration of theNorwegian business policy, and as a result of discussions with LBE regarding the future
management policy for LJN, JAPEX decided to set its sights on further expanding its Norwegianbusiness by making LJN a subsidiary.

(3)

Date of business combination
July 1, 2024 (deemed acquisition date)(4)

Legal form of business combination
Share acquisition in consideration for cash

(5)

Name of company after combination
JAPEX Norge AS(6)Ratio of voting rights after acquisition
Ratio of voting rights held immediately before the date of business combination
Ratio of voting rights additionally acquired
Ratio of voting rights after acquisition(7)

Main grounds for determining the acquiring company
JAPEX is the acquiring company as it acquired the shares in consideration for cash.

2. Acquisition cost for the acquired company and breakdown by type of consideration
Consideration for Market value of shares held immediately before theacquisitionbusiness combination on the date of the businesscombination
Consideration for additional acquisition (cash)
Acquisition cost

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49.9%
50.1%
100.0%¥401 million¥403 million¥804 million

3. Supplemental information
Status of production and sales(1) Production
Three months ended
June 30, 2023
(April 1, 2023 –June 30, 2023)
Crude oil (kL)E&P Business
Natural gas(thousand m3)

Three months ended
June 30, 2024
(April 1, 2024 –June 30, 2024)(Reference)
Fiscal year ended
March 31, 2024
(April 1, 2023 –March 31, 2024)

268,226

382,714

1,143,923(215,320)(321,984)(911,914)

133,585

152,789554,757(10,780)(36,070)(70,533)

Infrastructure/
Electricity
657,182
525,465
Utility Business (thousand kWh)
Note: The figures in parentheses represent overseas production and are included in the total.

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3,085,392

(2) Sales

E&P Business

Three months ended
June 30, 2023
(April 1, 2023 –June 30, 2023)

Three months ended
June 30, 2024
(April 1, 2024 –June 30, 2024)

Sales
volumeSales
volumeNet sales(Millions of yen)

Crude oil (kL)152,850

10,608403,031

28,966

1,240,742

87,808Natural gas(overseas)(thousand m3)

10,336116

35,076869

65,950

1,002

Subtotal

10,72429,83688,810Natural gas(Japan)(thousand m3)

202,037

20,200195,913

16,778955,826

81,487

LNG (t)30,995

1,498

169,294

15,960275,149

30,190774,913

13,137579,923

9,585

3,548,750

53,272

Infrastructure/
Utility Business Electricity(thousand kWh)
Others

1,561

1,425

7,197

36,39843,749172,147

Contract
services

1,329

1,662

6,395

Oil products/
merchandise

12,112

13,60555,423

756

611

3,087

Subtotal

14,19915,88064,905

Total

61,321

89,465

325,863

Subtotal

Other
Businesses

Net sales(Millions of yen)

(Reference)
Fiscal year ended
March 31, 2024
(April 1, 2023 –March 31, 2024)
Sales
Net sales(Millions of yen)volumeOthers

Notes: 1. “Crude oil” includes crude oil that the JAPEX Group produced in oil fields and the crude oil purchased fromother companies.
2. “Natural gas (Japan)” of the Infrastructure/Utility Business refers to gas supplied in Japan via pipeline andcomprises the total of natural gas produced in Japan and regasified LNG. Natural gas (Japan) is classified underthe Infrastructure/Utility Business, since both natural gas produced in Japan and LNG vaporized gas are soldtogether by our company’s supply network, which consists of the natural gas fields in Japan and the LNG
terminals that vaporize gas linked by pipeline networks.
3. “Others” of the Infrastructure/Utility Business includes commissioned transportation of natural gas and contracted
vaporization of LNG used for power plant fuel, etc.
4. Under the Other Businesses, “Oil products/merchandise” includes liquefied petroleum gas (LPG), fuel oil, gas oiland kerosene, and “Others” includes other subcontracted tasks.

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