Financial results summary

(As of May 13, 2025)

Regarding the Company’s consolidated financial results for the three months ended March 31, 2025, revenue decreased by ¥59.9 billion, or 10.0%, to ¥536.8 billion from the corresponding period of the previous fiscal year due to a decrease in both sales volume and sales price. Revenue of crude oil decreased by ¥56.1 billion, or 12.5%, to ¥393.9 billion, and revenue of natural gas decreased by ¥2.7 billion, or 2.0%, to ¥136.1 billion. Sales volume of crude oil decreased by 3,115 thousand barrels, or 8.3%, to 34,223 thousand barrels, and sales volume of natural gas decreased by 5,393 million cf, or 4.1%, to 125,583 million cf. Sales volume of overseas natural gas decreased by 5,496 million cf, or 5.3%, to 98,483 million cf, and sales volume of domestic natural gas increased by 3 million m3, or 0.4%, to 726 million m3(27,100 million cf). The average sales price of overseas crude oil decreased by US$5.63, or 6.9%, to US$75.49 per barrel. The average sales price of overseas natural gas decreased by US$0.20, or 3.7%, to US$5.16 per thousand cf, and the average sales price of domestic natural gas increased by ¥3.94, or 5.1%, to ¥81.01 per m3. The average exchange rate of the Japanese yen against the U.S. dollar on consolidated revenue depreciated by ¥3.79, or 2.6%, to ¥152.40 per U.S. dollar.
The decrease of ¥59.9 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 ¥41.8billion to the decrease, a decrease in unit sales price contributing ¥28.9 billion to the decrease, the depreciation in the average exchange rate of the Japanese yen against the U.S. dollar contributing ¥11.9 billion to the increase, and a decrease in revenue excluding crude oil and natural gas of ¥1.0 billion.
Meanwhile, cost of sales decreased by ¥21.3 billion, or 8.9%, to ¥217.1 billion. Exploration expenses decreased by ¥0.8 billion, or 18.4%, to ¥3.8 billion. Selling, general and administrative expenses decreased by ¥1.5 billion, or 4.9%, to ¥30.7 billion. Other operating income decreased by ¥6.7 billion, or 55.1%, to ¥5.4 billion. Other operating expenses decreased by ¥1.8 billion, or 48.6%, to ¥1.9 billion. Share of profit of investments accounted for using equity method decreased by ¥15.2 billion, or 30.2%, to ¥35.2 billion. As a result, operating profit decreased by ¥56.2 billion, or 14.8%, to ¥323.8 billion.
Finance income decreased by ¥2.9 billion, or 8.8%, to ¥31.1 billion. Finance costs decreased by ¥21.6 billion, or 52.4%, to ¥19.6 billion. As a result, profit before tax decreased by ¥37.5 billion, or 10.1%, to ¥335.3 billion.
Income tax expense decreased by ¥48.7 billion, or 19.6%, to ¥200.5 billion. Profit attributable to non-controlling interests increased by ¥6.7 billion, or 385.2%, to ¥8.5 billion. As a result of the above effects, profit attributable to owners of parent increased by ¥4.4 billion, or 3.7%, to ¥126.2 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 three months ended March 31, 2024, the figures have been prepared based on the reportable segments after the change.

Total assets as of March 31, 2025 decreased by ¥261.8 billion to ¥7,118.9 billion, compared to December 31, 2024. Current assets increased by ¥6.2 billion to ¥876.4 billion due to an increase in other financial assets, and others. Non-current assets decreased by ¥268.1 billion to ¥6,242.4 billion due to a decrease in oil and gas assets, and others.
Meanwhile, total liabilities increased by ¥6.2 billion to ¥2,249.2 billion. Current liabilities increased by ¥106.2 billion to ¥639.9 billion and non-current liabilities decreased by ¥100.0 billion to ¥1,609.3 billion.
Total equity decreased by ¥268.1 billion to ¥4,869.7 billion. Equity attributable to owners of parent decreased by ¥191.4 billion to ¥4,630.3 billion. Non-controlling interests decreased by ¥76.6 billion to ¥239.3 billion.

The Company revised its consolidated financial forecasts for the six months ending June 30, 2025 and the fiscal year ending December 31, 2025 due to the increased risk of a decline in crude oil prices compared to the assumptions at the time of the previous forecast and the appreciation of the Japanese yen against the U.S. dollar in the three months ended March 31, 2025 while stable operations were carried out at the company’s key projects including Ichthys LNG.

The above forecasts are calculated based on the following assumptions:

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