Consolidated Financial Results for the Three Months Ended June 30, 2023
<under Japanese GAAP>
August 9, 2023

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:
August 10, 2023
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 three months ended June 30, 2023
(April 1, 2023 – June 30, 2023)(Percentages indicate year-on-year changes.)
Consolidated operating results (cumulative)
Net sales

Three months ended

Operating profit

Millions of yen% Millions of yen% Millions of yen

61,321

4.6

12,903June 30, 2022

58,61717.0

9,810 188.5

Note: Comprehensive income: Three months ended June 30, 2023:
Three months ended June 30, 2022:

Three months ended

31.5

18,219% Millions of yen(19.4)

12,99922,600 115.4

21,833 million yen
19,821 million yen

Basic earnings per share

Profit attributable toowners of parent

Ordinary profit

June 30, 2023%
(16.9)

15,640 120.1(10.2 %)
(11.2 %)

Diluted earnings per share

Yen

Yen

June 30, 2023

239.73–June 30, 2022

283.66

–

(2)

Yes

Consolidated financial position
Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen%

As of June 30, 2023

556,244466,803

78.1

As of March 31, 2023

568,180

457,169

74.9

Reference: Equity

2.

As of June 30, 2023: 434,574 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)

First quarter
Yen

Second quarter
Yen

Annual dividends
Third quarter
Yen

Fiscal year-end
Yen–

150.00–220.00370.00100.00–100.00200.00

AnnualYen–

Note: Revisions to the latest forecasts of cash dividends: None

-1-

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

306,100(9.0)

38,900(37.3)

44,800(46.1)

34,000(49.6)

627.00Note: Revisions to the consolidated financial forecasts most recently announced: Yes

*
(1)

Notes
Changes in significant subsidiaries during the three 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 June 30, 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 June 30, 2023
73,730 shares
As of March 31, 2023
73,730 sharesc. Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended June 30, 2023
54,226,346 shares
Three months ended June 30, 2022
55,136,725 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. Consolidated financial statements and significant notes thereto” onpage 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 three months ended June30, 2023” on page 4 of the attached material to the quarterly financial results report.

-2-

(Attached Material)
1. Qualitative information regarding settlement of accounts for the three months ended June 30,2023(1) Explanation of operating results
During the three months ended June 30, 2023, net sales was ¥61,321 million, an increase of ¥2,704 million(+4.6%) year on year. Gross profit was ¥20,508 million, an increase of ¥3,812 million (+22.8%) year on
year. Main factors behind the year-on-year increase for net sales and increase for gross profit include a risein the selling price of natural gas in Japan as a result of the increase in LNG price, etc., and the growth ofsales volume for crude oil in North America.
Exploration expenses was ¥255 million, an increase of ¥158 million (+162.0%) year on year. Selling,
general and administrative expenses was ¥7,349 million, an increase of ¥561 million (+8.3%) year on year.
As a result, operating profit was ¥12,903 million, an increase of ¥3,093 million (+31.5%) year on year.
Ordinary profit was ¥18,219 million, a decrease of ¥4,381 million (-19.4%) 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 ¥4,389 million year on year to ¥18,209 million. Profit attributableto owners of parent decreased by ¥2,640 million year on year to ¥12,999 million.
Below is a breakdown of net sales.
(i) E&P BusinessNet sales from the E&P Business came to ¥10,724 million, an increase of ¥3,458 million (+47.6%)
year on year, mainly due to the growth of sales volume for crude oil in North America.
(ii) Infrastructure/Utility BusinessNet sales from the Infrastructure/Utility Business came to ¥36,398 million, an increase of ¥388 million(+1.1%) year on year. This was mainly the result of a rise in the selling prices due to the increase in
LNG price, etc., and the growth of sales volume for electricity, despite the decreased sales volume fornatural gas (Japan) 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 ¥14,199 million, a decrease of ¥1,142 million (-7.4%) year on year.

(2) Explanation of financial position
Total assets at the end of the first quarter decreased by ¥11,935 million from the previous fiscal year-end to¥556,244 million.
Current assets decreased by ¥42,431 million from the previous fiscal year-end. This was mainly due todecreases in cash and deposits and notes and accounts receivable - trade, and contract assets. Non-current
assets increased by ¥30,496 million from the previous fiscal year-end. This was mainly due to therecording of wells, etc. under property, plant and equipment, a rise in market values of investment
securities, and an increase in recoverable accounts included in other under investments and other assets.
Liabilities decreased by ¥21,570 million from the previous fiscal year-end to ¥89,440 million.
Current liabilities decreased by ¥25,257 million from the previous fiscal year-end. This was due mainly toa decrease in notes and accounts payable - trade. Non-current liabilities increased by ¥3,686 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 ¥9,634 million from the previous fiscal year-end to ¥466,803 million. The main
factor was an increase 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 May 12, 2023.
Please refer to the “Notice of Financial Forecasts Revision” disclosed on August 9, 2023, the same day ofthis report.

-4-

2. Consolidated financial statements and significant notes thereto(1) Consolidated quarterly balance sheet(Millions of yen)

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-

As of June 30, 2023

191,956

177,215

48,47429,784

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

3,000
2,438
106
18,8488,019(53)239,359

118,4115,569

129,671
5,471

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

127,234
54,912(47)(357)
181,741
316,884
556,244(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 June 30, 2023

26,4899,333
2,331
26,09664,250

5,877
5,935
2,378
24,801
38,993

20,461
3,428
620
20,0432,206
46,759111,010

23,641
3,432
656
20,1582,558
50,44689,44014,288362,989(136)
377,141

14,288363,971(136)
378,124

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

54,257
(555)
2,240
508
56,45032,229466,803556,244(2) Consolidated quarterly statement of income and Consolidated quarterly statement ofcomprehensive income
Consolidated quarterly statement of income
Three months ended
June 30, 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
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)Three months ended
June 30, 2023

58,61741,92016,696
97
6,788
9,810

61,32140,812
20,508255
7,349
12,903

149
47

520
57

5,988

338

6,748
82
13,015

4,764
116
5,797

1
76
25
122
225
22,600

24
78
233
145
481
18,219

–
–

0
0

1
1
22,5985,304
17,293
1,653
15,6409918,2094,335
13,874874
12,999

Consolidated quarterly statement of comprehensive income(Millions of yen)Three months ended
June 30, 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-

Three months ended
June 30, 2023

17,293

13,874

926
94
1,107
(58)

7,930
285
(231)
(81)

458

57

2,527
19,821

7,959
21,833

18,167

20,9591,653

874

(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)
No item to report.

(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.

(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)because such variance is expected to be almost completely eliminated by the end of 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.

-9-3. Supplemental information
Status of production and sales(1) Production
Three months ended
June 30, 2022
(April 1, 2022 –June 30, 2022)

Three months ended
June 30, 2023
(April 1, 2023 –June 30, 2023)(Reference)
Fiscal year ended
March 31, 2023
(April 1, 2022 – March 31, 2023)

143,592

268,226

751,616(83,395)(215,320)(518,697)

129,753

133,585

523,998(1,020)(10,780)(14,136)

LNG (t)249–
Electricity(thousand
546,523
657,182
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.

1,258

E&P
Business

Crude oil (kL)Natural gas(thousand m3)

Infrastructure/Utility
Business- 10 -

2,509,471

(2) Sales
Three months ended
June 30, 2022
(April 1, 2022 –June 30, 2022)
Net sales
Sales volume(Millions of yen)

E&P
Business(Millions of yen)

79,277

7,251

152,850

10,608695,633

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

732

14

10,336116

11,494360

7,266

10,72456,063Natural gas(Japan)(thousand m3)

231,801

17,923202,037

20,200989,051

97,360

LNG (t)49,551

6,062

30,995

1,498

340,503

51,572

Electricity(thousand kWh)665,930

10,986774,913

13,1373,005,864

58,735

Others

1,037

1,561

5,988

36,00936,398

213,657

1,173

1,329

7,750

13,757

12,112

56,573

410

756

2,447

Subtotal

15,341

14,19966,771

Total

58,61761,321

336,492

Subtotal

Otherbusinesses(Millions of yen)

(Reference)
Fiscal year ended
March 31, 2023
(April 1, 2022 – March 31, 2023)
Net sales
Sales volume

Crude oil (kL)Subtotal

Infrastructure/Utility
BusinessThree months ended
June 30, 2023
(April 1, 2023 –June 30, 2023)
Net sales
Sales volume

Contract
services
Oil products/merchandise
Others

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 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.

- 11 -