Summary of Operating Results, etc.
1.Summary of Consolidated Operating Results
Regarding the Company’s consolidated financial results for the six months ended June 30, 2025, revenue decreased by ¥141.9 billion, or 11.9%, to ¥1,048.8 billion from the corresponding period of the previous fiscal year due to a decrease in sales price of crude oil. Revenue of crude oil decreased by ¥112.0 billion, or 12.6%, to ¥780.1 billion, and revenue of natural gas decreased by ¥29.8 billion, or 10.6%, to ¥251.4 billion. Sales volume of crude oil increased by 866 thousand barrels, or 1.2%, to 71,501 thousand barrels, and sales volume of natural gas decreased by 5,020 million cf, or 1.9%, to 253,855 million cf. Sales volume of overseas natural gas increased by 797 million cf, or 0.4%, to 210,195 million cf, and sales volume of domestic natural gas decreased by 156 million m3, or 11.8%, to 1,170 million m3 (43,660 million cf). The average sales price of overseas crude oil decreased by U.S.$9.41, or 11.3%, to U.S.$73.51 per barrel. The average sales price of overseas natural gas decreased by U.S. $0.58, or 10.3%, to U.S.$5.03 per thousand cf, and the average sales price of domestic natural gas increased by ¥4.34, or 5.7%, to ¥81.08 per m3. The average exchange rate of the Japanese yen against the U.S. dollar on consolidated revenue appreciated by ¥4.02, or 2.6%, to ¥148.37 per U.S. dollar.
The decrease of ¥141.9 billion in revenue was mainly derived from the following factors: regarding revenue of crude oil and natural gas, an increase in sales volume contributing ¥2.6 billion to the increase, a decrease in unit sales price contributing ¥119.0 billion to the decrease, the appreciation in the average exchange rate of the Japanese yen against the U.S. dollar contributing ¥25.5 billion to the decrease, and a decrease in revenue excluding crude oil and natural gas of ¥0.07 billion.
Meanwhile, cost of sales decreased by ¥41.6 billion, or 8.8%, to ¥431.5 billion. Exploration expenses decreased by ¥43.3 billion, 87.7%, to ¥6.1 billion. Selling, general and administrative expenses decreased by ¥2.1 billion, or 3.5%, to ¥57.6 billion. Other operating income decreased by ¥14.6 billion, or 74.0%, to ¥5.1 billion. Other operating expenses increased by ¥0.9 billion, or 16.4%, to ¥6.8 billion. Share of profit of investments accounted for using equity method decreased by ¥12.6 billion, 16.3%, to ¥65.0 billion. As a result, operating profit decreased by ¥83.1 billion, or 11.9%, to ¥616.8 billion.
Finance income decreased by ¥12.7 billion, or 15.4%, to ¥70.0 billion. Finance costs decreased by ¥27.7 billion, or 39.8%, to ¥41.9 billion. As a result, profit before tax decreased by ¥68.2 billion, or 9.6%, to ¥644.9 billion.
Income tax expense decreased by ¥99.5 billion, or 19.8%, to ¥402.6 billion. Profit attributable to non-controlling interests was ¥18.7 billion compared with ¥1.6 billion of loss attributable to non-controlling interests for the corresponding period of the previous fiscal year. As a result of the above effects, profit attributable to owners of parent increased by ¥10.9 billion, or 5.1%, to ¥223.5 billion.
Operating results by segment are as follows:
Because of organizational restructuring on October 1, 2024, reportable segments have been changed, and for comparative analysis with the six months ended June 30, 2024, the figures have been prepared based on the reportable segments after the change.
- 1.Oil & Gas Japan
- Although revenue decreased by ¥8.4 billion, or 7.4%, to ¥105.9 billion due to a decrease in sales volume of natural gas, profit attributable to owners of parent increased by ¥7.8 billion, or 83.9%, to ¥17.2 billion mainly due to a decrease in cost of sales.
- 2.Oil & Gas Overseas - Ichthys Project
- Revenue decreased by ¥29.3 billion, or 13.8%, to ¥183.6 billion due to a decrease in sales price. Profit attributable to owners of parent decreased by ¥11.0 billion, or 7.3%, to ¥139.0 billion.
- 3.Oil & Gas Overseas - Other Projects
- Although revenue decreased by ¥104.2 billion, or 12.2%, to ¥749.2 billion due to a decrease in sales price of crude oil, profit attributable to owners of parent increased by ¥20.2 billion, or 38.9%, to ¥72.2 billion due to factors including a decrease in income tax expense.
2.Summary of Consolidated Financial Position
Total assets as of June 30, 2025 decreased by ¥351.5 billion to ¥7,029.3 billion, compared to December 31, 2024. Current assets increased by ¥94.4 billion to ¥964.6 billion due to an increase in other financial assets, and others. Non-current assets decreased by ¥445.9 billion to ¥6,064.7 billion due to a decrease in oil and gas assets, and others.
Meanwhile, total liabilities decreased by ¥42.9 billion to ¥2,200.0 billion. Current liabilities increased by ¥101.3 billion to ¥634.9 billion and non-current liabilities decreased by ¥144.3 billion to ¥1,565.0 billion.
Total equity decreased by ¥308.5 billion to ¥4,829.2 billion. Equity attributable to owners of parent decreased by ¥235.4 billion to ¥4,586.3 billion. Non-controlling interests decreased by ¥73.0 billion to ¥242.9 billion.
3.Summary of Cash Flows
The Group’s cash and cash equivalents amounted to ¥262.4 billion as of June 30, 2025, reflecting a net increase of ¥23.5 billion from ¥241.6 billion as of December 31, 2024, with the effect of exchange rate changes of ¥2.7 billion deducted from it.
Cash flows from operating, investing, and financing activities and their factors during the six months ended June 30, 2025 are as follows.
- 1.Cash flows from operating activities
- Net cash provided by operating activities amounted to ¥427.9 billion, up ¥58.9 billion from the corresponding period of the previous fiscal year, mainly due to a decrease in trade and other receivables and a decrease in income taxes paid despite a decrease in profit before tax.
- 2.Cash flows from investing activities
- Net cash used in investing activities amounted to ¥364.2 billion, up ¥46.1 billion from the corresponding period of the previous fiscal year, mainly due to an increase in payments for purchases of investments despite a decrease in payments into time deposits.
- 3.Cash flows from financing activities
- Net cash used in financing activities amounted to ¥40.1 billion, down ¥2.9 billion from the corresponding period of the previous fiscal year, mainly due to a net increase in short-term borrowings despite an increase in cash dividends paid to noncontrolling interests and a decrease in net increase in commercial paper.
4.Explanation Regarding Future Forecast Information Such as Forecasts for Consolidated Financial Results
The Company has revised its consolidated financial forecasts for the fiscal year ending December 31, 2025. The revision reflects safe and reliable operations in the Ichthys Project and other key projects during the three months ended June 30, 2025, as well as updated assumptions on the sales volume, crude oil prices and foreign exchange rates from the third quarter onward.
| Revenue | Operating profit | Profit before tax | Profit attributable to owners of parent | |
|---|---|---|---|---|
| Previous Forecasts: A | 1,822,000 | 916,000 | 957,000 | 300,000 |
| Revised Forecasts: B | 1,995,000 | 1,085,000 | 1,133,000 | 370,000 |
| Increase (Decrease): B-A | 173,000 | 169,000 | 176,000 | 70,000 |
| Percentage change (%) | 9.5 | 18.4 | 18.4 | 23.3 |
(Millions of yen)
The above forecasts are calculated based on the following assumptions:
| Previous Forecasts | Revised Forecasts | |
|---|---|---|
| Crude oil price(Brent) |
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| Exchange rate |
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*13rd quarter average: US$61.0/bbl, 4th quarter average: US$60.0//bbl
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*23rd quarter average: US$68.4/bbl, 4th quarter average: US$66.0/bbl
Crude oil prices at which the Company sells products vary depending on crude oil type and differ from Brent crude oil prices.
Crude oil price differences are determined by the quality of each crude oil type, etc., and are also affected by market conditions.
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