Japan Petroleum Exploration (1662) Q1 2026 earnings summary

Executive summary

• Net sales for the three months ended June 30, 2025, were ¥82,844 million, down 7.4% year-over-year, mainly due to lower LNG sales volume, despite higher overseas crude oil and natural gas sales.

• Operating profit rose 29.0% year-over-year to ¥16,699 million, driven by increased gross profit and reduced exploration expenses.

• Profit attributable to owners of parent increased 36.7% year-over-year to ¥15,714 million.

Financial highlights

• Gross profit increased 13.7% year-over-year to ¥25,321 million.

• Ordinary profit rose 25.7% year-over-year to ¥20,810 million, aided by a reversal to share of profit from entities accounted for using equity method and gains on derivatives.

• Basic earnings per share for the quarter were ¥61.41, calculated post 5-for-1 stock split.

• Total assets as of June 30, 2025, were ¥677,635 million, down ¥3,962 million from March 31, 2025.

• Net assets decreased by ¥4,216 million to ¥553,040 million, mainly due to foreign currency translation adjustment.

Outlook and guidance

• Full-year net sales forecast for FY ending March 31, 2026, is ¥330,000 million, down 15.2% year-over-year.

• Operating profit forecast is ¥31,000 million (down 50.0%), ordinary profit ¥39,300 million (down 38.8%), and profit attributable to owners of parent ¥33,000 million (down 59.3%).

• Basic earnings per share for the year is projected at ¥128.95.

• Dividend forecast for FY2026 is ¥40.00 per share.