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

Japan Petroleum Exploration — H1 FY2013 Earnings Presentation

32 slides from Japan Petroleum Exploration's earnings presentation, Nov 2, 2012

  1. Slide 1: Presentation of Consolidated financial results for the six months ended September 30, 2012

    Note: The following report is an English translation of the Japanese-language original. Presentation of Consolidated financial results for the six months ended September 30, 2012 November 2 , 2012 Japan Petroleum Exploration Co., Ltd. copyright©2012 JAPAN PETROLEUM EXPLORATION Co.,LTD. All rights re

  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 President Osamu Watanabe ２．Consolidated financial results for the six months ended September 30, 2012 Executive Vice President Hiroshi Sato ３．Revised full year forecasts for the fiscal year ending March 31, 2013 Executive Vice President Hiroshi Sato 3

  4. Slide 4: Business overview

    Business overview President Osamu Watanabe 4

  5. Slide 5: Trends in Crude oil prices and Foreign exchange rates

    [crude oil price US$/bbl] $40 $50 $60 $70 $80 $90 $100 $110 $120 $130 $140 2009-10 2009-11 2009-12 2010-01 2010-02 2010-03 2010-04 2010-05 2010-06 2010-07 2010-08 2010-09 2010-10 2010-11 Yen 2010-12 2011-01 2011-02 5 2011-03 2011-04 2011-05 2011-06 2011-07 2011-08 78.24/USD on a prompt report basis

  6. Slide 6: Revised estimates for FY2013 (Highlight)

    Revised estimates for FY2013 (Highlight) FY13 (e) Billion ￥ Billion ￥ FY12 240 25 [ Billion ￥] Initial Revised % change (a) estimate estimate change (vs Initial 230.6 (May11 ‘12 (Oct. 26‘12) estimate) Net Sales 230.6 214.7 222.2 7.6 4% 230 Net Sales (left axis) 20 22.1 222.2 Operating income 15.0 10

  7. Slide 7: Outline of Yufutsu oil and gas field and impairment loss for its business assets

    Outline of Yufutsu oil and gas field and the postnig of impairment loss for its business assets 【Outline of Yufutsu oil and gas field and the details of impairment loss】 ・ Started production since February 1996 Cummurative production : 2,788 thousand kl of crude oil, 4.87 billion m3 of natural gas ・

  8. Slide 8: After the decline in Yufutsu oil and gas field production - a reinforcement of domestic business

    After the decline in Yufutsu oil and gas field production － a reinforcement of domestic business To respond to the decline in the production of the Yufutsu oil and gas field and the associated fall in earnings, the Company will take the following steps aimed at reinforcement and increasing the value

  9. Slide 9: Pursue Exploration and Development Potential in Hokkaido

    Pursue Exploration and Development Potential in Hokkaido Consider moving to the development phase for Yufutsu shallow crude oil formation as well as maximizing the exploration and development potential of its surrounding areas, including Akeno, which was discovered in the previous fiscal year. Pursu

  10. Slide 10: Increasing Sales of Natural Gas and Securing of Stable Supply

    Increasing Sales of Natural Gas and Securing of Stable Supply We will aim to secure stable supply with the use of Yufutsu LNG Receiving Terminal and domestic LNG vessels, while moving forward with the study of a new LNG receiving terminal on the Pacific side to enable competitive material procuremen

  11. Slide 11: Domestic exploration for FY2013 Result for 1H & Plan for 2H

    Domestic exploration for FY2013 Result for 1H & Plan for 2H ●Extention well : 4 wells ■Seismic survey : 2 sites Akebono（T1) A5 ●Extention wells drilling schedule FY2013 Numanohata(T1) East SK-3DH Total 1Q 2Q 3Q 4Q Depth 4 5 6 7 8 9 10 11 12 1 2 3 Numanohata(T1) East SK-3DH 2,275m Succeeded Akebono(T

  12. Slide 12: Overseas business: Basic strategy

    Business Overview Overseas business : Basic strategy Oil sands development (production & preparation for development) Sakhalin 1 Project Canada (production) London rep.office Sakhalin Iraq : Garraf oil field (development) Middle East Houston rep.office Beijing rep.office Japex (U.S.)Corp. North Afri

  13. Slide 13: Current status of overseas business ① Canada oil sands

    Business Overview Current status of overseas business ① Canada oil sands ■ Areas in which JACOS holds interest in oil sands leases Canada Oil Sands Co., Ltd. (CANOS) Project company (86.64% owned by JAPEX ) Japan Canada Oil Sands Ltd. (JACOS) Operator (Local subsidiary, wholly owned by CANOS) Block

  14. Slide 14: Current status of overseas business ② Iraq

    Business Overview Current status of overseas business ② Iraq Garraf development project North Oil PETRONAS Contractors JAPEX Company Development and Production Service Contract (Operator) Contract Type (NOC) Counterparty South Oil Company (SOC) Cost share interest 60% 40％ - 20 years Contract term Re

  15. Slide 15: Current status of overseas business ③ Sakhalin 1 Project

    Business Overview Current status of overseas business ③ Sakhalin 1 Project Sakhalin 1 Consortium Interest Exxon Neftegas Ltd. 30% Sakhalin Oil and Gas Development Co., Ltd. (SODECO) 30% Odoptu Minister of Economy, Trade and Industry : 50.00% JAPEX : 14.46% ITOCHU Corp. : 14.46% Marubeni Corp. : 11.6

  16. Slide 16: Current status of overseas business ④ Indonesia: Kangean Block

    Business Overview Current status of overseas business ④ Indonesia: Kangean Block Jakarta Kangean Energy Indonesia Ltd. (KEI) Project Surabaya and two other companies. Java Island company (Equity-method affiliates) Pagerungan Utara oil field (productionsuspended) West Kangean gas field (Exploration)

  17. Slide 17: Current status of overseas business ⑤ Indonesia: Block A Aceh

    Business Overview Current status of overseas business ⑤ Indonesia: Block A Aceh Project company Japex Block A Ltd. Interest 16.67% Block A Aceh Block (Northern Sumatra) Block A Aceh Operator Medco Gross Around 100 million cf/d production (around 20,000 bbl/d in crude oil equivalent ） Jakarta 2011 Ef

  18. Slide 18: Consolidated financial results for the six months ended September 30, 2012

    Consolidated financial results for the six months ended September 30, 2012 Executive Vice President Hiroshi Sato 18

  19. Slide 19: Details of Impairment Loss for Yufutsu oil & gas field production facilities

    1H Result Details of Imparment Loss for Yufutsu oil & gas field production facilities billion Sign of imparment loss 60 Found the production capacity declined by assessment of the Yufutsu oil & gas field Cash flow calculation and its precondition of production volume Suppose the production capacity

  20. Slide 20: Actual financial results for 1H FY2013 (Summary)

    1H Result Actual financial results for 1H FY2012 (Summary) Billion ￥ Billion ￥ FY13 1H FY12 Initial [ Billion ￥] % change 110 105.9 105.9 15 1H (a) estimate 104.5 (Aug. ‘12) (a) (vs Initial estimate) (e) Net Sales (left axis) 100 10 Net Sales 104.5 106.2 105.9 -0% Operating income 6.2 4.9 1.7 -64% 9

  21. Slide 21: Actual sales of natural gas in 1H FY2013 (vs FY2012)

    1H Result Actual sales of natural gas in 1H FY2013 (vs FY2012) Sales volume : Million m3 FY2012 FY2013 change Net sales : Million ￥ 1H (a) 1H (a) 1H Sales volume million M3 742 685 (56) - Decrease in demand for Natural gas: industrial users Net sales million ￥ 31,170 30,054 (1,115) -Rise in sales pr

  22. Slide 22: Actual sales of crude oil in 1H FY2013

    1H Result Actual sales of crude oil in 1H FY2013 Sales volume : Thousand KL FY2012 FY2013 Net sales : Million ￥ change 1H(a) 1H(a) Sales volume 896 920 24 Crude oil: Increase in purchased crude oil. Net sales 46,649 46,463 (186) Breakdown of equity oil Domestically produced Sales volume 239 240 0 cr

  23. Slide 23: Actual financial results for 1H FY2013 (vs FY2012)

    1H Result Actual financial results for 1H FY2013 (vs FY2012) ≪Causes of increase(+) or decrease(-) ≫ FY2013 FY2013 [ Million ￥] Gross profit 1H (a) 1H(a) Domestic crude oil and natural gas -¥2.8 billion before impairment LNG substitution expense - ¥1.8 billion impairment loss total change loss Trasn

  24. Slide 24: Revised full year forecasts for the fiscal year ending March 31, 2013

    Revised full year forcasts for the fiscal year ending March 31, 2013 Executive Vice President Hiroshi Sato 24

  25. Slide 25: Revised estimates for FY2013 (Summary)

    Revised Full Year Forecast Revised estimates for FY2013 (Summary) Billion ￥ Billion ￥ FY2013 (e) [ Billion ￥] Net Sales (left axis) Initial Revised % 240.0 25 estimate change (May11 ‘12) estimate (Oct.26 ‘12) change 230.0 222.2 222.2 220.0 214.7 20 Net Sales 214.7 222.2 7.5 4% Operating income 10.0

  26. Slide 26: Revised estimated natural gas sales in FY2013 (vs Initial estimate)

    Revised Full Year Forecast Revised estimated natural gas sales in FY2013 (vs Initial estimate) Initial estimate Revised estimate Sales volume : Million M3 (May11 ‘12) (Oct.26 ‘12) change Net sales : Million ￥ 1H (e) Full (e) 1H (a) Full (e) 1H Full Sales volume 698 1,501 685 1,466 (12) (35) Natural

  27. Slide 27: Revised estimated crude oil sales in FY2013 (vs Initial estimate)

    Revised Full Year Forecast Revised estimated crude oil sales in FY2013 (vs Initial estimate) Initial estimate Revised estimate Sales volume : Thousand KL (May11 ‘12) (Oct.26 ‘12) change Net sales : Million ￥ 1H (e) Full (e) 1H (a) Full (e) 1H Full Sales volume 804 1,764 920 1,689 +116 (75) Crude oil

  28. Slide 28: Revised estimates for FY2013 (vs Initial estimate)

    Revised Full Year Forecast Revised estimates for FY2013 (vs Initial estimate) ≪Causes of increase(+) or decrease(-) ≫ [ Million ￥] FY2013 FY2013(e) Gross profit (e) Revised estimate (Oct.26 ‘12) Domestic crude oil and natural gas +0.4 billion Initial before LNG substitution expense - ¥0.5 billion es

  29. Slide 29: Revised estimated natural gas sales in FY2013 (vs FY2012)

    Revised Full Year Forecast Revised estimated natural gas sales in FY2013 (vs FY2012) Sales volume : Million M3 FY2012 FY2013Revised estimate (Oct.26 ‘12) change Net sales : Million ￥ (vs FY2012) Full (a) 1H (a) 2H (e) Full (e) Sales volume 1,730 685 781 1,466 (264) Natural gas: Net sales 74,957 30,0

  30. Slide 30: Revised estimated crude oil sales in FY2013 (vs FY2012)

    Revised Full Year Forecast Revised estimated crude oil sales in FY2013 (vs FY2012) Sales volume : Thousand KL FY12 FY13 Revised estimate (Oct.26 ‘12) change Net sales : Million ￥ (vs FY12) Full (a) 1H (a) 2H (e) Full (e) Sales volume 1,778 920 769 1,689 (90) Crude oil: Net sales 89,891 46,463 37,010

  31. Slide 31: Revised estimates for FY2013 (vs FY2012)

    Revised Full Year Forecast Revised estimates for FY2013 (vs FY2012) ≪Causes of increase(+) or decrease(-) ≫ [ Million ￥] FY2012 FY2013 (e) Gross profit (a) Revised estimate (Oct.26 ‘12) Domestic crude oil and natural gas -¥3.5 billion before impairment LNG substitution expense - ¥0.3 billion impairm

  32. Slide 32: Crude oil price and exchange rate assumptions and impact on profits

    Revised Full Year Forecast Crude oil price and exchange rate assumptions and impact on profits [3Q-4Q] FY2012 FY2013 1H (a) 2H (a) Full (a) 1Q (a) 2Q (a) 3Q (e) 4Q (e) 1-4Q (e) JCC price USD/bbl 112.38 112.48 112.43 124.11 106.79 115.00 100.00 112.08 Exchange rate Yen / USD 81.07 77.17 78.93 81.26 7

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