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

Japan Petroleum Exploration — H1 FY2015 Earnings Presentation

32 slides from Japan Petroleum Exploration's earnings presentation, Nov 10, 2014

  1. Slide 1: Presentation of Consolidated Financial Results for the Six Months Ended September 30, 2014

    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, 2014 November 10 , 2014 Japan Petroleum Exploration Co., Ltd.

  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, 2014 Executive Officer Michiro Yamashita ３．Revised Full Year Estimates for the Fiscal Year Ending March 31, 2015 Executive Officer Michiro Yamashita 3

  4. Slide 4: 1. Business Overview

    1.Business Overview President Osamu Watanabe 4

  5. Slide 5: Trends in Crude Oil Prices and Foreign Exchange Rate

    Trends in Crude Oil Prices and Foreign Exchange Rate $130 ¥130 $125 crude oil price US$/bbl（left axis） ¥125 [foreign exchange rate: JP¥/US$] $120 ¥120 $115 ¥115 [crude oil price:US$/bbl] $110 ¥110 $105 ¥105 $100 ¥100 $95 ¥95 $90 ¥90 $85 ¥85 $80 ¥80 Exchange rate ¥/$(right axis) $75 ¥75 $70 ¥70 2011-

  6. Slide 6: Revised Estimates for FY2015 (Highlight)

    Revised Estimates for FY2015 (Highlight) FY2014 FY2015 Change Initial Initial Revised Billion ￥ Estimate 1H (a) Estimate Estimate 1H Full Full 1H(e) ② Full (e) Full (e) （②-①） （④-③） (a) May12’14① Nov.7’14④ May12’14③ Net sales 276.5 157.5 146.8 323.6 324.3 ▲10.6 +0.7 Operating income 24.6 14.3 15.1 33

  7. Slide 7: Domestic exploration: Result for 1H & Plan for 2H

    Domestic exploration: Result for 1H & Plan for 2H ● 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（5,897m） Akebono 5,897m SK-6bH Fukumezawa 1 SK-26D/26DH 2,261 m Fukumezawa SK-26D/26DH（2,261m） (Horizontal Drilling) (Fracturing) ■ Geophysical prospecti

  8. Slide 8: Enforcement of Domestic Profit

    Enforcement of Domestic Profit Tight oil development in Akita Prefecture Ayukawa oil & gas field： April 1, 2014- Started commercial production Akita ⇒ striving to obtain knowledge about the tight formation in ● Ayukawa oil & gas field Tokyo Fukumezawa oil field： Perform in horizontal well drilling a

  9. Slide 9: Enforcement of Domestic Natural Gas Soma LNG terminal

    Enforcement of Domestic Natural Gas Soma LNG terminal ■Soma LNG terminal Facilities 1.Applicable law Gas Business Act 2.Lot area Site area Around 20ha Initially: PC type 230,000kl one storage Capacity 3. Storage (Future will have space of expansion) LNG property Available: Light LNG of receiving 4.R

  10. Slide 10: Overseas Business: Focusing Areas

    Overseas Business : Focusing Areas 5. Shale Gas/LNG Project (production of natural gas/planning of LNG plant) 3.Sakhalin 1 Project 4.Oil sands development (production & development) (production & development) UK North Sea Block (Exploration) U.K. / Norway Canada Sakhalin Shale oil Middle East (produ

  11. Slide 11: 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

  12. Slide 12: 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

  13. Slide 13: 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

  14. Slide 14: 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 100％ interest Cumulative production of Calgary 31.99 million bbl around 6,000 bbl/d (as of end-August, F

  15. Slide 15: 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） Calgary Block/ North Montney, Lelu Island, Candidate site of British Columbia, the Port of Prince Prince Rupert LNG plant Canada Rupert, B.C. （Propo

  16. Slide 16: Environment and Innovative Technology Business

    Environment and Innovative Technology Business Geothermal Energy Solar Power Business Business ● Musadake area ● ● （Shibetsu Town） Tomakomai mega-solar power station at Japex Hokkaido district office Drilling operation of Musadake area CCS Methane Hydrate ● Mt. Bandai area Photo provided by JOGMEC P

  17. Slide 17: Timeline of Projects & Finance Plan

    Timeline of Projects & Finance Plan After FY2016 Finance FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 Oil sand ◆Commence production HE development    Canada LNG Increase production gradually Upstream Gas development   Canada LNG Pre-FID ◆FID (end of 2014) ◆Commence Liquefied Business LNG productio

  18. Slide 18: 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 1% YOY. Main r

  19. Slide 19: 2. Consolidated Financial Results for the Six Months Ended September 30, 2014

    1H Result 2.Consolidated Financial Results for the Six Months Ended September 30, 2014 Executive Officer Michiro Yamashita 19

  20. Slide 20: Actual Financial Results for 1H FY2015 (Summary)

    1H Result Actual Financial Results for 1H FY2015 (Summary) FY2015 change Billion ￥ Billion ￥ FY2014 FY2015 vs Initial Billion ￥ 1H (e) 175 35 Estimate Net Sales (left axis) 1H (a) 1H (a) (May12 ‘14) % 157.5 ▲6% 146.8 Net Sales 120.2 157.5 146.8 150 30 +5% Operating income 11.5 14.3 15.1 120.2 125 ri

  21. Slide 21: Actual Sales of Natural Gas in 1H FY2015 (vs FY2014)

    1H Result Actual Sales of Natural Gas in 1H FY2015 (vs FY2014 ) Overseas produced gas Sales volume : Million M3 FY2014 FY2015 change Million M3 Domestically produced gas Net sales : Million ￥ 1H (a) 1H (a) 600 Sales 614 775 +160 196 volume Natural gas 37 Net sales 31,883 37,458 +5,575 400 Breakdown

  22. Slide 22: Actual Sales of Crude Oil in 1H FY2015 (vs FY2014)

    1H Result Actual Sales of Crude Oil in 1H FY2015 ( vs FY2014 ) Sales volume : Thousand KL FY2014 FY2015 change Net sales : Million ￥ 1H(a) 1H(a) Sales volume 877 1,107 +230 Crude oil: Net sales 53,919 73,500 +19,581 Breakdown of equity oil Domestically Sales volume 188 190 +2 produced crude oil: Net

  23. Slide 23: Actual Financial Results for 1H FY2015 (vs FY2014)

    1H Result Actual Financial Results for 1H FY2015 (vs FY2014) FY2014 FY2015 Causes of increase(+) or decrease(▲) [ Million ￥] Change 1H(a) 1H(a) Gross profit Net sales 120,281 146,850 +26,568 Domestic crude oil and natural gas ▲¥0.8billion Overseas consolidated Gross profit 32,161 34,515 +2,354 subsi

  24. Slide 24: 3. Revised Full Year Estimates for the Fiscal Year Ending March 31, 2015

    Full Year Estimates 3.Revised Full Year Estimates for the Fiscal Year Ending March 31, 2015 Executive Officer Michiro Yamashita 24

  25. Slide 25: Revised Estimates in FY2015 (Summary)

    Revised Full Year Estimates Revised Estimates in FY2015 (Summary) Initial Revised Change Estimate Estimate Billion￥ Billion￥ [Billion ￥] Full(e) Full(e) change VS Initial Net Sales (left axis) Estimat (%) 350.0 60.0 May12’14 Nov.7’14 323.6 324.3 Net Sales 323.6 324.3 +0.7 +0% right axis Operating in

  26. Slide 26: Revised Estimated Natural Gas Sales in FY2015 (vs Initial Estimate)

    Revised Full Year Estimates Revised Estimated Natural Gas Sales in FY2015 (vs Initial Estimate) Overseas produced gas Initial Estimate Revised Estimate Million M3 Sales volume : Million M3 Domestically produced gas Full(e) Full(e) change Net sales : Million ￥ 1,400 May12’14 Nov.7’14 1,200 Sales 1,68

  27. Slide 27: Revised Estimated Crude Oil Sales in FY2015 (vs Initial Estimate)

    Revised Full Year Estimates Revised Estimated Crude Oil Sales in FY2015 (vs FY2015) Initial Estimate Revised Estimate Sales volume : Thousand KL Full(e) Full(e) change Net sales : Million ￥ May12’14 Nov.7’14 Sales volume 2,695 2,517 ▲178 Crude oil: Net sales 158,248 152,258 ▲5,990 Breakdown of equit

  28. Slide 28: Revised Estimate for FY2015 (vs Initial Estimate)

    Revised Full Year Estimates Revised Estimate for FY2015 (vs Initial Estimate) Initial Estimate Revised Estimate Causes of increase(+) or decrease( ▲) Million ￥ Full(e) Full(e) change May12’14 Nov.7’14 Gross profit Domestic crude oil and natural gas +¥1.3billion Net sales 323,633 324,378 +745 Oversea

  29. Slide 29: Revised Estimated Natural Gas Sales in FY2015 (vs FY2014)

    Revised Full Year Estimates Revised Estimated Natural Gas Sales in FY2015 (vs FY2014) FY 2015 Million M3 Overseas produced gas 1,400 Sales volume Revised Sales volume : Million M3 FY 2014 Domestically produced gas Estimate Change Sales volume Net sales: Million ￥ Full(a) Full(e) 1,200 Nov.7’14 Sales

  30. Slide 30: Revised Estimated Crude Oil Sales in FY2015 (vs FY2014)

    Revised Full Year Estimates Revised estimated crude oil sales in FY2015 (vs FY2014) FY 2015 Sales volume: Thousand KL Net FY 2014 Change Revised Estimate Full(e) sales: Million Yen Full(a) (VS FY2014) Nov.7’14 Sales volume 1,902 2,517 +615 Crude oil: Net sales 119,370 152,258 +32,887 Breakdown of eq

  31. Slide 31: Revised Estimates for FY2015 (vs FY2014)

    Revised Full Year Estimates Revised Estimates for FY2015 (vs FY2014) FY 2015 Causes of increase(+) or decrease( ▲) FY 2014 Revised Million ￥ change Gross profit Full(a) Estimate Full(e) Domestic crude oil Nov.7’14 and natural gas +¥1.6billion Overseas consolidated Net sales 276,588 324,378 +47,789 s

  32. Slide 32: Crude Oil Price and Exchange Rate Assumptions and Impact on Profits

    Crude oil Price and Exchange Rate Assumptions and Impact on Profits [3Q-4Q] FY2014 FY2015 1H (a) 2H (a) 1Q-4Q(a) 1stQ(a) 2ndQ(a) 3rdQ(e) 4thQ(e) 1Q-4Q(e) JCC price US$/bbl 108.53 112.33 110.51 109.51 110.70 100.00 85.00 101.27 Exchange JP¥/US$ 97.58 100.84 99.31 102.27 101.96 105.00 105.00 103.43 ra

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