Japan Petroleum Exploration Co., Ltd. · TSE:1662

Japan Petroleum Exploration — FY2009 Earnings Presentation

42 slides from Japan Petroleum Exploration's earnings presentation, May 15, 2009

  1. Slide 1: Presentation of Consolidated Financial Results for the Fiscal Year Ended March 31, 2009

    Note: The following report is an English translation of the Japanese-language original. Presentation of Consolidated Financial Results for the Fiscal Year Ended March 31, 2009 May 15, 2009 Japan Petroleum Exploration Co., Ltd. 1

  2. 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

  3. Slide 3: Contents

    Contents 1. Business Overview and Revision of Mid-Term Business Plan President Osamu Watanabe 2. Consolidated Financial Results for the Fiscal Year Ended March 31, 2009 Senior Managing Director Hiroshi Sato 3. Outlook for the Fiscal Year Ending March 31, 2010 Senior Managing Director Hiroshi Sato 3

  4. Slide 4: Overview and Revision of Mid-Term Business Plan

    Business Overview Business Overview and Revision of Mid-Term Business Plan President Osamu Watanabe 4

  5. Slide 5: Trends in crude oil prices and foreign exchange rates

    Business Overview Trends in crude oil prices and foreign exchange rates ¾ CIF price for early to mid April 2009 (Monthly Bulletin of Statistics) $46.90/BBL JPY/USD 98.21, JPY-denominated price JPY28,970/KL 140 125.0 [Exchange Rate] JPY/USD 130 Exchange Rate JPY/USD 122.5 JPY-denominated Thousand [Pr

  6. Slide 6: Actual results for ended March 31, 2009 and outlook for ending March 31, 2010

    Business Overview Actual results for the fiscal year ended March 31, 2009 and outlook for the fiscal year ending March 31, 2010 (100 million yen) Net sales (left axis) 2,250 450 Ordinary income 2,076 2,021 (right axis) 2,000 400 Net income (right axis) Ordinary income・Net income 1,750 350 [100 milli

  7. Slide 7: Partial revision of mid-term business plan (announced May 2008)

    Mid-Term Business Plan Partial revision of mid-term business plan (announced May 2008) I. Main points in revision of mid-term business plan II. Basic strategies for JAPEX expansion 1. Adherence to basic policies 2. Target reserves III. Revision of preconditions 1. Crude oil price & exchange rate ass

  8. Slide 8: I. Main points in revision of mid-term business plan

    Mid-Term Business Plan I. Main points in revision of mid-term business plan „ In light of the significant change in the business environment such as the rapid deterioration of the global economic situation sparked by the U.S. sub-prime mortgage crisis and the sharp decline in crude oil prices, the M

  9. Slide 9: II. Basic strategies for JAPEX expansion: Adherence to basic policies

    Mid-Term Business Plan II. Basic strategies for JAPEX expansion 1. Adherence to basic policies „ Continued adherence to basic policies for reinforcing the business base of JAPEX 1.1.Increasing Increasingreserves reservesthrough through exploration explorationand anddevelopment development ・Sustain a

  10. Slide 10: II. Basic strategies for JAPEX expansion: Target reserves

    Mid-Term Business Plan II. Basic strategies for JAPEX expansion 2. Target reserves „ No change to target set last year of proven reserves of 350 million BOE by end-March 2013. „ Proven reserves at end-March 2009 increased 47 million BOE (around 21%) from previous year to 272 million BOE. „ Reserves

  11. Slide 11: III. Revision of preconditions: Crude oil price and exchange rate assumptions

    Mid-Term Business Plan III. Revision of preconditions 1. Crude oil price and exchange rate assumptions „ In light of the global economic downturn and the sharp decline in crude oil prices since autumn 2008, assumptions are as follows. ¾Crude oil price: Expected to remain at the level seen in January

  12. Slide 12: III. Revision of preconditions: Target natural gas sales volume

    Mid-Term Business Plan III. Revision of preconditions 2. Target natural gas sales volume „ Natural gas sales volume for the fiscal year ended March 31, 2009 was more or less unchanged from the previous fiscal year, but fell short of the FY2008 projection by around 7% due to a fall in demand among es

  13. Slide 13: IV. Initiatives to improve profits: Rationalization of natural gas selling price

    Mid-Term Business Plan IV. Initiatives to improve profits 1. Rationalization of natural gas selling price „ Work to rationalize our price structure to adjust the per unit selling price of natural gas to a level that reflects fluctuations in energy market conditions to a certain degree, through initi

  14. Slide 14: IV. Initiatives to improve profits: Postponement of domestic exploration investment

    Mid-Term Business Plan IV. Initiatives to improve profits 2. Postponement of domestic exploration investment „ Seek to improve profits by postponing certain operations and paring general administrative expenses, especially during the years of the first half of the mid-term plan, in response to the s

  15. Slide 15: V. Specific changes to income and expenditure targets: Consolidated income, operating cash flows

    Mid-Term Business Plan V. Specific Changes to income and expenditure targets 1. Consolidated income, operating cash flows „ Estimated average net income over the five-year period from the fiscal year ended March 31, 2009 to the fiscal year ending March 31, 2013 is revised to around ¥11 billion, a de

  16. Slide 16: V. Specific changes to income and expenditure targets: Allocations of operating cash flows

    Mid-Term Business Plan V. Specific changes to income and expenditure targets 2. Allocations of operating cash flows „ Allocations of estimated operating cash flows (before deduction of taxes and exploration expenses) over the next five years from the fiscal year ended March 31, 2009 to the fiscal ye

  17. Slide 17: For Reference: Estimated capital expenditure and depreciation and amortization

    Mid-Term Business Plan 【For Reference】 Estimated capital expenditure and depreciation and amortization „ Consolidated depreciation and amortization, excluding development expenses related to existing overseas projects, etc. (Libya projects, Canada Oil Sand’s Hangingstone project, etc.) in relation t

  18. Slide 18: VI. Summary

    Mid-Term Business Plan VI . Summary „ Falling oil prices, the slow growth of natural gas sales volume amid economic downturn and other negative factors will inevitably push profits down for some time. „ Notwithstanding this environment, we will adhere to our growth strategy’s core policies of “Susta

  19. Slide 19: Summary of business plan for ending March 31, 2010

    Business Overview Summary of business plan for the fiscal year ending March 31, 2010 ¾ Gas business ① Continue working to rationalize natural gas selling prices. ② Make investment (drilling of production wells, etc.) to ensure stable supply. ¾ Domestic exploration Postpone certain operations in the

  20. Slide 20: Domestic exploration plan for ending March 31, 2010

    Business Overview Domestic exploration plan for the fiscal year ending March 31, 2010 Exploration well drilling schedule Fiscal year ending March 31, 2010 Depth Notes 1Q 2Q 3Q 4Q Yashimakogen A1 3,500m Iwafune Oki Z 2,240m Extension well ［Results of exploration in fiscal year ended March 31, 2009］ ・

  21. Slide 21: Capital expenditure plan for ending March 31, 2010

    Business Overview Capital expenditure plan for the fiscal year ending March 31, 2010 Unit: Billion yen FY08 (a) FY09(a) FY10(e) Capital 41.7 30.9 28.3 Expand production expenditure* facilities to ensure Depreciation and 16.6 21.5 21.7 natural gas supply amortization capability and stable * Based on

  22. Slide 22: Overseas business: Initiatives in strategic regions

    Business Overview Overseas business: Initiatives in strategic regions Canada North Africa Sakhalin Oil sands development 2 blocks in Libya Sakhalin 1 Project (Production & Exploration (reserve evaluation)) (Exploration) (Production) Legend =Strategic regions =Blocks in which consolidated subsidiarie

  23. Slide 23: Current status of overseas business (1) Canada: Oil Sands

    Business Overview Current status of overseas business (1) Canada： Oil Sands ¾ Canada Oil Sands Co., Ltd.: Areas in which JACOS holds interest in oil sand Consolidated subsidiary (86.64% owned by JAPEX) ¾ Operator: Wholly owned Canadian subsidiary Japan Canada Oil Sands Ltd. (JACOS) ¾ Producing area：

  24. Slide 24: Current status of overseas business (2) Sakhalin Project

    Business Overview Current status of overseas business (2) Sakhalin 1 Project Company Country Interest Notes Sakhalin 1 Consortium Exxon Neftegas Ltd. U.S. 30.0% Subsidiary of ExxonMobil, Operator OVERVIEW 0 5 10 Sakhalin Oil and Gas Japan 30.0% Development Co., Ltd. Odoptu Kilometers Odoptu PAD#2 Sa

  25. Slide 25: Current status of overseas business (3) Libya

    Business Overview Current status of overseas business (3) Libya: Block 40-3/4, Block 176-4 ¾ Japex Libya Ltd.: Consolidated subsidiary (wholly owned by JAPEX) Offshore Block 40-3/4 (coastal area of the Mediterranean Sea) ¾ Interest： 42% (Operator) Block 40-3/4 ¾ Actual results and plans: Tripoli Mar

  26. Slide 26: Current status of overseas business (4) Iraq

    Business Overview Current status of overseas business (4) Iraq ¾ JAPEX signed Memorandum of Understanding (MOU) with Ministry of Oil of Iraq in March, 2005 for technical cooperation in various aspects, which was successfully completed in March, 2009. ¾ Major achievements under the MOU • Conducted jo

  27. Slide 27: Current status of overseas business (5) Indonesia: Kangean Block

    Business Overview Current status of overseas business (5) Indonesia: Kangean Block ¾ Kangean Energy Indonesia Ltd. (KEI) and two other companies： Equity-method affiliates West Kangean gas field Pagerungan Utara oil field ¾ Block Name: Kangean Block (Exploration) (Development) (offshore East Java） Ja

  28. Slide 28: Current status of overseas business (6) Indonesia: Block A

    Business Overview Current status of overseas business (6) Indonesia: Block A ¾ Japex Block A Ltd.: Block A Consolidated subsidiary (wholly owned by JAPEX) Jakarta ¾ Block Name: Block A (northern Sumatra) ¾ Interest: 16.67% 1000 km ¾ Operator: Medco ¾ Plan to start production in 2010, with gross prod

  29. Slide 29: Current status of overseas business (7) Indonesia: Buton Block

    Business Overview Current status of overseas business (7) Indonesia: Buton Block ¾ Japex Buton Ltd.: Consolidated subsidiary (wholly owned by JAPEX) ¾ Block Name: Buton Block (onshore/offshore block on Buton Island, Southeast Sulawesi) ¾ Interest: 40% ¾ Operator: Buton Block Japex Buton Ltd. ¾ Resul

  30. Slide 30: Technological R&D initiatives

    Business Overview Technological R&D initiatives 1. Carbon-dioxide Capture and Storage (CCS*) 2. GTL (Gas to Liquid) Japan CCS Co., Ltd. (incorporated May 2008) is engaged Nippon GTL Technology Research Association in the following studies for the implementation of large-scale (incorporated October 2

  31. Slide 31: Consolidated Financial Results for the Fiscal Year Ended March 31, 2009

    Consolidated Financial Results for the Fiscal Year Ended March 31, 2009 Senior Managing Director Hiroshi Sato 31

  32. Slide 32: Consolidated financial results for ended March 31, 2009

    Actual Results Consolidated financial results for the fiscal year ended March 31, 2009 FY08 FY09 [Million yen] Initial estimate Revised estimate (1) Revised estimate (2) Revised estimate (3) Actual result (a) Announced May 15 (e) Announced Aug. 8 (e) Announced Nov. 7 (e) Announced Feb. 10 (e) (a) Ne

  33. Slide 33: Actual sales of crude oil in ended March 31, 2009

    Actual Results Actual sales of crude oil in the fiscal year ended March 31, 2009 (YoY comparison) FY08 FY09 YoY change 1Q-2Q 1Q-4Q 1Q-2Q 1Q-4Q 1Q-2Q 1Q-4Q (a) (a) (a) (a) Crude oil: Sales volume[Thousand KL] 1,227 2,450 1,028 2,337 (199) (113) Net sales [Million yen] 59,177 128,391 73,668 115,933 14

  34. Slide 34: Actual sales of natural gas in ended March 31, 2009

    Actual Results Actual sales of natural gas in the fiscal year ended March 31, 2009 (YoY comparison) FY08 FY09 YoY change 1Q-2Q 1Q-4Q 1Q-2Q 1Q-4Q 1Q-2Q 1Q-4Q (a) (a) (a) (a) Natural gas: Sales volume [Million M3] 631 1,486 647 1,485 16 (1) Net sales [Million yen] 20,102 48,982 22,906 54,126 2,804 5,1

  35. Slide 35: Causes of income fluctuations (YoY comparison)

    Actual Results Consolidated financial results for the fiscal year ended March 31, 2009: Causes of income fluctuations (YoY comparison) [Million yen] FY08 FY09 YoY ≪Causes of increase or decrease (MEMO)≫ (a) (a) change Net sales 207,638 202,127 (5,510) Gross profit Domestic crude oil and natural gas

  36. Slide 36: Outlook for the Fiscal Year Ending March 31, 2010

    Outlook for the Fiscal Year Ending March 31, 2010 Senior Managing Director Hiroshi Sato 36

  37. Slide 37: Consolidated financial estimates for ending March 31, 2010

    Outlook Consolidated financial estimates for the fiscal year ending March 31, 2010 Sales of domestic crude oil and gas (Billion yen) FY10 30.0 1H 2H Full [Million yen] 27.5 (1Q-2Q) (3Q-4Q) (1Q-4Q) 25.0 5.3 (e) (e) (e) 22.5 Crude oil CIF price USD 40.00 /bbl USD 40.00 /bbl USD 40.00 /bbl 20.0 Domesti

  38. Slide 38: Consolidated financial estimates: main points compared with previous year

    Outlook Consolidated financial estimates for the fiscal year ending March 31, 2010 – Main points compared with previous year FY09 FY10 YoY change [Million yen] 1Q-2Q (a) 1Q-4Q (a) 1Q-2Q(e) 1Q-4Q(e) 1Q-2Q 1Q-4Q Net sales 110,912 202,127 59,903 129,313 (51,009) (72,814) Operating income 12,546 20,090

  39. Slide 39: Estimated crude oil sales for ending March 31, 2010

    Outlook Estimated crude oil sales for the fiscal year ending March 31, 2010 FY09 FY10 YoY change 1Q-2Q 1Q-4Q 1Q-2Q 1Q-4Q 1Q-2Q 1Q-4Q (a) (a) (e) (e) Crude oil: Sales volume[Thousand KL] 1,028 2,337 1,016 2,194 (12) (143) Net sales [Million yen] 73,668 115,933 21,888 46,970 (51,780) (68,963) [ Breakd

  40. Slide 40: Estimated natural gas sales for ending March 31, 2010

    Outlook Estimated natural gas sales in the fiscal year ending March 31, 2010 FY09 FY10 YoY change 1Q-2Q 1Q-4Q 1Q-2Q 1Q-4Q 1Q-2Q 1Q-4Q (a) (a) (e) (e) Natural gas: Sales volume [Million M3] 647 1,485 693 1,545 46 60 Net sales [Million yen] 22,906 54,126 24,352 53,415 1,446 (711) Of which, domesticall

  41. Slide 41: Causes of income fluctuations (YoY comparison) for ending March 31, 2010

    Outlook Consolidated financial estimates for the fiscal year ending March 31, 2010 Causes of income fluctuations (YoY comparison) [Million yen] FY09 FY10 YoY ≪Causes of increase or decrease (MEMO)≫ (a) (e) change Net sales 202,127 129,313 (72,814) Gross profit Domestic crude oil and natural gas -¥11

  42. Slide 42: Oil price and exchange rate assumptions and impact on profits

    Outlook Oil price and exchange rate assumptions in the fiscal year ending March 31, 2010 and impact on profits FY10 1H 2H Full YoY FY08 (a) FY09 (a) (1Q-2Q) (3Q-4Q) (1Q-4Q) change (e) (e) (e) Crude oil CIF price (USD/bbl) 76.21 89.71 40.00 40.00 40.00 (49.71) Exchange rate (JPY/USD) 114.66 102.56 90

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