Summary of Operating Results, etc.
1.Summary of Consolidated Operating Results
Regarding the Group’s consolidated financial results for the three months ended March 31, 2026, revenue decreased by ¥35.0 billion, or 6.5%, to ¥501.8 billion from the corresponding period of the previous fiscal year due to a decrease in sales price. Revenue of crude oil decreased by ¥41.1 billion, or 10.4%, to ¥352.8 billion, and revenue of natural gas decreased by ¥2.4 billion, or 1.8%, to ¥133.6 billion. Sales volume of crude oil decreased by 880 thousand barrels, or 2.6%, to 33,343 thousand barrels, and sales volume of natural gas increased by 4,435 million cf, or 3.5%, to 130,018 million cf. Sales volume of overseas natural gas increased by 4,718 million cf, or 4.8%, to 103,201 million cf, and sales volume of domestic natural gas decreased by 8 million m3, or 1.0%, to 719 million m3(26,817 million cf). The average sales price of overseas crude oil decreased by US$8.10, or 10.7%, to US$67.39 per barrel. The average sales price of overseas natural gas decreased by US$0.12, or 2.3%, to US$5.04 per thousand cf, and the average sales price of domestic natural gas decreased by ¥8.73, or 10.8%, to ¥72.28 per m3. The average exchange rate of the Japanese yen against the U.S. dollar on consolidated revenue depreciated by ¥4.60, or 3.0%, to ¥157.00 per U.S. dollar. The decrease of ¥35.0 billion in revenue was mainly derived from the following factors: regarding revenue of crude oil and natural gas, a decrease in sales volume pushing sales down of ¥7.0billion to the decrease, a decrease in unit sales price contributing ¥49.4 billion to the decrease, the depreciation in the average exchange rate of the Japanese yen against the U.S. dollar contributing ¥12.8 billion to the increase, and an increase in revenue excluding crude oil and natural gas of ¥8.5 billion.
Meanwhile, cost of sales increased by ¥13.0 billion, or 6.0%, to ¥230.2 billion. Exploration expenses decreased by ¥1.6 billion, or 42.9%, to ¥2.2 billion. Selling, general and administrative expenses increased by ¥1.4 billion, or 4.7%, to ¥32.2 billion. Other operating income increased by ¥3.3 billion, or 60.6%, to ¥8.7 billion. Other operating expenses increased by ¥0.1 billion, or 9.4%, to ¥2.1 billion. Share of profit of investments accounted for using equity method decreased by ¥0.8 billion, or 2.4%, to ¥34.4 billion. As a result, operating profit decreased by ¥45.6 billion, or 14.1%, to ¥278.2 billion.
Finance income decreased by ¥2.1 billion, or 6.9%, to ¥28.9 billion. Finance costs decreased by ¥3.7 billion, or 19.3%, to ¥15.8 billion. As a result, profit before tax decreased by ¥44.0 billion, or 13.1%, to ¥291.3 billion.
Income tax expense decreased by ¥28.1 billion, or 14.0%, to ¥172.3 billion. Profit attributable to non-controlling interests increased by ¥1.0 billion, or 12.3%, to ¥9.5 billion. As a result of the above effects, profit attributable to owners of parent decreased by ¥16.8 billion, or 13.4%, to ¥109.4 billion.
Operating results by segment are as follows:
- 1.Oil & Gas Japan
- Revenue decreased by ¥7.1 billion, or 11.0%, to ¥57.9 billion due to a decrease in sales price. Profit attributable to owners of parent decreased by ¥9.3 billion, or 82.6%, to ¥1.9 billion.
- 2.Oil & Gas Overseas - Ichthys Project
- Although revenue increased by ¥7.1 billion, or 7.8%, to ¥98.6 billion due to an increase in sales volume, profit attributable to owners of parent decreased by ¥3.8 billion, or 5.2%, to ¥70.3 billion due to factors including an increase in income tax expense.
- 3.Oil & Gas Overseas - Other Projects
- Revenue decreased by ¥36.0 billion, or 9.6%, to ¥340.7 billion due to a decrease in sales price. Profit attributable to owners of parent decreased by ¥0.4 billion, or 1.3%, to ¥35.1 billion.
2.Summary of Consolidated Financial Position
Total assets as of March 31, 2026 increased by ¥284.2 billion to ¥8,019.4 billion, compared to December 31, 2025. Current assets increased by ¥119.1 billion to ¥1,228.2 billion due to an increase in income taxes receivable, and others. Non-current assets increased by ¥165.0 billion to ¥6,791.1 billion due to an increase in oil and gas assets, and others.
Meanwhile, total liabilities increased by ¥184.3 billion to ¥2,896.6 billion. Current liabilities increased by ¥152.4 billion to ¥992.1 billion and non-current liabilities increased by ¥31.8 billion to ¥1,904.5 billion.
Total equity increased by ¥99.8 billion to ¥5,122.7 billion. Equity attributable to owners of parent increased by ¥142.7 billion to ¥4,889.9 billion. Non-controlling interests decreased by ¥42.9 billion to ¥232.7 billion.
3.Explanation Regarding Future Forecast Information Such as Forecasts for Consolidated Financial Results
The Company revised its consolidated financial forecasts for the six months ending June 30, 2026 and the fiscal year ending December 31, 2026, reflecting stable operations at the Ichthys Project and other assets, and a review of the assumptions for crude oil prices and foreign exchange rates from the second quarter onward.
Given the heightened uncertainty surrounding the situation in the Middle East, the assumptions for crude oil prices and foreign exchange rates, as well as the consolidated financial forecast figures, have been revised and disclosed on a range basis.
| Revenue | Operating profit | Profit before tax | Profit attributable to owners of parent | |
|---|---|---|---|---|
| Previous Forecasts: A | 971,000 | 476,000 | 500,000 | 150,000 |
| Revised Forecasts: B | 1,044,000 – 1,087,000 | 579,000 – 628,000 | 604,000 – 654,000 | 180,000 – 214,000 |
| Increase (Decrease): B-A | 73,000 – 116,000 | 103,000 – 152,000 | 104,000 – 154,000 | 30,000 – 64,000 |
| Percentage change(％) | 7.5 – 11.9 | 21.6 – 31.9 | 20.8 – 30.8 | 20.0 – 42.7 |
(Millions of yen)
| Revenue | Operating profit | Profit before tax | Profit attributable to owners of parent | |
|---|---|---|---|---|
| Previous Forecasts: A | 1,893,000 | 957,000 | 1,000,000 | 330,000 |
| Revised Forecasts: B | 2,004,000 – 2,291,000 | 1,086,000 – 1,368,000 | 1,134,000 – 1,416,000 | 350,000 – 450,000 |
| Increase (Decrease): B-A | 111,000 – 398,000 | 129,000 – 411,000 | 134,000 – 416,000 | 20,000 – 120,000 |
| Percentage change (%) | 5.9 – 21.0 | 13.5 – 42.9 | 13.4 – 41.6 | 6.1 – 36.4 |
(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$63.0/bbl, 4th quarter average: US$62.0/bbl
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*23rd quarter average: US$62.0 – 85.0/bbl, 4th quarter average: US$60.0 – 75.0/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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