Japan Petroleum Exploration Co., Ltd. TSE:1662

Japan Petroleum Exploration : Financial Results for the Fiscal Year Ended March 31, 2026 (1.8 MB)

Published May 13, 2026 at 5:17 a.m. UTC

Source: MarketScreener

[Explanatory Material] Financial Results for the Fiscal Year Ended March 31, 2026

May 13, 2026

Japan Petroleum Exploration Co., Ltd.

Note: This document has been translated from the Japanese original for reference purposes only.

In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

Contents

Financial Highlights and Business Progress
Initiatives for Sustainable Growth and Medium- to Long-term Enhancement of Corporate Value
Financial Results for the Fiscal Year Ended March 31, 2026
Financial Forecasts for the Fiscal Year Ending March 31, 2027

Note: This material also serves as the presentation material for the financial results briefing for the institutional investors and analysts to be held on May 14, 2026.

Financial Highlights and Business Progress
Initiatives for Sustainable Growth and Medium- to Long-term Enhancement of Corporate Value
Financial Results for the Fiscal Year Ended March 31, 2026
Financial Forecasts for the Fiscal Year Ending March 31, 2027

FY3/26 Results（Year-on-Year）

(Billion Yen)	FY3/25 (a)	FY3/26 (a)	Change
Operating profit	62.0	38.9	(23.0)
Ordinary profit	64.2	61.5	(2.6)
Profit attributable to owners of parent	81.1	53.4	(27.7)
(Reference) Profit attributable to owners of parent, basis for calculating the consolidated dividend payout ratio of 30%	47.6	53.4	＋5.8

Operating profit： Decline in crude oil and natural gas sales prices/ Decrease in LNG sales volume (-)

Profit attributable to owners of parent： Absence of gains on sales of investment securities (-)

FY3/27 Forecasts（Year-on-Year）

(Billion Yen)	FY3/26 (a)	FY3/27 (f)	Change
Operating profit	38.9	41.0	+2.0
Ordinary profit	61.5	45.0	(16.5)
Profit attributable to owners of parent	53.4	60.0	+6.5
(Reference) Profit attributable to owners of parent, basis for calculating the consolidated dividend payout ratio of 30%	53.4	38.0	(15.4)

Operating profit： Increase in crude oil and natural gas sales volume in the U.S. (+); Impact of the Strait of Hormuz blockade [See next page] (-)
Ordinary profit ： Absence of 8.2 billion yen in foreign exchange gains and 7.6 billion yen in derivative gains (-)
Profit attributable to owners of parent：Gain on sale of Hokkaido gas business [Extraordinary gain: 31.0 billion yen; Impact on net income:
22.0 billion yen] (+)
Shareholder Returns
FY3/26 dividend per share: Interim 20 yen and Year-end 45 yen
FY3/27 dividend per share (forecast): Interim 22.50 yen and Year-end 22.50 yen

Ⅰ. Financial Highlights and Business Progress

Financial Highlights

Assumptions

Q1 oil price: $90/bbl, exchange rate: 158 yen/USD; stabilization from Q2 onwards
Normalizing LNG supply will take time even after the Strait of Hormuz blockade is lifted; JKM and JLC to remain high in the first half
Timing for resuming operations at the Garraf oil field is currently unforeseeable; production and shipments suspended for the full year
Operating Profit Impact

The shift to LNG spot procurement due to the Strait of Hormuz blockade (Table d, right) and the suspension of production at the Garraf oil field (Table e, right) are major factors behind the significant decrease in profit.

A total negative impact of 7.2 billion yen has been factored into the earnings forecast.

(E&P-Japan: +3.5 billion yen, E&P-Overseas: +1.4 billion yen, I/U: -12.1 billion yen)

			Apr.-Jun.	Jul.-Sep.	Oct.-Dec.	Jan.-Mar.
Cude oil	JCC,Brent	USD/bbl	90	70	70	70
Cude oil	WTI	USD/bbl	90	65	65	-
LNG	JKM	USD/MMBtu	18	18	12	12
LNG	JLC	JPY/ton	93,700	103,000	84,700	83,300
Exchange rate		JPY/USD	158	150	150	150

JKM: Benchmark price for spot LNG trading JLC: All-Japan average LNG import price

Other Impacts

Billion yen (+:Positive impact / ():Negative impact)

E&P-

Japan

E&P-

Overseas

I/U

Increase in crude oil profit due to upside in Q1 oil prices and exchange rates
Increase in natural gas and electricity profit due to JKM and JLC remaining high in the first half
Increase in LNG procurement costs due to higher Q1 oil prices (Term contracts)
Increase in LNG procurement costs due to alternative procurement (Spot procurement)
Decrease in remuneration crude oil due to full-year

production suspension at the Garraf oil field

+1.1

+2.4

+5.3

(3.9)

+7.0

(3.5)

(15.6)

Total

+3.5

+1.4

(12.1)

Suspension of shipments from the Garraf oil field resulted in a delay in the recovery of past investments (Decrease in net sales, delay in recovery of the "Cost Recovery Account" in operating cash flow)
Petroleum and chemical products (fuel oil, methanol, etc.) are not factored into the estimates, as the required volumes are currently secured.

Risk of leading to increased operating expenses if supply tightness becomes prolonged.

Ⅰ. Financial Highlights and Business Progress

Escalating Middle East Tensions: Impact on FY2027/3 Earnings Forecast