Note: The following is an English translation of the Japanese-language original

November 10, 2022
Company Name:
Securities Code:
Representative:
Inquiries:
TEL:

Japan Petroleum Exploration Co., Ltd. (JAPEX)
1662 (Prime Market of the Tokyo Stock Exchange)
FUJITA Masahiro, Representative Director and President
Corporate Communication Office+81-3-6268-7110

Notice of Financial Forecasts Revision, Recording of Non-operating Income,Interim Dividend Payout, and Dividend Forecast Revision
Japan Petroleum Exploration Co., Ltd. (JAPEX) hereby revised its consolidated financial forecasts for thefiscal year ending March 31, 2023, which was disclosed on August 9, 2022, based on our recent business trends
and performance. Also, we have recorded non-operating income in the second quarter, from July 1, 2022 toSeptember 30, 2022.
In addition, at the meeting of the Board of Directors held today, we resolved to pay an interim dividend witha record date of September 30, 2022, and revised the year-end dividend forecast accordingly.

1. Financial Forecasts Revision(1) Revision to consolidated forecasts for FY2023/3 (April 1, 2022 - March 31, 2023)
ProfitNet sales
OperatingOrdinaryattributableprofitprofitto owners ofparent
Previous forecasts (A)Revised forecasts (B)Difference in amount (B - A)
Rate of change (%)(Reference) FY 2022/3(Millions of yen)

275,755
304,563
28,807
10.4
249,140(Millions of yen)

39,70545,242
5,536
13.9
19,809(Millions of yen)

50,98866,951
15,962
31.3
43,674

Note: FY=Fiscal Year (FY2023/3, for instance, means 12 months ending March 31, 2023)(Millions of yen)

40,00753,00012,99232.5(30,988)

Net incomeper share(Yen)734.79972.52(545.64)(2) Reasons of revision
Compared to the previous forecast (issued on August 9, 2012), net sales and operating income are expected
to increase, mainly due to expected increases in sales prices of natural gas and electricity.
In addition, ordinary income and net income attributable to shareholders of the parent company areexpected to increase, mainly due to an increase in foreign exchange gains and a valuation gain on LNG
transactions, in addition to the above.

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(3) Reference:[Crude Oil Price (CIF)]
Previous(USD/bbl)

RevisedApr. 2022 to Jun. 2022 (average of actual)101.55 Apr. 2022 to Sep. 2022 (average of actual)107.25

Jul. 2022 to Sep. 2022 (forecast)

100.00 Oct. 2022 to Mar. 2023 (forecast)
90.00

80.00

Oct. 2022 to Mar. 2023 (forecast)[Exchange Rate]
Previous
Apr. 2022 to Jun. 2022 (average of actual)
Jul. 2022 to Mar. 2023 (forecast)(JPY/USD)

Revised122.50 Apr. 2022 to Sep. 2022 (average of actual)
120.00 Oct. 2022 to Mar. 2023 (forecast)

127.44130.00Note) The aforementioned forecasts are based on the current available information and the actual performances and other results
may differ materially due to various factors in the future.

2. Recording of Non-Operating Income(1) Foreign exchange gains
In the second quarter of the fiscal year ending March 31, 2023, foreign exchange gains of 2,428 million yen
were recorded as non-operating income. This was mainly due to the revaluation of foreign currencydenominated assets and liabilities holding by the JAPEX Group, by the exchange rate at the end of thequarter.
As a result, foreign exchange gains of 9,176 million yen were recorded as non-operating income for the sixmonths ended in September 30, 2022.
(2) Gain on valuation of derivatives
In the second quarter of the fiscal year ending March 31, 2023, we recorded a gain on valuation ofderivatives of 6,446 million yen as non-operating income. This was the result of a gain or loss arising from“book-out transaction” made for a part of the LNG procured under a medium- to long-term contract, which
is a transaction to sell back commodity at an agreed market price without making physical exchange, that ismarked-to-market at the end of the quarter.

3. Payment of Interim Dividend and Revision of Year-end Dividend Forecast(1) Interim DividendRecord Date
Dividend per ShareTotal Dividend Payment
Effective Date
Dividend Source

Determined Dividend

September 30, 2022
150.00 yen
8,144 million yen
December 12, 2022
Retained Earnings

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Latest Dividend
Forecast (disclosed onAugust 9,2022)

September 30, 2022
110.00 yen-Previous Interim
Dividend (Six months
ended September30,2021)

September 30, 2021
25.00 yen
1,428 million yen
December 13, 2021
Retained Earnings

(2) Details of Revision
2nd quarter-end

Dividend per Share (Yen)
Year-end

110.00150.0025.00

Previous forecasts (on August 9 , 2022)
Revised forecasts
Actual dividends for FY2023/3
Actual dividends for FY2022/3

110.00150.00
25.00-

Annual total

220.00300.0050.00-(3) Reasons of revision
Our basic policy for profit distribution is to pay dividends in line with business results for each fiscal year,with a target consolidated dividend payout ratio of 30%. Based on this policy, we have revised our year-end
dividends forecasts to be increased to 150 yen per share and annual total dividends to 300 yen, in conjunction
with the revision of the consolidated earnings forecasts for the fiscal year ending March 31, 2023 disclosed
today.

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