Japan Petroleum Exploration Co., Ltd. · TSE:1662
Japan Petroleum Exploration — FY2014 Earnings Presentation
33 slides from Japan Petroleum Exploration's earnings presentation, May 13, 2014
Slide 1: Presentation Meeting of Consolidated Financial Results FY2014
Note: The following report is an English translation of the Japanese-language original. Presentation Meeting of Consolidated Financial Results for the Fiscal Year Ended March 31, 2014 (FY2014) May 13 , 2014 Sapia Tower, Marunouchi Tokyo, Japan Japan Petroleum Exploration Co., Ltd.
Slide 2: Cautionary Statement
Cautionary Statement Any information contained herein with respect to JAPEX’s plans, estimates, strategies and other statements that are not historical facts are forward-looking statements about the future performance of JAPEX. Readers should be aware that actual results and events may differ substa
Slide 3: Contents
Contents １．Business Overview President Osamu Watanabe ２．Actual Results for FY2014 Executive Officer Michiro Yamashita ３．Estimates for FY2015 Executive Officer Michiro Yamashita 3
Slide 4: Business Overview
Business Overview President Osamu Watanabe 4
Slide 5: Trends in Crude Oil Price and Foreign Exchange Rate
Trends in Crude Oil Price and Foreign Exchange Rate $130 ¥130 $125 ¥125 $120 [foreign exchange rate: JP¥/US$] ¥120 $115 ¥115 crude oil price: US$/bbl $110 ¥110 $105 ¥105 $100 crude oil price US$/bbl（left axis） ¥100 $95 ¥95 $90 ¥90 $85 ¥85 $80 ¥80 exchange rate ¥/$（right axis） $75 ¥75 $70 ¥70 2011-03
Slide 6: Actual Results for FY2014 and Estimate for FY2015 (Highlight)
Actual Results for FY2014 and Estimate for FY2015 (Highlight) Billion ￥ 323.6 Billion ￥ ■ Actual results for FY2014 ( vs FY2013) 330.0 50.0 FY2013 FY2014 Net Sales (left axis) [ Billion ￥] change (a) (a) 300.0 45.0 Net Sales 231.0 276.5 +45.5 +20% 276.5 270.0 40.0 Operating income 13.9 24.6 +10.7 +7
Slide 7: Corporate Vision and Basic Strategies for JAPEX Expansion
Corporate Vision and Basic Strategies for JAPEX Expansion While positioning E&P business at the Company’s main activities, Japex to endeavor to increase business opportunities for realizing its expansion by: i) shifting E&P activities overseas, ii) strengthening investment in domestic natural gas an
Slide 8: Steady Progress of the Medium-Term Business Plan (FY2012-FY2016)
Steady Progress of the Medium-Term Business Plan （FY2012-FY2016） Domestic natural gas business E&P business Securing of natural gas resources Shift investment to overseas Decline in production volume of Overseas investment ratio: Yufutsu oil and gas field expanded to 70% from 30% Successes of
Slide 9: Production Volume and Proved Reserves
Production Volume and Proved Reserves (*) BOED: Barrels of Oil Equivalent per Day ◆Production volume in FY2014 : 48,000 BOED (*) ⇒Increased 32% YOY. Main reason was full year production of SODECO and Kangean TSB gas field. ◆Proved reserves at end of FY2014 : 305 million BOE ⇒Decreased 32% YOY. Main
Slide 10: CAPEX Plan for FY2015
CAPEX Plan for FY2015 ■CAPEX and Depreciation&amortization ■ Recoverable accounts (Payments and recovery) FY15 FY15 [Billion ¥] FY12 FY13 FY14 [Billion ¥] FY12 FY13 FY14 （e) （e) CAPEX 17.4 13.2 127.2 112.7 Payments 6.4 12.0 20.5 60.6 Depreciation and 23.9 16.2 15.5 14.0 Recovery - - 13.7 64.2 amorti
Slide 11: Timeline of Projects & Investment Scale
Timeline of Projects & Investment Scale ■Timeline 2015/3 2016/3 2017/3 2018/3 2019/3 2020/3 Canada ◆Commence Expand production (plan) Oil sand expansion project production (midst 2016) Canada Increase production gradually Natural gas（up-stream） Canada ◆FID（plan） ◆Commence LNG production LNG project
Slide 12: Domestic Exploration Plan for FY2015
Domestic Exploration Plan for FY2015 ● Drilling schedule for FY 2015 Total 1Q 2Q 3Q 4Q Depth 4 5 6 7 8 9 10 11 12 1 2 3 Akebono SK-6bH 5,800 m Fukumezawa SK-26DH 2,300 m (Tight oil development*) (Horizontal (Fracturing) Akebono SK-6bH (5,800m) Drilling) (*) CAPEX account ■ Geophysical prospecting su
Slide 13: Enforcement of Domestic Profit (1) Hokkaido Vision
Enforcement of Domestic Profit （1） Hokkaido Vision Continue long-term gas business in Hokkaido promoting the following trinity: Optimize operating costs at Yufutsu oil & gas field ⇒Reducing operating costs Pursue exploration and development potential ●Tomakomai Promoting E&P in Hokkaido ⇒Akebono SK-
Slide 14: Enforcement of Domestic Profit (2) Tight oil development
Enforcement of Domestic Profit （2） Tight oil development in Akita Prefecture Ayukawa oil & gas field： April 1, 2014- Started commercial production Akita at 35kl/d (220bbl/d） ⇒ striving to obtain knowledge about the tight formation in ● Ayukawa oil & gas field Tokyo Fukumezawa oil field： Late May, 20
Slide 15: Enforcement of Domestic Profit (3) Soma LNG receiving terminal
Enforcement of Domestic Profit （3） Soma LNG receiving terminal Canadian LNG to Japan ---- Building an integrated natural gas supply system Shale Gas/LNG Project North Montney area （Shale gas field） Yufutsu LNG receiving terminal Prince Rupert LNG liquifaction & shipment terminal Delivered to Japan i
Slide 16: Current Status of Overseas Business
Blocks owned by our consolidated subsidiaries or equity-method affiliates. Current Status of Overseas Business Greenland Kanumas Area (Exploration) ⑤ Canada Shale Gas/LNG ③Sakhalin 1 (production of natural gas/planning of LNG plant) UK (production&development) North Sea Block ④ Oil sands (Exploratio
Slide 17: Indonesia: Kangean Block
Current Status of Overseas Business ① Indonesia: Kangean Block West Kangean gas field Pagerungan Utara oil field Jakarta (Exploration) （Production suspended） Pagerungan gas field East Java gas pipeline (Production) Bali Island Sepanｊang Island oil field （Production suspended) to Surabaya TBS gas fie
Slide 18: Iraq: Garraf oil field
Current status of overseas business ② Iraq : Garraf oil field Project company Japex Garraf Ltd. Interest 30％ （ cost share 40％ ） Operator ： PETRONAS Baghdad Garraf oil field Field Garraf Production Samawah 2013 2030 Nasiriyah Basrah Expected cumulative production : Around 1.3 billion bbl ■ Time Sched
Slide 19: Sakhalin 1 Project
Current status of overseas business ③ Sakhalin 1 Project Project company Odoptu Sakhalin Oil and Gas Development Co., Ltd. (SODECO) Interest Arkutun-Dagi Sakhalin 1 Consortium SODECO Exxon JAPEX Neftegas Ltd. JAPEX 15.29% 30% Minister of Economy, 15.29% Chayvo SODECO Trade and 30% Industry Others Oh
Slide 20: Canada Oil Sands
Current Status of Overseas Business ④ Canada Oil Sands Project Canada Oil Sands Co., Ltd. (CANOS) company Operator : Japan Canada Oil Sands Ltd. (JACOS) Block Hangingstone 3.75 section Production Cumulative Calgary 100％ interest production of 31 million bbl around 6,000 bbl/d (as of end-March, FORT
Slide 21: Canada Shale Gas/LNG Project
Current status of Overseas Business ⑤ Canada Shale Gas/LNG Project Shale Gas development LNG Project and Production Project （Middle-stream） （Up-stream） Block/ North Montney, Lelu Island, Candidate site of British Columbia, the Port of Prince LNG plant Canada Rupert, B.C. Interest 10% Interest 10% Eq
Slide 22: Environment and Innovative Technology Business
Environment and Innovative Technology Business Geothermal Energy Solar Power Business Business ● Musadake area ● ● （Shibetsu TomakomaiTown） Image of solar panels to be installed at Japex Hokkaido district office Drilling operation of Musadake area CCS Methane Hydrate ● Mt. Bandai area Photo provided
Slide 23: Actual Results for FY2014
Result Actual Results for FY2014 Executive Officer Michiro Yamashita Note: Abbreviations used herein are as follows: 1H = First half (1Q-2Q) 2H = Second half (3Q-4Q) (a) = Actual result (e) = Estimate FY = Fiscal Year (FY2014, for instance, means 12 months ended March 31, 2014) 23
Slide 24: Actual Results for FY2014 (Highlight)
Actual Result Actual Results for FY2014 ( Highlight ) FY2013 FY2014 Actual Initial Revised Actual [ Million ￥] estimate estimate (May 2013) (Feb. 2014) Net Sales 231,086 232,692 272,802 276,588 Operating income 13,906 20,722 21,540 24,634 Ordinary income 28,082 28,783 38,083 43,889 Net income (865)
Slide 25: Actual sales of Natural gas for FY2014 (vs FY2013)
Actual Result Actual sales of Natural gas for FY2014 (vs FY2013) FY 2013 FY 2014 change Sales volume : Million M3 Net sales : Million ￥ 1H (a) Full (a) 1H (a) Full (a) 1H Full Sales volume 685 1,455 614 1,418 (70) (36) Natural gas ： Net sales 30,054 69,795 31,883 71,584 +1,828 +1,789 Breakdown of eq
Slide 26: Actual Sales of Crude Oil for FY2014 (vs FY2013)
Actual Result Actual Sales of Crude Oil for FY2014 (vs FY2013) Sales volume : Thousand KL FY 2013 FY 2014 change Net sales : Million ￥ 1H (a) Full (a) 1H (a) Full (a) 1H Full Sales volume 920 1,684 877 1,902 (42) +217 Crude oil: Net sales 46,463 88,529 53,919 119,370 +7,456 +30,841 Breakdown of equi
Slide 27: Actual Results for FY2014 (vs FY2013)
Actual Result Actual Results for FY2014 (vs FY2013) ≪Causes of increase(+) or decrease(-) ≫ FY2013 FY2014 [ Million ￥] Change Gross profit (a) (a) Domestic crude oil and natural gas +¥4.3 billion Net sales 231,086 276,588 +45,502 LNG substitution expense +¥2.0 billion Asset retirement obligations -
Slide 28: Estimate for FY2015
Full Year Estimates Estimate for FY2015 Executive Officer Michiro Yamashita Note: Abbreviations used herein are as follows: 1H = First half (1Q-2Q) 2H = Second half (3Q-4Q) (a) = Actual result (e) = Estimate FY = Fiscal Year (FY2014, for instance, means 12 months ended March 31, 2014) 28
Slide 29: Estimates for FY2015 (Point)
Estimate for FY2015 Estimates for FY2015 (Point) FY2014 FY2015 change [ Million ￥] 1H (a) Full (a) 1H (e) Full (e) 1H Full Net Sales 120,281 276,588 157,514 323,633 +37,232 +47,044 Operating income 11,543 24,634 14,339 33,077 +2,796 +8,442 Ordinary income 19,902 43,889 20,159 41,469 +257 (2,420) Net
Slide 30: Estimated Sales of Natural Gas for FY2015 (vs FY2014)
Estimate for FY2015 Estimated Sales of Natural Gas for FY2015 (vs FY2014) FY 2014 FY 2015 change Sales volume : Million M3 Net sales : Million ￥ 1H (a) Full (a) 1H (e) Full (e) 1H Full Sales volume 614 1,418 770 1,684 +155 +265 Natural gas ： Net sales 31,883 71,584 36,293 80,169 +4,409 +8,585 Breakd
Slide 31: Estimated Sales of Crude Oil for FY2015 (vs FY2014)
Estimate for FY2015 Estimated Sales of Crude Oil for FY2015 (vs FY2014) Sales volume : Thousand KL FY 2014 FY 2015 change Net sales : Million ￥ 1H (a) Full (a) 1H (e) Full (e) 1H Full Sales volume 877 1,902 1,443 2,695 +565 +793 Crude oil: Net sales 53,919 119,370 85,582 158,248 +31,662 +38,878 Brea
Slide 32: Estimates for FY2015
Estimate for FY2015 Estimates for FY2015 ≪Causes of increase(+) or decrease(-) ≫ FY2014 FY2015 [ Million ￥] Change (a) (e) Gross profit Net sales 276,588 323,633 +47,044 Domestic crude oil and natural gas - ¥2.7 billion Asset retirement obligations + ¥2.4 billion Gross profit 66,127 70,611 +4,483 Ov
Slide 33: Oil Price and Exchange Rate Assumptions and Impact on Profits
Estimate for FY2015 Oil Price and Exchange Rate Assumptions and Impact on Profits JCC price Exchange rate Bitumen price Assumption CA$/bbl US$/bbl JP¥ / US$ （ JP¥ /CA$ ） US$ 1/bbl increase in JP¥ 1/US$ weakening in CA$ 1/bbl increase in FY2015 JCC prices would push exchange rates would push bitumen
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