Japan Petroleum Exploration (1662) Q2 2025 earnings summary

Executive summary

• Net sales rose 21.8% year-over-year to ¥183,606 million for the six months ended September 30, 2024, driven by higher crude oil sales in North America and Europe.

• Operating profit increased 0.9% year-over-year to ¥28,771 million, while ordinary profit declined 34.0% to ¥25,815 million due to a reversal from equity method profit to loss and foreign exchange losses.

• Profit attributable to owners of parent fell 23.9% year-over-year to ¥21,139 million.

Financial highlights

• Gross profit increased 7.4% year-over-year to ¥46,495 million.

• Basic earnings per share for the period was ¥81.46, reflecting a 5-for-1 stock split effective October 1, 2024.

• Total assets as of September 30, 2024, were ¥679,925 million, up ¥18,996 million from March 31, 2024.

• Net assets increased to ¥543,425 million, with an equity ratio of 75.0%.

Outlook and guidance

• Full-year net sales forecast revised to ¥364,000 million, up 11.7% year-over-year.

• Operating profit forecast at ¥55,400 million (+0.3%), ordinary profit at ¥54,200 million (-21.2%), and profit attributable to owners of parent at ¥78,500 million (+46.3%).

• Basic earnings per share for the year projected at ¥304.43, reflecting the stock split.

• Gain on sale of investment securities (~¥42 billion) expected to be recorded in FY ending March 31, 2025.