Japan Petroleum Exploration : Consolidated Financial Results for the Fiscal Ended March 31, 2026(527.2 KB)

May 13, 2026

Note: The following report is a summary of the Japanese-language original.

Company name: Japan Petroleum Exploration Co., Ltd. Listing: Prime Market, Tokyo Stock Exchange Securities code: 1662

URL: https://www.japex.co.jp/en/

Representative: YAMASHITA Michiro, Representative Director and President

Inquiries: MATSUMOTO Akinori, General Manager, Corporate Communication Office Telephone: +81-3-6268-7111 (from overseas)

Scheduled date of ordinary general shareholders’ meeting: June 23, 2026 Scheduled date to commence dividend payments: June 24, 2026

Scheduled date to file Securities Report: June 19, 2026 Presentation of supplementary material on financial results: Yes

Holding of financial results presentation meeting (for institutional investors and analysts): Yes

(Millions of yen with fractional amounts discarded, unless otherwise noted)

1. Consolidated financial results for the fiscal year ended March 31, 2026 (April 1, 2025–March 31, 2026)

   1. Consolidated operating results (Percentages indicate year-on-year changes.)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Fiscal year ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      March 31, 2026	340,336	(12.5)	38,915	(37.2)	61,556	(4.1)	53,427	(34.2)
      March 31, 2025	389,082	19.4	62,012	12.2	64,221	(6.7)	81,153	51.2

      Note: Comprehensive income: FY2026/3: 114,794 million yen (121.0%) FY2025/3: 51,939 million yen ((51.9)%)

      	Basic earnings per share	Diluted earnings per share	Return on equity	Ratio of ordinary profit to total assets	Ratio of operating profit to net sales
      Fiscal year ended	Yen	Yen	%	%	%
      March 31, 2026	208.74	-	9.2	8.0	11.4
      March 31, 2025	314.91	-	15.7	9.6	15.9

      Reference: Equity in earnings (losses) of affiliates: FY2026/3: 4,114 million yen FY2025/3: (252) million yen

      Note: JAPEX conducted a 5-for-1 stock split of shares of common stock on October 1, 2024. Basic earnings per share were calculated assuming that the share split was conducted at the beginning of the previous fiscal year.

   2. Consolidated financial position

      	Total assets	Net assets	Equity ratio	Net assets per share
      	Millions of yen	Millions of yen	%	Yen
      As of March 31, 2026	862,470	658,897	72.8	2,451.33
      As of March 31, 2025	681,598	557,257	77.4	2,062.21

      Reference: Equity As of March 31, 2026: 627,537 million yen As of March 31, 2025: 527,744 million yen

   3. Consolidated cash flows

   	Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at end of period
   Fiscal year ended March 31, 2026 March 31, 2025	Millions of yen 102,976 130,766	Millions of yen (200,494) (107,076)	Millions of yen 6,007 (38,671)	Millions of yen 49,954 140,931

2. Cash dividends

   	Annual dividends					Total annual cash dividends	Dividend payout ratio (consolidated)	Ratio of dividends to net assets (consolidated)
   	First quarter	Second quarter	Third quarter	Fiscal year-end	Annual
   	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
   Fiscal year ended March 31, 2025	-	125.00	-	30.00	-	14,114	17.5	2.8
   Fiscal year ended March 31, 2026	-	20.00	-	45.00	65.00	16,689	31.1	2.9
   Fiscal year ending March 31, 2027 (Forecast)	-	22.50	-	22.50	45.00		19.2

   Note: JAPEX conducted a 5-for-1 stock split of shares of common stock on October 1, 2024. The year-end dividend per share for the fiscal year ended March 31, 2025 is stated after considering the effect of such the stock split, and the total annual dividend is expressed as “–.” If the stock split is not considered, the year-end dividend for the fiscal year ended March 31, 2025 would be 150.00 yen, and the total annual dividend would be 275.00 yen.

3. Consolidated financial forecasts for the fiscal year ending March 31, 2027 (April 1, 2026–March 31, 2027)

(Percentages indicate year-on-year changes.)

* Notes

1. Significant changes in the scope of consolidation during the fiscal year under review: Yes

   New inclusion: two companies (Peoria Resources, LLC, Verdad Resources Intermediate Holdings LLC) Exclusion: two companies (JAPEX UK E&P LIMITED, Japex Energy Co., Ltd.)

2. Changes in accounting policies, changes in accounting estimates, and restatement

   1. Changes in accounting policies due to revisions to accounting standards and other regulations: None

   2. Changes in accounting policies due to other reasons: None

   3. Changes in accounting estimates: Yes

   4. Restatement: None

      Note: For details, please refer to “(5) Notes to consolidated financial statements (Notes on changes in accounting estimates)” of “3.

      Consolidated financial statements and significant notes thereto” on page 18 of the attached material.

3. Number of issued shares (common shares)

   1. Total number of issued shares at the end of the period (including treasury shares)

      As of March 31, 2026 257,000,380 shares

      As of March 31, 2025 257,000,380 shares

   2. Number of treasury shares at the end of the period

      As of March 31, 2026 1,000,978 shares

      As of March 31, 2025 1,087,980 shares

   3. Average number of shares outstanding during the period

Fiscal year ended March 31, 2026 255,951,343 shares

Fiscal year ended March 31, 2025 257,705,383 shares

Note: JAPEX conducted a 5-for-1 stock split of shares of common stock on October 1, 2024. Average number of shares outstanding during the period was calculated assuming that the share split was conducted at the beginning of the previous fiscal year.

Non-consolidated financial results for the fiscal year ended March 31, 2026 (April 1, 2025–March 31, 2026)

1. Non-consolidated operating results (Percentages indicate year-on-year changes.)

   	Net sales		Operating profit		Ordinary profit		Profit
   Fiscal year ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
   March 31, 2026	190,487	(8.0)	16,660	(41.1)	35,505	(14.3)	37,923	(48.7)
   March 31, 2025	206,952	8.9	28,263	(22.2)	41,413	(24.4)	73,856	57.6

   	Basic earnings per share	Diluted earnings per share
   Fiscal year ended March 31, 2026 March 31, 2025	Yen 148.17 286.59	Yen - -

   Note: JAPEX conducted a 5-for-1 stock split of shares of common stock on October 1, 2024. Basic earnings per share were calculated assuming that the share split was conducted at the beginning of the previous fiscal year.

2. Non-consolidated financial position

Reference: Equity As of March 31, 2026: 540,669 million yen As of March 31, 2025: 450,954 million yen

• Financial results reports are not required to be audited by certified public accountants or an audit corporation.

• Proper use of financial forecasts, and other special matters

The forward-looking statements, including the financial forecasts shown in this document are based on information currently available to our Company and on certain assumptions deemed to be reasonable. As such, they do not constitute guarantees by our Company of future performance. Actual performance and other results may differ materially from these forecasts due to various factors.

For the suppositions that form the assumptions for financial forecasts and cautions concerning the use thereof, please refer to the section of “(4) Future outlook” of “1. Overview of operating results and others” on page 7 of the attached material to the financial results report.

(Attached Material)

1. Overview of operating results for the fiscal year under review

   In the fiscal year ended March 31, 2026, the Japanese economy was on a gradual recovery path, supported by improvements in employment and income conditions and the effects of various policy measures, despite concerns that continued price increases and the impact of U.S. trade policy might put downward pressure on the Japanese economy.

   The Japan Crude Cocktail (JCC) price stood in the upper $70s range per barrel at the beginning of the fiscal year and trended downward in the first half of the fiscal year amid concerns that U.S. tariff policies could slow the global economy and the easing of production cuts by oil-producing countries. Subsequently, although the JCC price rose temporarily in the middle of the fiscal year, it fell again toward the second half of the year due to growing signs of easing in global oil supply-demand conditions, reaching the mid-$60 range in February. It then rebounded sharply as tensions in the Middle East intensified, causing disruptions to oil supplies, and reached the upper $60 range toward the end of the fiscal year.

   In the currency exchange market, the yen started the fiscal year hovering around the upper ¥140/US$ level and temporarily strengthened during the first half of the fiscal year, but it depreciated toward the end of the fiscal year and was in the upper ¥150/US$ level at the end of the fiscal year.

   In the domestic natural gas market, rising awareness of cost containment due to soaring prices led to a decline in gas demand. In addition to this, competition continued in the overall energy industry as it has in the past, making the market environment challenging for the JAPEX Group. Furthermore, in the domestic electricity market, spot market prices on the Japan Electric Power Exchange (JEPX) remained at the same level as the previous year, as fuel import prices remained relatively stable.

   Under these circumstances, based on “JAPEX2050: Toward a Carbon-Neutral Society” (“JAPEX2050,” announced in May 2021), which outlines our policy on how to respond to the trend toward decarbonization, JAPEX has been working to strengthen profitability and to build a business foundation with a view to growth 2030 and beyond in accordance with “JAPEX Management Plan 2022–2030” formulated in March 2022.

   Consequently, JAPEX has achieved its key targets for FY2026 ahead of schedule, in terms of profit levels and shareholder returns. However, from the perspective of building business assets that contribute to sustainable growth, the goal has not been fully achieved.

   Furthermore, in the global energy landscape, while decarbonization targets remain in place, the importance of stable supply of energy is being reaffirmed, and a more realistic transition is being sought. Furthermore, capital markets are placing even stronger demands on “management that is mindful of the cost of capital.”

   In light of our current situation and changes in the external environment, JAPEX has determined that a new management plan is essential to build a resilient portfolio and strengthen our execution capabilities.

   Accordingly, we announced the “JAPEX Management Plan 2026–2035 — Building Core Assets toward 2035” (“JAPEX Management Plan 2026–2035”) in April 2026.

   We continue to aim to further enhance our corporate value by steadily implementing the Plan.

   During the fiscal year, net sales was ¥340,336 million, a decrease of ¥48,745 million (−12.5%) year on year. Gross profit was ¥76,741 million, a decrease of ¥22,416 million (−22.6%) year on year. Main factors behind the year-on-year decrease for net sales and gross profit include a decrease in the selling prices of crude oil and natural gas, and a decrease in sales volume for LNG.

   Exploration expenses was ¥1,965 million, a decrease of ¥1,206 million (−38.0%) year on year. Selling, general and administrative expenses was ¥35,860 million, an increase of ¥1,888 million (+5.6%) year on year. As a result, operating profit was ¥38,915 million, a decrease of ¥23,097 million (−37.2%) year on year.

   Ordinary profit was ¥61,556 million, a decrease of ¥2,664 million (−4.1%) year on year, mainly due to the decrease in operating profit, despite improvements in non-operating items, including turnarounds from a share of loss of entities accounted for using equity method to a share of profit and from foreign exchange losses to foreign exchange gains.

   Profit before income taxes decreased by ¥45,056 million (−41.5%) year on year to ¥63,557 million, mainly due to the absence of gain on sale of investment securities recorded in the previous fiscal year. Profit attributable to owners of parent decreased by ¥27,725 million (−34.2%) year on year to ¥53,427 million.

   Below is a breakdown of net sales.

   1. E&P Business

      Net sales from the E&P Business came to ¥109,257 million, a decrease of ¥19,755 million (−15.3%) year on year, mainly due to the decline in crude oil prices.

   2. Infrastructure/Utility Business

      Net sales from the Infrastructure/Utility Business came to ¥172,349 million, a decrease of ¥16,829 million (−8.9%) year on year. This was mainly the result of a decrease in sales volume for LNG.

   3. Other Businesses

      Net sales from other businesses, such as contract services (drilling and geological surveys, etc.), sale of oil products, including liquefied petroleum gas (LPG), fuel oil and the like, as well as other subcontracted tasks, came to ¥58,730 million, a decrease of ¥12,160 million (−17.2%) year on year.

      Below is a summary of performance by segment (before elimination of intersegment transactions).

      1. Japan

         Net sales in the Japan segment are mainly composed of crude oil, natural gas (including LNG), electricity, contract services, oil products and the like. In the fiscal year under review, net sales came to ¥248,194 million, a decrease of ¥31,711 million (−11.3%) year on year, mainly due to the decrease of sales volume for LNG. Segment profit decreased by ¥14,115 million (−31.4%) year on year to ¥30,869 million, mainly due to a decrease in crude oil prices and deterioration in balance of sales revenue for crude oil and natural gas (including LNG) resulting from the yen’s appreciation compared with the previous fiscal year.

      2. North America

         Net sales in the North America segment are mainly composed of crude oil and natural gas. In the fiscal year under review, net sales came to ¥52,377 million, a decrease of ¥3,328 million (−6.0%) year on year, mainly due to a decrease in the selling prices of crude oil. Segment profit, like net sales, decreased by ¥4,017 million (−19.0%) year on year to ¥17,082 million, mainly due to a decrease in the selling prices of crude oil.

      3. Europe

         Net sales in the Europe segment are mainly composed of crude oil and natural gas. In the fiscal year under review, net sales came to ¥8,072 million, a decrease of ¥11,109 million (−57.9%) year on year, mainly due to the decrease of sales volume for crude oil and natural gas resulting from the transfer of all shares in JAPEX UK E&P LIMITED held by JAPEX. Segment profit decreased by ¥3,966 million (−70.9%) year on year to ¥1,626 million.

      4. Middle East

Net sales from the Middle East segment are composed of crude oil. In the fiscal year under review, net sales came to ¥31,692 million, a decrease of ¥2,619 million (−7.6%) year on year, mainly due to a decrease in the selling prices of crude oil. Segment profit decreased by ¥1,186 million (−28.6%) year on year to ¥2,968 million.