Japan Petroleum Exploration Co., Ltd. · TSE:1662
Japan Petroleum Exploration — FY2016 Earnings Presentation
39 slides from Japan Petroleum Exploration's earnings presentation, May 15, 2017
Slide 1: Presentation Meeting of Consolidated Financial Results for FY Ended March 31, 2017
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, 2017 May 15 , 2017 Japan Petroleum Exploration Co .,Ltd.
Slide 2: Cautionary Statement
Cautionary Statement Any information contained herein with respect to JAPEX’s plans, forecasts, strategies and other statements that are not historical facts are forward-looking statements about the future performance of JAPEX. Readers should be aware that the actual results and events may be differ
Slide 3: Contents
Contents Ⅰ. Financial Highlights, Dividend Policy, Follow-Up of the Mid-Term Business Plan President Hideichi Okada Ⅱ. Actual Results for the FY3/17 Managing Executive Officer Michiro Yamashita Ⅲ. Forecasts for the FY3/18 Managing Executive Officer Michiro Yamashita 3
Slide 4: Financial Highlights, Dividend Policy, Follow-Up of the Mid-Term Business Plan
Ⅰ. Financial Highlights, Dividend Policy, Follow-Up of the Mid-Term Business Plan President Hideichi Okada 4
Slide 5: Trends in Crude Oil Prices and Foreign Exchange Rate
［Crude Oil Price US$/bbl] $100 $110 $120 $30 $40 $50 $60 $70 $80 $90 2014-03 2014-04 2014-05 2014-06 2014-07 2014-08 2014-09 2014-10 2014-11 2014-12 2015-01 2015-02 2015-03 2015-04 2015-05 ＜ Financial Highlights ＞ 2015-06 2015-07 2015-08 5 2015-09 2015-10 2015-11 2015-12 2016-01 2016-02 2016-03 2016
Slide 6: Actual Results for FY3/17 and Forecasts for FY3/18
＜ Financial Highlights ＞ Actual Results for FY3/17 and Forecasts for FY3/18 ■ Actual Results for FY3/17 (vs FY3/16) Billion ¥ Billion ¥ FY3/16 FY3/17 260 15 Billion JP¥ Change (a) (a) Net Sales 240.3 207.1 -33.1 -13% 240.3 Net Sales (Left Axis) 240 13 Operating Income 8.3 0.6 -7.6 -91% Ordinary Inco
Slide 7: Dividend Policy: Payments in FY3/17 and Forecasts in FY3/18
＜Dividend Policy＞ Payments in FY3/17 and Forecasts in FY3/18 ■JAPEX’s Basic Policy Based on long-term and stable dividends for shareholders Amount of Dividends will be determined in each period for the time by comprehensively consideration with profit conditions and future needs for funds, such
Slide 8: Long-Term Business Vision and Medium-Term Business Plan
＜Follow-Up of the Mid-Term Business Plan＞ Long-Term Business Vision and Medium-Term Business Plan “Transformation to an Integrated Energy Company with a Focus on Oil and Gas E&P” Regarding our business as the tree, E&P will be “root” and “trunk” and the JAPEX group is pursuing to become a well-bal
Slide 9: Outlook of Business Environment (1) Macro Environment
＜Follow-Up of the Mid-Term Business Plan＞ Outlook of Business Environment (1)Macro Environment Summary of Outlook at formulating the Mid-Term Business Plan ① Actualized volatility risk of global crude oil price ② Geopolitical Risk ③ Intensifying competition of domestic gas business ④ Measure for g
Slide 10: Outlook of Business Environment (2) Oil Price/Exchange Rate
＜Follow-Up of the Mid-Term Business Plan＞ Outlook of Business Environment (2)Oil Price/Exchange Rate Revised our oil price and exchange rate forecasts lower than previous follow-up of the Mid-Term Business Plan on 2016 Recognizing the harsh market environment, we assume that the range of rising
Slide 11: Progress (1) Current Status of Ongoing Projects
＜Follow-Up of the Mid-Term Business Plan＞ Progress (1)Current Status of Ongoing Projects E&P business Domestic Natural Gas Supply Business <Highest Priority Challenges> <Highest Priority Challenges> Establish “Integrated Natural Gas Supply System” Stable execution of ongoing overseas projects Di
Slide 12: Progress (2) Action Plan Under the Low Oil Price
＜Follow-Up of the Mid-Term Business Plan＞ Progress (2)Action Plan Under the Low Oil Price Based on risk analysis under continuously low oil & gas prices, conducting measures such as radically cost reduction Canada Oil Sands Temporary Canada Shale Gas and LNG 開 発Production 準 備 中 Suspension of Hangi
Slide 13: Progress (3) Timeline of Major Projects
＜Follow-Up of the Mid-Term Business Plan＞ Progress (3)Timeline of Major Projects Transition of capital investment and depreciation FY3/17 FY3/18 FY3/19 FY3/20 FY3/21 FY3/22 Billion ¥ Billion ¥ 150 20 Canada Oil Sands ◆ (Complement of the ◆ 130 16.8 17.0 16.6 Commencement of production 15.6 Expansion
Slide 14: Progress (4) Transition of Production Volume and Proved Reserves
＜Follow-Up of the Mid-Term Business Plan＞ Progress (4)Transition of Production Volume and Proved Reserves Actual on FY3/17; 72,000BOED of Production Volume / 352MMBOE of Proved Reserves Production volume was 2% decrease due to temporary suspension of production operation in the Hangingstone Demo
Slide 15: Prospects of Profit and Return to Shareholders
＜Follow-Up of the Mid-Term Business Plan＞ Prospects of Profit and Return to Shareholders Due to the continuation of low oil price and expansion of loss of affiliated company accounted for by the equity- method, consolidated profit attributable to owners of parent in FY3/17 was sluggish and FY3/18
Slide 16: CSR Management – Promotion of Core Policies SHINE
＜Follow-Up Our Mid-Term Business Plan＞ CSR Management – Promotion of Core Policies “SHINE” S ：Stable & Sustainable Energy Supply H ：HSE as Our Culture I ：Integrity & Governance Pursuing efforts to realize core CSR policies in N ：Being a Good Neighbor response to expectations and requirements from al
Slide 17: Actual Results for the FY3/17
Ⅱ. Actual Results for the FY3/17 Managing Executive Officer Michiro Yamashita 17
Slide 18: Actual Results for FY3/17 (Highlight)
Actual Result Actual Results for FY3/17 (Highlight) FY3/17 Billion JP¥ FY3/16 (a) Initial Forecasts Revised Forecasts Revised Forecasts (f) (May 12, 2016) (f) (Nov.8, 2016) (f) (Feb.8, 2017) (a) Net Sales 240.3 194.5 189.5 210.3 207.1 Operating Income 8.3 0.4 -1.2 -0.8 0.6 Ordinary Income 4.6 1.0 -3
Slide 19: Actual Sales of Natural Gas for FY3/17
Actual Result Actual Sales of Natural Gas for FY3/17 (year-on-year) Sales volume : Million M3 FY3/16 FY3/17 Change Net sales : Million JP¥ Full (a) Full (a) Full Sales volume 1,780 1,864 +84 Natural gas Net sales 68,469 55,329 -13,139 Decline in selling price Breakdown Domestic gas Sales volume 1,27
Slide 20: Actual Sales of Crude Oil for FY3/17
Actual Result Actual Sales of Crude Oil for FY3/17 (year-on-year) Sales volume : Thousand KL FY3/16 FY3/17 Change Net sales : Million JP¥ Full (a) Full (a) Full Sales volume 3,233 2,762 -470 Crude oil Net sales 102,918 82,098 -20,820 Breakdown Sales volume 340 301 -38 Domestic crude oil (*) Net sale
Slide 21: Actual Results for FY3/17 (year-on-year)
Actual Result Actual Results for FY3/17 (year-on-year) FY3/16 FY3/17 Main factors for change Million JP¥ Change (a) (a) Increase factor (+) / Decreasing factor (-) Gross profit Net sales 240,302 207,130 -33,171 Domestic crude oil and natural gas - ¥7.0 billion Overseas consolidated subsidiaries - ¥7
Slide 22: Forecasts for the FY3/18
Ⅲ. Forecasts for the FY3/18 Managing Executive Officer Michiro Yamashita 22
Slide 23: Full Year Forecasts for FY3/18
Forecasts for FY3/18 Full Year Forecasts for FY3/18 [Assumptions for Crude Oil Prices and Exchange Rate] Upper: from January 2016 to March 2017. Lower: from January 2017 to March 2018. Full year Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec. Jan.-Mar. 2016(a) 37.17 45.92 46.72 52.00 45.60 JCC price US$/bbl
Slide 24: Natural Gas Sales Forecasts for FY3/18
Forecasts for FY3/18 Natural Gas Sales Forecasts for FY3/18 Sales volume : Million M3 FY3/17 FY3/18 Change Net sales : Million JP¥ Full (a) Full (f) Full Sales volume 1,864 1,736 -129 Natural gas ： Rising selling price Net sales 55,329 56,572 +1,242 Breakdown Domestic gas Sales volume 1,265 1,240 -2
Slide 25: Crude Oil Sales Forecasts for FY3/18
Forecasts for FY3/18 Crude Oil Sales Forecasts for FY3/18 Sales volume : Thousand KL FY3/17 FY3/18 Change Net sales : Million JP¥ Full (a) Full (f) Full Sales volume 2,762 2,898 +136 Crude oil Net sales 82,098 93,230 +11,132 Rising selling price Breakdown Sales volume 301 271 -31 Domestic crude oil
Slide 26: Forecasts for FY3/18
Forecasts for FY3/18 Forecasts for FY3/18 FY3/17 FY3/18 Main factors for change Million JP¥ Change Increase factor (+) / Decreasing factor (-) (a) (f) Gross profit Net sales 207,130 214,878 +7,747 Domestic crude oil and natural gas - ¥2.0 billion Gross profit 32,172 32,660 +487 Overseas consolidated
Slide 27: Assumptions and Impacts on Profits
Forecasts for FY3/18 Assumptions and Impacts on Profits JCC price Exchange rate Canadian gas price Assumptions C$2.23/mcf US$50.00/bbl JP¥110.00 / US$ (JP¥85.00/C$) US$1/bbl increase in JCC A weakening in JP¥1/US$ C$1/mcf increase in gas FY3/18 prices would push profits exchange rates would push pri
Slide 28: Appendix
Ⅳ. Appendix 28
Slide 29: E&P Business (1) Initiatives in Japan and Overseas
＜Appendix＞ E&P Business (1) Initiatives in Japan and Overseas Oil Sands Project (Temporary suspension of production / Preparation for production) U.K. North Sea Block Sakhalin 1 Project (Exploration) (Production & Development) Shale Gas/LNG Project (Production of natural gas / planning of LNG plant)
Slide 30: E&P Business (2) Domestic Initiatives
＜Appendix＞ E&P Business (2) Domestic Initiatives Compensation of domestic reserves Operates 10 domestic oil and gas fields and pursue the maintenance of production volume Plan for the FY3/18 • Domestic exploration (Geophysics, Exploration well) is not scheduled in FY3/18 Yufutsu Yurihara Oil and Gas
Slide 31: E&P Business (3) Canada Shale Gas and LNG Project
＜Appendix＞ E&P Business (3) Canada Shale Gas and LNG Project Upstream: Shale Gas development Midstream: LNG project and production project Calgary Lelu Island, Block / North Montney Area, British Columbia, Canada The Port of Prince Rupert, Proposed site British Columbia, Canada Prince Rupert North M
Slide 32: E&P Business (4) Canada Oil Sands Project
＜Appendix＞ E&P Business (4) Canada Oil Sands Project Project Canada Oil Sands Co., Ltd. (CANOS) Company Operator : Japan Canada Oil Sands Ltd. (JACOS) Calgary Hangingstone demonstration area Temporary suspension of production FORT McMURRAY Area 100％ interests (Cumulative production： approximately 5,
Slide 33: E&P Business (5) Iraq: Garraf Oil Field
＜Appendix＞ E&P Business (5) Iraq : Garraf Oil Field Project Japex Garraf Ltd. company Interest 30％ (cost share 40%) Operator ： PETRONAS Baghdad Field Garraf Oil Field In Production Garraf Oil Field Samawah 2013 2030 Nasiriyah Expected cumulative production : Basrah around 1.1 billion bbl ■ Time Sche
Slide 34: E&P Business (6) Indonesia: Kangean Block
＜Appendix＞ E&P Business (6) Indonesia: Kangean Block Pagerungan Utara Oil Field West Kangean Gas Field （Production suspended） (Exploration) Jakarta Pagerungan Gas Field (Production) West Java Pipeline Java Island Sepanｊang Island Oil Field (Production suspended) TSB Gas Field Bali Island （Production
Slide 35: E&P Business (7) Sakhalin 1 Project
＜Appendix＞ E&P Business (7) Sakhalin 1 Project Odoptu Sakhalin Oil and Gas Development Project Co., Ltd. (SODECO) Company Equity-method affiliate Interest Sakhalin 1 Consortium SODECO Arkutun-Dagi JAPEX Exxon Neftegas Ltd. METI 15.29% 30% 50.00% SODECO Others 30% Others 40% 34.71% Chayvo In Producti
Slide 36: Construction of Soma LNG Terminal
＜Appendix＞ Domestic Natural Gas Supply Business (1) Construction of Soma LNG Terminal ■Soma LNG Terminal Shinchi-Town, Fukushima Pref. (No.4 wharf area of Site Soma Port) One LNG Tank of Aboveground Style/PC type Capacity containing 230,000kL LNG ocean vessel ：One (maximum 210,000m3 Receiving class)
Slide 37: Natural Gas-Fired Power Generation Project
＜Appendix＞ Domestic natural gas supply business (2) Natural Gas-Fired Power Generation Project ■Overview of the Natural Gas-fired Electric Power Generation Plant Company name Fukushima Gas Power Co., Ltd.* Method Gas Turbine and Steam Power (Combined Cycle) Capacity 1.18 million kW (2 units of 0.59
Slide 38: Environment and Innovative Technology Business
＜Appendix＞ Environment and Innovative Technology Business CCS Geothermal Power Mt. Musa area （Shibetsu Town） ● Tomakomai City ● ● ● Mt. Furebetsu south area （Kushiro City) Photo provided by Japan CCS Co., Ltd * Ongoing local negotiation. Ground facilities of CCS demonstration project in Tomakomai Sh
Slide 39: Abbreviation
Abbreviation BOE(D) Barrels of Oil Equivalent (per Day) CCS Carbon dioxide Capture and Storage CIF Cost, Insurance and Freight COP Conference Of the Parties CSR Corporate Social Responsibility E&P Exploration and Production FID Final Investment Decision GHG Greenhouse Gas HE Hangin
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