Japan Petroleum Exploration Co., Ltd. · TSE:1662
Japan Petroleum Exploration — FY2016 Earnings Presentation
37 slides from Japan Petroleum Exploration's earnings presentation, May 13, 2016
Slide 1: Presentation Meeting of Consolidated Financial Results for the Fiscal Year Ended March 31, 2016
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, 2016 (FY3/16) May 13 , 2016 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 Ⅰ. Business Overview President Osamu Watanabe Ⅱ. Actual Results for FY3/16 Executive Officer Michiro Yamashita Ⅲ. Estimates for FY3/17 Executive Officer Michiro Yamashita 3
Slide 4: Ⅰ. Business Overview
Ⅰ. Business Overview President Osamu Watanabe 4
Slide 5: Trends in Crude Oil Prices and Foreign Exchange Rate
［Crude Oil Price US$/bbl] $30 $40 $50 $60 $70 $80 $90 $100 $110 $120 2013-03 2013-04 2013-05 2013-06 2013-07 2013-08 2013-09 2013-10 2013-11 2013-12 2014-01 2014-02 2014-03 2014-04 2014-05 2014-06 2014-07 2014-08 5 2014-09 Crude Oil price US$/bbl (Left axis) 2014-10 2014-11 2014-12 2015-01 2015-02 2
Slide 6: Actual Results for FY3/16 and Estimate for FY3/17 (Highlight)
Actual Results for FY3/16 and Estimate for FY3/17 (Highlight) ■ Actual Results for FY3/16 (vs FY3/15) Billion ¥ Billion ¥ 350.0 70.0 Billion JP¥ FY3/15 FY3/16 Change (a) (a) 304.9 Net Sales 304.9 240.3 -64.6 -21% Net Sales (Left Axis) 300.0 60.0 Operating Income 32.1 8.3 -23.8 -74% 240.3 Ordinary In
Slide 7: 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” If we liken our business into a tree, E&P business will be “root” and “trunk”, and we will grow each business around E&
Slide 8: Perception of Business Environment: External Environment
＜Follow-Up of the Mid-Term Business Plan＞ Perception of Business Environment ①External Environment Perception at the Mid-Term Business Plan (Summary) ① Actualized fluctuation risk of international crude oil price ② Geopolitical Risk ③ Intensifying competition of domestic gas business ④ Measure for
Slide 9: Perception of Business Environment: Oil Price/Exchange Rate
＜Follow-Up of the Mid-Term Business Plan＞ Perception of Business Environment ②Oil Price/Exchange Rate Revision of Oil Price and Exchange Rate Forecast based on the decline of oil prices from the time plan has been unveiled. We are estimating slower recovery of oil prices Positive Factors 120 • D
Slide 10: Progress situation: Current status of ongoing projects
＜Follow-Up of the Mid-Term Business Plan＞ Progress situation ①Current status of ongoing projects E&P business Domestic supply business ＜Most important mission＞ ＜Most important mission＞Overseas Establish comprehensive supply system of natural gas. Steady management of ongoing projects "Supply", “
Slide 11: Progress situation: Action plan under the low oil price
＜Follow-Up of the Mid-Term Business Plan＞ Progress situation ②Action plan under the low oil price Risk analysis in the case of low oil & gas prices. Conducting a thorough cost reduction. Canada Oil Sands Production Canada LNG 開 Pre-FID 発 準 備 中 Hangingstone 3.75 section and Sales Upstream Gas Explo
Slide 12: Progress situation: Timeline of major projects
＜Follow-Up of the Mid-Term Business Plan＞ Progress situation ③Timeline of major projects Transition of capital investment and depreciation FY3/16 FY3/17 FY3/18 FY3/19 FY3/20 FY3/21 Billion ¥ Billion ¥ 1,500 150 200 20 Canada Oil Sands ◆ ◆ (Under construction) Commencement of production 16.8 17.0 15.
Slide 13: Transition of production volume and proved reserves
＜Follow-Up of the Mid-Term Business Plan＞ Progress situation ④Transition of production volume and proved reserves Actual result on FY3/16; 73,000BOED / 349MMBOE 1% decrease in production volume. While Canada shale gas production volume has increased, domestic production was declining and economi
Slide 14: Profit Outlook and Shareholder Return
＜Follow-Up of the Mid-Term Business Plan＞ Profit Outlook and Shareholder Return Due to the sharp decline of oil price, consolidated profit and loss in FY3/16 has decreased significantly. Outlook also FY3/17 remains at a low level. Maintaining the stable shareholder return in a low oil price envi
Slide 15: CSR – Promotion priority agenda “SHINE”
＜Follow-Up Our Mid-Term Business Plan＞ CSR – Promotion priority agenda “SHINE” S ：Stable & Sustainable Energy Supply H ：HSE as Our Culture I ：Integrity & Governance We are implementing core CSR policies, expressed with the acronym SHINE, to grow as a trusted global N ：Being a Good Neighbor company b
Slide 16: E&P Business: Domestic exploration
＜Appendix＞ E&P Business ① Domestic exploration: Result for FY3/16 & Plan for FY3/17 ● Drilling work FY3/16 Total 1Q 2Q 3Q 4Q Depth 4 5 6 7 8 9 10 11 12 1 2 3 Minami- Kashiwazaki 2,900m abandon SK-1D (Exploratory Well) ■ Geophysical prospecting survey work FY3/16 Nagaoka and Ojiya-city, Niigata pref.
Slide 17: E&P Business: Current status of global business
＜Appendix＞ E&P Business ② Current status of global business Oil Sands project (Temporary suspension of Sakhalin production / Development) U.K./Norway Sakhalin 1 project Shale Gas/LNG project (Production of natural gas / U.K. North Sea Block (Production & Development) planning of LNG plant) (Explorat
Slide 18: E&P Business: Canada Shale Gas and LNG project
＜Appendix＞ E&P Business ③ Canada Shale Gas and LNG project Shale Gas development LNG project and Production project (Up-stream) (Middle-stream) Calgary North Montney Area, Lelu Island, Block / British Columbia, The Port of Prince Proposed site Canada Rupert, B.C. Prince Rupert North Montney (Propose
Slide 19: E&P Business: 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 3.75 section Temporary suspension of the production FORT McMURRAY Area 100％ Interests (Cumulative production： Approximately 5,000 b
Slide 20: E&P Business: 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 Garraf oil field Field Garraf In Production Samawah 2013 2030 Nasiriyah Expected cumulative production : Basrah Around 1.1 billion bbl ■ Time Schedule First o
Slide 21: E&P Business: 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 Sepanｊang Island oil field Java Island (Production suspended) TSB gas field Bali Island （Production-p
Slide 22: E&P Business: Sakhalin 1 project
＜Appendix＞ E&P Business ⑦ Sakhalin 1 project Sakhalin Oil and Odoptu Project Gas Development Co., Ltd. Company (SODECO) Equity-method affiliate Interest Sakhalin 1 Consortium SODECO Minister of Arkutun-Dagi Economy, JAPEX Exxon Neftegas Ltd. Trade and 15.29% 30% Industry SODECO 50.00% Others 30% Oth
Slide 23: Domestic supply business: Construction of Soma LNG terminal
＜Appendix＞ Domestic supply business ① Construction of Soma LNG terminal ■Soma LNG terminal Facilities 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-going vessel ：Full set (maximum Receiving 210,000m
Slide 24: Domestic supply business: Soma power generation
＜Appendix＞ Domestic supply business ② Soma power generation ■Outline of the plan of Soma natural gas power plant (provisional name) Gas turbine and steam power Driving force (combined cycle system) Approximately 1.2 million kW Output power (approximately 600 thousand kW×2) Establishment of Fukushima
Slide 25: Environment and innovative technology
＜Appendix＞ Environment and innovative technology Geothermal, MH, CCS, Solar power CCS Geothermal power Mt. Musa area （Shibetsu Town） ● Tomakomai City ● ● ● Mt. Furebetsu south area （Kushiro City) Photo provided by Japan * Ongoing local negotiation. CCS Co., Ltd Facilities of CCS demonstration projec
Slide 26: Ⅱ. Actual Results for FY3/16
Ⅱ. Actual Results for FY3/16 Executive Officer Michiro Yamashita 26
Slide 27: Actual Results for FY3/16 (Highlight)
Actual Results Actual Results for FY3/16 (Highlight) FY3/16 billion JP¥ FY3/15 (a) Initial Estimate Revised Estimate Revised Estimate (e) (May.12, ‘15) (e) (Nov.6, ‘15) (e) (Feb.5, ‘16) (a) Net Sales 304.9 271.1 257.7 245.7 240.3 Operating Income 32.1 9.1 8.6 8.6 8.3 Ordinary Income 54.8 14.0 5.8 5.
Slide 28: Actual Sales of Natural Gas for FY3/16
Actual Results Actual Sales of Natural Gas for FY3/16 (year-on-year) Sales volume : Million M3 FY3/15 FY3/16 change Net sales : Million JP¥ 1H (a) Full (a) 1H (a) Full (a) 1H Full Sales volume 775 1,710 820 1,780 +45 +70 Natural gas Net sales 37,458 83,974 33,031 68,469 -4,427 -15,505 Breakdown Dome
Slide 29: Actual Sales of Crude Oil for FY3/16
Actual Results Actual Sales of Crude Oil for FY3/16 (year-on-year) Sales volume : Thousand KL FY3/15 FY3/16 change Net sales : Million JP¥ 1H (a) Full (a) 1H (a) Full (a) 1H Full Sales volume 1,107 2,396 1,480 3,233 +372 +837 Crude oil Net sales 73,500 133,346 57,148 102,918 -16,352 -30,428 Breakdow
Slide 30: Actual Results for FY3/16 (year-on-year)
Actual Results Actual Results for FY3/16 (year-on-year) FY3/15 FY3/16 Million JP¥ Change Causes of increase(+) or decrease(-) (a) (a) Gross profit Domestic crude oil and natural gas - ¥10.3 billion Net sales 304,911 240,302 -64,609 Overseas consolidated subsidiaries - ¥11.6 billion Gross profit 70,2
Slide 31: Ⅲ. Estimates for FY3/17
Ⅲ. Estimates for FY3/17 Executive Officer Michiro Yamashita 31
Slide 32: Revised Full Year Estimates for FY3/17: Assumptions
Estimates for FY3/17 Revised Full Year Estimates for FY3/17 [Assumptions for Crude Oil Prices and Exchange Rate] Upper: from January 2015 to March 2016. Lower: from January 2016 to March 2017. Full year Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec. Jan.-Mar. 2015(a) 48.70 57.75 46.50 42.03 48.75 WTI US$/b
Slide 33: Estimated Natural Gas Sales in FY3/17
Estimates for FY3/17 Estimated Natural Gas Sales in FY3/17 FY3/16 FY3/17 change Sales volume : Million M3 Net sales : Million JP¥ 1H (a) Full (a) 1H (e) Full (e) 1H Full Sales volume 820 1,780 871 1,811 +51 +31 Natural gas ： Net sales 33,031 68,469 24,889 54,607 -8,142 -13,862 Breakdown Domestic gas
Slide 34: Estimated Crude Oil Sales in FY3/17
Estimates for FY3/17 Estimated Crude Oil Sales in FY3/17 Sales volume : Thousand KL FY3/16 FY3/17 change Net sales : Million JP¥ 1H (a) Full (a) 1H (e) Full (e) 1H Full Sales volume 1,480 3,233 1,280 2,564 -200 -669 Crude oil Net sales 57,148 102,918 32,233 76,286 -24,915 -26,632 Breakdown Sales vol
Slide 35: Estimates for FY3/17
Estimates for FY3/17 Estimates for FY3/17 FY3/16 FY3/17 Million JP¥ Change Causes of increase(+) or decrease(-) (a) (e) Gross profit Net sales 240,302 194,575 -45,727 Domestic crude oil and natural gas - ¥8.6 billion Overseas consolidated subsidiaries - ¥5.9 billion Gross profit 47,279 30,547 -16,73
Slide 36: Assumptions and Impact on Profits
Estimates for FY3/17 Assumptions and Impact on Profits JCC price Exchange rate Canadian gas prices Assumptions 45.00 US$/bbl 115.00 JP¥ / US$ 1.88 CA$/mcf 1 US$/bbl increase in A weakening in 1 JP¥/US$ 1 CA$/mcf increase in FY3/17 JCC prices would push exchange rates would push Canadian gas prices w
Slide 37: Abbreviation
Abbreviation BOE(D) Barrels of Oil Equivalent (per Day) CCS Carbon dioxide Capture and Storage COP Conference Of the Parties CSR Corporate Social Responsibility E&P Exploration and Production FID Final Investment Decision GHG Greenhouse Gas HE Hangingstone Expansion HSE Health, Saf
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