Consolidated Financial Results for the Nine Months Ended December 31, 2023
<under Japanese GAAP>
February 9, 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: FUJITA Masahiro, Representative Director and President
Inquiries:
MATSUMOTO Akinori, General Manager, Corporate Communication OfficeTelephone:+81-3-6268-7111 (from overseas)
Scheduled date to commence dividend payments:–
Scheduled date to file Quarterly Report:
February 9, 2024
Presentation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results presentation meeting (for institutional investors and analysts):
1.
(1)(Millions of yen with fractional amounts discarded, unless otherwise noted)

Consolidated financial results for the nine months ended December 31, 2023
(April 1, 2023 – December 31, 2023)(Percentages indicate year-on-year changes.)
Consolidated operating results (cumulative)
Net sales

Nine months ended

Millions of yen

December 31, 2023
December 31, 2022

Operating profit% Millions of yen

229,938

2.1

39,8682.9

225,105

31.4

38,742 232.6

Basic earnings per share

48,162

67,257 million yen
47,880 million yen% Millions of yen%(16.8)

36,515(15.6)

57,878 135.9

43,286–(40.5%)(–%)

Diluted earnings per share

Nine months ended

Yen

Yen

December 31, 2023

673.93–

December 31, 2022

793.00–Consolidated financial position
Total assets

Reference: Equity

Net assets
Millions of yen%

601,935

502,68378.0

457,16974.9

568,180

As of December 31, 2023: 469,273 million yen

As of March 31, 2023: 425,632 million yen

Cash dividends

Fiscal year ended
March 31, 2023
Fiscal year ending
March 31, 2024
Fiscal year ending
March 31, 2024
(Forecasts)

Equity ratio

Millions of yen
As of December 31,
2023
As of March 31, 2023

2.

Profit attributable toowners of parent

Ordinary profit% Millions of yen

Note: Comprehensive income: Nine months ended December 31, 2023:
Nine months ended December 31, 2022:

(2)

Yes

First quarter
Yen

Second quarter
Yen

Annual dividends
Third quarter
Yen

Fiscal year-end
Yen–

150.00–220.00370.00–125.00–125.00250.00Note: Revisions to the latest forecasts of cash dividends: None

-1-

AnnualYen

3.

Consolidated financial forecasts for the fiscal year ending March 31, 2024 (April 1, 2023 – March 31, 2024)(Percentages indicate year-on-year changes.)

Net sales

Fiscal year ending
March 31, 2024

Operating profit

Ordinary profit

Profit attributable Basic earnings pershare
to owners of parent

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

330,700(1.7)

50,700(18.3)

59,100(28.9)

45,000(33.2)

833.06

Note: Revisions to the consolidated financial forecasts most recently announced: Yes

*
(1)

Notes
Changes in significant subsidiaries during the nine months under review (changes in specified subsidiaries
resulting in the change in scope of consolidation): 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 December 31, 2023
54,300,076 shares
As of March 31, 2023
54,300,076 sharesb. Number of treasury shares at the end of the period
As of December 31, 2023
576,053 shares
As of March 31, 2023
73,730 sharesc. Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended December 31, 2023
54,183,142 shares
Nine months ended December 31, 2022
54,586,057 shares

Note: For details, please refer to “(3) Notes to quarterly consolidated financial statements (Application of specific accounting for
preparing quarterly consolidated financial statements)” of “2. Quarterly consolidated financial statements and significant notes
thereto” on page 9 of the attached material.

* Quarterly financial results reports are exempt from quarterly review conducted by certified public
accountants or an audit corporation.
* 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. Qualitative information regarding settlement of accounts for the nine months ended
December 31, 2023” on page 4 of the attached material to the quarterly financial results report.

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(Attached Material)
1. Qualitative information regarding settlement of accounts for the nine months ended December 31,
2023(1) Explanation of operating results
During the nine months ended December 31, 2023, net sales was ¥229,938 million, an increase of ¥4,833
million (+2.1%) year on year. Gross profit was ¥62,745 million, a decrease of ¥1,143 million (-1.8%) year
on year. Main factors behind the year-on-year increase for net sales and decrease for gross profit include a
decrease in the selling prices of crude oil, natural gas, and electricity due to the calming of the market
prices of crude oil and others compared to the same period of the previous fiscal year, despite the growthof sales volume for crude oil in North America and the Middle East.
Exploration expenses was ¥2,018 million, an increase of ¥17 million (+0.9%) year on year. Selling, generaland administrative expenses was ¥20,858 million, a decrease of ¥2,287 million (-9.9%) year on year. As aresult, operating profit was ¥39,868 million, an increase of ¥1,125 million (+2.9%) year on year.
Ordinary profit was ¥48,162 million, a decrease of ¥9,716 million (-16.8%) year on year, due mainly todecreases in share of profit of entities accounted for using equity method and foreign exchange gains.
Profit before income taxes decreased by ¥9,710 million year on year to ¥48,141 million. Profit attributableto owners of parent decreased by ¥6,771 million year on year to ¥36,515 million.
Below is a breakdown of net sales.
(i) E&P BusinessNet sales from the E&P Business came to ¥72,841 million, an increase of ¥36,938 million (+102.9%)
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 ¥110,714 million, a decrease of ¥31,034
million (-21.9%) year on year. This was mainly the result of a decrease in the selling prices following
the calming in the market prices for crude oil and others, and decreased sales volumes for natural gas
and 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 ¥46,383 million, a decrease of ¥1,070 million (-2.3%) year on year.

(2) Explanation of financial position
Total assets at the end of the third quarter increased by ¥33,755 million from the previous fiscal year-end
to ¥601,935 million.
Current assets decreased by ¥32,578 million from the previous fiscal year-end. This was mainly due todecreases in cash and deposits, and raw materials and supplies. Non-current assets increased by ¥66,333
million from the previous fiscal year-end. This was mainly due to an increase in property, plant andequipment owing to the recording of wells, etc., and an increase in investment securities owing to a rise in
their market values.
Liabilities decreased by ¥11,759 million from the previous fiscal year-end to ¥99,251 million.
Current liabilities decreased by ¥23,370 million from the previous fiscal year-end. This was due mainly toa decrease in notes and accounts payable - trade. Non-current liabilities increased by ¥11,611 million fromthe previous fiscal year-end. This was mainly due to an increase in deferred tax liabilities resulting fromthe rise in market values of investment securities and other factors.
Net assets increased by ¥45,514 million from the previous fiscal year-end to ¥502,683 million. The main
factors were increases in retained earnings and in valuation difference on available-for-sale securities.

-3-(3) Explanation of consolidated financial forecasts and other forward-looking statements
The consolidated financial forecasts for the fiscal year ending March 31, 2024 have been revised from theforecasts announced on November 10, 2023.
Please refer to the “Notice of Financial Forecasts Revision” disclosed on February 9, 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, 2023
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
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-5-(Millions of yen)
As of December 31, 2023

191,956

166,668

48,47450,969

3,000
2,216
11
21,613
14,574(54)281,791

3,000
2,786
211
17,1798,450(54)249,212

118,411
5,569

157,466
5,478

115,940
46,855(47)(341)
162,407286,388568,180

149,089
41,116(47)(380)
189,777
352,722
601,935

(Millions of yen)
As of March 31, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade
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-6-

As of December 31, 2023

26,4899,333
2,331
26,09664,25010,451
7,508
1,390
21,53040,88020,461
3,428
620
20,0432,206
46,759111,01028,5663,414
291
21,5494,549
58,371
99,251

14,288362,989(136)
377,141

14,288
380,700(2,893)392,095

46,324
(699)
2,275
590
48,491
31,536457,169
568,180

67,160(2,214)
11,811
419
77,17733,410502,683
601,935

(2)Quarterly consolidated statement of income and Quarterly consolidated statement ofcomprehensive income
Quarterly consolidated statement of income
Nine months ended
December 31, 2022

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
Gain on derivatives
Other
Total non-operating income
Non-operating expenses
Interest expenses
Commitment fees
Provision 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-7-(Millions of yen)

Nine months ended
December 31, 2023

225,105
161,216
63,8882,000
23,14538,742229,938
167,193
62,7452,018
20,85839,868

749
1,719

1,544
2,106

6,734

1,516

4,864
6,082
271
20,422

3,248
–
823
9,239

3
235
576
469
1,285
57,878

220
240
217
267
945
48,162

0
0

0
0

27
27
57,851
13,49044,361
1,074
43,28621
21
48,141
9,569
38,572
2,056
36,515

Quarterly consolidated statement of comprehensive income(Millions of yen)

Nine months ended
December 31, 2022
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-8-

Nine months ended
December 31, 2023

44,361

38,572(2,142)
85
4,943
(176)

20,833(1,711)
9,759
(171)

809

(24)

3,519
47,88028,68567,25746,806

65,201

1,073

2,055

(3)

Notes to quarterly consolidated financial statements(Notes on premise of going concern)

No item to report.

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

At the Board of Directors meeting held on November 10, 2023, JAPEX made a resolution concerning the
repurchase of own shares, and as of December 31, 2023, it acquired 510,800 treasury shares.
Accordingly, over the nine months ended December 31, 2023, treasury shares increased by ¥2,772 million
to stand at ¥2,893 million as of December 31, 2023.

(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, Abashiri Biomass Power 3 LLC., an affiliate of JAPEX, became an equity
method affiliate of JAPEX due to its increased material significance.
Effective the second quarter, Longboat JAPEX Norge AS became an equity method affiliate of JAPEX
because JAPEX acquired its shares.
Effective the third quarter, Blue Spruce Operating LLC became an equity method affiliate of JAPEX
because JAPEX acquired its proprietary equity.

(Application of 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 third 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.

-9-3. Supplemental information
Status of production and sales(1)

Production
Nine months ended
December 31, 2022
(April 1, 2022 –December 31, 2022)
Crude oil (kL)E&P Business
Natural gas(thousand m3)

Nine months ended
December 31, 2023
(April 1, 2023 –December 31, 2023)(Reference)
Fiscal year ended
March 31, 2023
(April 1, 2022 –March 31, 2023)

513,632

820,921751,616(340,781)(652,620)(518,697)

377,860

393,415

523,998(6,800)(45,925)(14,136)

LNG (t)1,258–
Infrastructure/
Utility Business Electricity
1,783,118
2,284,202(thousand kWh)
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.

- 10 -

1,258
2,509,471

(2)

Sales

E&P Business

Nine months ended
December 31, 2022
(April 1, 2022 –December 31, 2022)

Nine months ended
December 31, 2023
(April 1, 2023 –December 31, 2023)

Sales
volumeSales
volumeNet sales(Millions of yen)

Crude oil (kL)402,80735,672

1,000,433

72,350695,633

55,703Natural gas(overseas)(thousand m3)

5,260

230

42,723490

11,494360

Subtotal

35,902

72,841

56,063Natural gas(Japan)(thousand m3)

692,086

62,625646,318

55,741

989,051

97,360

LNG (t)213,137

34,877

99,611

10,193

340,503

51,572

2,146,280

40,8432,641,776

40,0593,005,864

58,735

Infrastructure/
Utility Business Electricity(thousand kWh)
Others

3,400

4,719

5,988

141,748

110,714

213,657

Contract
services

6,121

4,837

7,750

Oil products/
merchandise

39,83539,02856,573

Others

1,496

2,517

2,447

Subtotal

47,454

46,383

66,771

Total

225,105

229,938

336,492

Subtotal

Other
Businesses

Net sales(Millions of yen)

(Reference)
Fiscal year ended
March 31, 2023
(April 1, 2022 –March 31, 2023)
Sales
Net sales(Millions of yen)volumeNotes: 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 a pipeline network.
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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