Financial results summary

(As of February 12, 2026)

During the year ended December 31, 2025, the Japanese economy held to a trajectory of moderate recovery, driven by improvements in the employment and income environments as well as the effects of various policies. However, it is necessary to remain cautious of risks that could lead to economic downturns, such as the impact of U.S. trade policies, the ongoing effects of rising prices on consumer spending, and international conflicts. In addition, there are continuing concerns about the impact of fluctuations in financial and capital markets, among others.
Of the international crude oil price indices, which significantly influence the financial performance of the Group, Brent crude (on a near-term closing price basis), considered a benchmark index for crude oil, started the current fiscal year in the mid-US$70s per barrel. There were instances of temporary price increases due to supply concerns stemming from U.S. sanctions on Iran and Russia. However, concerns over economic stagnation due to mutual tariffs such as U.S.-China tariff disputes, along with the gradual easing of voluntary production cuts by OPEC+, led to a downward trend throughout the year, with prices reaching US$60.85 per barrel at the end of the fiscal year. The Group’s average crude oil sales price for the year ended December 31, 2025 reflected this shift and fell to US$70.69 per barrel, down US$10.51 from the previous fiscal year.
The foreign exchange market, another important factor that affects the business of the Group, began to trade at around ¥157 against the U.S. dollar for the fiscal year ended December 31, 2025. In the first half of the year, the yen initially weakened to the ¥158 range in early January due to the wide Japan-U.S. interest rate gap, but then appreciated to the low ¥141 range in April amid global recession fears sparked by U.S. tariff policies. Although it rebounded following a U.S.-China agreement to reduce tariffs, the yen shifted back toward depreciation as the Bank of Japan held rates steady and Fed rate-cut speculation grew, ending the first half in the ¥144 range. In the second half of the year, the yen trended consistently lower, fueled by expectations for expansionary fiscal policy and monetary easing following the change in government after Japan’s House of Councilors election. In November, the rate reached ¥157 as Fed rate-cut expectations receded. Toward year-end, despite temporary appreciation from weak U.S. economic data and BOJ rate-hike speculation, the yen remained under pressure due to concerns over Japan’s fiscal sustainability and structural factors such as the "digital deficit" and a plateauing travel balance. The telegraphic transfer middle (TTM) rate consequently closed at ¥156.54 against the U.S. dollar, an appreciation of ¥1.63 from the end of the previous fiscal year. Reflecting these situations, the average exchange rate of the Japanese yen against the U.S. dollar on consolidated revenue appreciated by ¥2.13 to ¥149.60 per U.S. dollar from the previous fiscal year.
Under this business environment, consolidated revenue for the year ended December 31, 2025 decreased by ¥254.4 billion, or 11.2%, to ¥2,011.3 billion from the previous fiscal year due to a decrease in sales price of crude oil. Revenue from crude oil decreased by ¥181.7 billion, or 10.6%, to ¥1,530.2 billion, and revenue from natural gas decreased by ¥77.1 billion, or 14.7%, to ¥448.0 billion. Sales volume of crude oil increased by 5,696 thousand barrels, or 4.1%, to 144,673 thousand barrels, and sales volume of natural gas decreased by 26,849 million cf, or 5.7%, to 446,818 million cf. Sales volume of overseas natural gas decreased by 15,048 million cf, or 3.9%, to 366,659 million cf, and sales volume of domestic natural gas decreased by 316 million m 3 , or 12.8%, to 2,148 million m 3 (80,159 million cf). The average sales price of overseas crude oil decreased by US$10.51, or 12.9%, to US$70.69 per barrel. The average sales price of overseas natural gas decreased by US$0.63, or 11.0%, to US$5.10 per thousand cf, and the average sales price of domestic natural gas increased by ¥0.37, or 0.5%, to ¥78.61 per m3 The average exchange rate of the Japanese yen against the U.S. dollar on consolidated revenue appreciated by ¥2.13, or 1.4%, to ¥149.60 per U.S. dollar.
The decrease of ¥254.4 billion in revenue was mainly derived from the following factors: an increase in sales volume contributing ¥36.5 billion to the increase, a decrease in unit sales price pushing sales down of ¥269.3 billion, the appreciation of the Japanese yen against the U.S. dollar contributing ¥26.0 billion to the decrease, and an increase in other factors of ¥4.4 billion. Meanwhile, cost of sales decreased by ¥50.7 billion, or 5.5%, to ¥864.5 billion. Exploration expenses decreased by ¥36.6 billion, or 68.6%, to ¥16.7 billion. Selling, general and administrative expenses decreased by ¥16.4 billion, or 12.3%, to ¥118.0 billion. Other operating income increased by ¥48.2 billion, or 134.7%, to ¥84.1 billion, while other operating expenses increased by ¥1.2 billion, or 4.1%, to ¥32.8 billion, and share of profit of investments accounted for using equity method decreased by ¥32.7 billion, or 31.2%, to ¥72.0 billion. As a result, operating profit decreased by ¥136.3 billion, or 10.7%, to ¥1,135.4 billion.Other operating income for the year ended December 31, 2025 includes an amount of ¥34.7 billion arising from the reclassification of a part of the cumulative exchange differences on translation of foreign operations from equity to profit or loss, following the paid-in capital reductions of the equity interest in INPEX Holdings Australia Pty Ltd, which constitutes the Ichthys LNG Project. Finance income decreased by ¥29.2 billion, or 19.6%, to ¥120.1 billion. Finance costs decreased by ¥40.3 billion, or 32.9%, to ¥82.1 billion. As a result, profit before tax decreased by ¥125.3 billion, or 9.7%, to ¥1,173.4 billion.
Income tax expense decreased by ¥120.7 billion, or 14.0%, to ¥743.8 billion, and profit attributable to non-controlling interests increased by ¥28.9 billion, or 419.3%, to ¥35.8 billion. As a result of the above effects, profit attributable to owners of parent decreased by ¥33.5 billion, or 7.8%, to ¥393.8 billion.

Operating results by segment are as follows:

Total assets as of December 31, 2025 increased by ¥354.3 billion to ¥7,735.1 billion from December 31, 2024. Current assets increased by ¥238.8 billion to ¥1,109.0 billion, mainly due to an increase in other financial assets. Non-current assets increased by ¥115.4 billion to ¥6,626.1 billion, mainly due to an increase in investments accounted for using equity method.
Meanwhile, total liabilities increased by ¥469.2 billion to ¥2,712.2 billion from December 31, 2024. Current liabilities increased by ¥306.0 billion to ¥839.6 billion and non-current liabilities increased by ¥163.2 billion to ¥1,872.6 billion. Total equity decreased by ¥114.9 billion to ¥5,022.9 billion from December 31, 2024.
Total equity attributable to owners of parent decreased by ¥74.6 billion to ¥4,747.1 billion, while non-controlling interests decreased by ¥40.2 billion to ¥275.7 billion.

The Group’s cash and cash equivalents (hereinafter “cash”) amounted to ¥168.4 billion as of December 31, 2025, reflecting a net decrease of ¥85.5 billion from ¥241.6 billion as of December 31, 2024, and the effect of exchange rate changes of ¥12.3 billion.
Cash flows from operating, investing, and financing activities for the year ended December 31, 2025 and their factors are as follows.

Net cash provided by operating activities amounted to ¥693.8 billion, up ¥39.1 billion from the previous fiscal year. This was mainly due to a decrease in trade and other receivables and a decrease in income taxes paid despite a decrease in profit before tax.

Net cash used in investing activities amounted to ¥668.7 billion, up ¥378.3 billion from the previous fiscal year. This was mainly due to an increase in payments for purchases of investments and a decrease in proceeds from withdrawal of time deposit.

Net cash used in financing activities amounted to ¥110.7 billion, down ¥239.2 billion from the previous fiscal year. This was mainly due to an increase in net increase in commercial paper and an increase in short-term borrowings despite an increase in cash dividends paid to non-controlling interests.

As for the Group’s financial outlook for the year ending December 31, 2026, revenue for the six months ending June 30, 2026 is expected to decrease by 7.4% year-on-year to ¥971.0 billion, and revenue for the year ending December 31, 2026 is expected to decrease by 5.9% year-on-year to ¥1,893.0 billion. Operating profit for the six months ending June 30, 2026 is expected to decrease by 22.8% year-on-year to ¥476.0 billion, while operating profit for the year ending December 31, 2026 is expected to decrease by 15.7% year-on-year to ¥957.0 billion.
Profit before tax for the six months ending June 30, 2026 is expected to decrease by 22.5% year-on-year to ¥500.0 billion, and profit before tax for the year ending December 31, 2026 is expected to decrease by 14.8% year-on-year to ¥1,000.0 billion. Profit attributable to owners of parent for the six months ending June 30, 2026 is expected to decrease by 32.9% year-on-year to ¥150.0 billion, and profit attributable to owners of parent for the year ending December 31, 2026 is expected to decrease by 16.2% year-onyear to ¥330.0 billion.
Revenue for the year ending December 31, 2026 is expected to decrease due to the assumptions for the sales price of crude oil being set lower year-on-year while stable production is expected to be maintained at key projects including Ichthys. Operating profit for the year ending December 31, 2026 is also expected to decrease due to higher exploration expenses resulting from increased exploration activities mainly in Asia. Accordingly, profit before tax and profit attributable to owners of parent for the year ending December 31, 2026 is also expected to decrease year-on-year.
The above forecasts are based on an average crude oil price assumption of US$63.0 per barrel (Brent) for the year ending December 31, 2026. The average exchange rate assumption for the year ending December 31, 2026 is ¥151 to the U.S. dollar.

Based on the shareholder returns policy outlined in the Mid-term Business Plan 2025-2027 announced on February 13, 2025, our basic policy during the period of 2025 to 2027 is to aim for a total payout ratio of 50% or more, and to strengthen shareholder returns in line with growth in financial performance, by implementing a stable shareholder returns through introduction of a progressive dividend payout starting with ¥90 per share annually, and by implementing flexible share buybacks in line with the business environment and financial and management conditions.
In accordance with the policy stated above, the Company has set the year-end dividend at ¥50 per common stock for the year ended December 31, 2025. Combined with the mid-term dividend of ¥50 per common stock, the planned total dividends for the year ended December 31, 2025 are ¥100 per common stock. The Company has also set the year-end dividend at ¥20,000 per Class A stock for the year ended December 31, 2025. Combined with the mid-term dividend of ¥20,000 per Class A stock (unlisted), the planned total dividends for the year ended December 31, 2025 are ¥40,000 per Class A stock.
For the year ending December 31, 2026, the Company expects mid-term and year-end dividends of ¥54 each, bringing the total dividends to ¥108 per common stock. The Company expects mid-term and year-end dividends of ¥21,600 each, bringing the total dividend to ¥43,200 per Class A stock.
The Company conducted a stock split at a ratio of 1:400 of common stock effective October 1, 2013. However, for Class A stock, no stock split was implemented. The article specifying that dividends of Class A stock are equivalent to dividends of common stock prior to the stock split is included in the Articles of Incorporation.