Japan Petroleum Exploration Co., Ltd. · TSE:1662
Japan Petroleum Exploration — FY2011 Earnings Presentation
43 slides from Japan Petroleum Exploration's earnings presentation, May 16, 2011
Slide 1: Presentation of Consolidated Financial Results for Year Ended March 31, 2011
Note: The following report is an English translation of the Japanese-language original. Presentation of Consolidated financial results for ended March 31, 2011 May 16 , 2011 Japan Petroleum Exploration Co., Ltd. copyright©2011 JAPAN PETROLEUM EXPLORATION Co.,LTD. All rights reserved.
Slide 2: Cautionary statement
Cautionary statement Any information contained herein with respect to JAPEX’s plans, estimates, strategies and other statements that are not historical facts are forward-looking statements about the future performance of JAPEX. Readers should be aware that actual results and events may differ substa
Slide 3: Contents
Contents １．Business Overview ２．Actual results for FY2011 ３．Estimates for FY2012 ４．New Medium-term Business Plan （ FY2012 - FY2016 ） 3
Slide 4: Business Overview
Business Overview President Osamu Watanabe 4
Slide 5: Trends in Crude oil prices and Foreign exchange rates
[JCC Price] $-denominated $/bbl $40 $50 $60 $70 $80 $90 $110 $100 $120 $130 $140 2007-04 2007-05 2007-06 2007-07 2007-08 2007-09 2007-10 2007-11 2007-12 2008-01 2008-02 2008-03 2008-04 2008-05 2008-06 2008-07 2008-08 2008-09 2008-10 2008-11 Yen 2008-12 2009-01 2009-02 2009-03 5 2009-04 2009-05 2009-
Slide 6: Actual results for FY2011 and Estimate for FY2012 (Highlight)
Business Overview Actual results for FY2011 and Estimate for FY2012 (Highlight) ■ Actual results for FY2011 ( vs FY2010) Billion ￥ 223.4 FY2010 FY2011 60 225 [ Billion ￥] change Net Sales (right axis) (a) (a) 55 220 Net Sales 179.7 199.6 19.9 11% Operating income (left axis) Operating income 13.1 13
Slide 7: Domestic exploration plan for FY2012
Business Overview Domestic exploration plan for FY2012 ◆Exploration well drilling schedule FY2012 Total ●Exploration well: 1 well 1Q 2Q 3Q 4Q Depth ■Seismic survey : 2 sites 4 5 6 7 8 9 10 11 12 1 2 3 Akeno A1 5,070m Exploration well Akeno A1 (5,070m) ◆ Geophysical prospecting survey plan : 2sites 2
Slide 8: CAPEX plan for FY2012
Business Overview CAPEX plan for FY2012 Billion ￥ Billion ￥ FY12 [ Billion ￥] FY08 FY09 FY10 FY11 45 45 (e) CAPEX 41.7 30.9 28.8 21.9 30.7 40 40 5.1 Depreciation and 16.6 21.5 23.2 24.5 23.8 amortization 35 35 0.7 Main items of CAPEX for FY2012 30 30 4.7 24.5 23.8 25 25 Domestic CAPEX ¥ 12.0 billion
Slide 9: Overseas business: Activities in strategic regions
Business Overview Overseas business : Activities in strategic regions Canada Sakhalin -Oil sands development -Sakhalin 1 Project (production & exploration (reserve evaluation)) (production) North Africa Middle East -Iraq : Garraf oil field (development) -Legend- Southeast Asia Strategic regions -Kan
Slide 10: Current status of overseas business: Canada oil sands
Business Overview Current status of overseas business ① Canada oil sands ■Areas in which JACOS holds interest in oil sands leases Canada Oil Sands Co., Ltd. (CANOS) Project company (86.64% owned by JAPEX ) Japan Canada Oil Sands Ltd. (JACOS) Operator (Local subsidiary, wholly owned by CANOS) Block I
Slide 11: Current status of overseas business: Sakhalin 1 Project
Business Overview Current status of overseas business ② Sakhalin 1 Project Sakhalin 1 Consortium Interest Exxon Neftegas Ltd. 30% Sakhalin Oil and Gas Development Co., Ltd. (SODECO) 30% Odoptu Minister of Economy, Trade and Industry : 50.00% JAPEX : 14.46% ITOCHU Corp. : 14.46% Marubeni Corp. : 11.6
Slide 12: Current status of overseas business: Iraq
Business Overview Current status of overseas business ③ Iraq Garraf development project North Oil PETRONAS Contractors JAPEX Company Development and Production Service Contract (Operator) Contract type (NOC) Counterparty South Oil Company (SOC) Payment share 60% 40％ - 20 years Contract term Particip
Slide 13: Current status of overseas business: Indonesia Kangean Block
Business Overview Current status of overseas business ④ Indonesia: Kangean Block Jakarta Kangean Energy Indonesia Ltd. (KEI) Project Surabaya and two other companies. Java Island company (Equity-method affiliates) Pagerungan Utara oil field (Production) West Kangean gas field (Exploration) Kangean I
Slide 14: Current status of overseas business: Ache Block A
Business Overview Current status of overseas business ⑤ Indonesia: Ache Block A Project company Japex Block A Ltd. Interest 16.67% Ache Block A Block (northern Sumatra) Ache Block A Operator Medco Around 100 million cf/d Gross production (around 20,000 boe/d in crude oil equivalent ） Jakarta 2010 Ap
Slide 15: Current status of overseas business: Buton Block
Business Overview Current status of overseas business ⑥ Indonesia: Buton Block Project company Japex Buton Ltd. Airborne gravity and magnetic surveys 2008 2D seismic surveys Interest 40% 2009 Selected the exploration well structure Buton Block Block (onshore/offshore block on Buton Island, Southeast
Slide 16: Actual results for FY2011
Actual results for FY2011 Executive Vice President Hiroshi Sato 16
Slide 17: Actual results for FY2011 (Highlight)
Actual results for FY2011 ( Highlight ) FY2011 FY2010 Initial Revised Revised [ Million ￥] Actual estimate estimate ① estimate ② Actual (May ‘10) (Nov. ‘10) (Feb. ‘11) Net Sales 179,752 196,891 192,319 194,606 199,651 Operating income 13,119 13,267 8,144 9,396 13,849 Ordinary income 23,206 14,908 10
Slide 18: Actual sales of Natural gas in FY2011 (vs FY2010)
Actual sales of Natural gas in FY2011 (vs FY2010) FY2010 FY2011 change 1H (a) Full (a) 1H (a) Full (a) 1H Full Sales volume Million M3 643 1,499 696 1,553 53 54 Natural gas: Net sales Million ￥ 24,924 55,593 27,039 61,090 2,115 5,496 Of which, Domestically produced gas: Sales volume Million M3 454 1
Slide 19: Actual sales of Crude oil in FY2011 (vs FY2010)
Actual sales of Crude oil in FY2011 (vs FY2010) Sales volume : Thousand KL FY 2010 FY 2011 change Net sales : Million ￥ 1H (a) Full (a) 1H (a) Full (a) 1H Full Sales volume 967 2,125 946 1899 (21) (226) Crude oil: Net sales 33,008 80,742 38,242 77,629 5,233 (3,113) Breakdown of equity oil Domestical
Slide 20: Actual results for FY2011 (vs FY2010)
Actual results for FY2011 (vs FY2010) FY2010 FY2011 ≪Causes of increase(+) or decrease(-) ≫ [ Million ￥] change (a) (a) Gross profit Net sales 179,752 199,651 19,898 Domestic crude oil and natural gas + ¥2.1 billion Gross profit 54,285 54,732 447 Overseas consolidated subsidiaries - ¥1.9 billion Exp
Slide 21: Estimates for FY2012
Estimates for FY2012 Executive Vice President Hiroshi Sato 21
Slide 22: Estimates for FY2012 (Point)
Estimates for FY2012 (Point) FY2011 FY2012 change [ Million ￥] 1H (a) Full (a) 1H (e) Full (e) 1H Full Net Sales 92,369 199,651 101,256 223,479 8,887 23,827 Operating income 3,845 13,849 5,722 11,757 1,876 (2,093) Ordinary income 4,929 17,122 7,362 15,634 2,433 (1,488) Net income 1,896 10,010 5,459
Slide 23: Estimated Natural gas sales in FY2012
Estimated Natural gas sales in FY2012 FY2011 FY2012 change 1H (a) Full (a) 1H (e) Full (e) 1H Full Sales volume Million M3 696 1,553 754 1,714 58 160 Natural gas: Net sales Million ￥ 27,039 61,090 32,493 73,585 5,454 12,494 Of which, Domestically produced gas: Sales volume Million M3 529 1,185 545 1
Slide 24: Estimated Crude oil sales in FY2012
Estimated Crude oil sales in FY2011 Sales volume : Thousand KL FY 2011 FY 2012 change Net sales : Million ￥ 1H (a) Full (a) 1H (e) Full (e) 1H Full Sales volume 946 1,899 948 1,949 2 50 Crude oil: Net sales 38,242 77,629 41,774 86,093 3,532 8,464 Breakdown of equity oil Domestically produced Sales v
Slide 25: Estimates for FY2012
Estimates for FY2012 ≪Causes of increase(+) or decrease(-) ≫ FY2011 FY2012 [ Million ￥] change Gross profit (a) (e) Domestic crude oil and natural gas Net sales 199,651 223,479 23,827 + ¥2.7 billion Expenses incurred in connection with increase Gross profit 54,732 52,361 (2,372) in purchase volume o
Slide 26: Oil price and Exchange rate assumptions and impact on profits
Oil price and Exchange rate assumptions and impact on profits JCC price Exchange rate Bitumen price Assumption CAD 47.82 /bbl USD 90 /bbl Yen 85 /USD （ Yen 85 /CAD ） USD 1 /bbl increase in A weakening in the yen to CAD 1/bbl increase in Impact on Profits crude oil prices would push Yen 5/USD would p
Slide 27: New Medium-term Business Plan (FY2012-FY2016)
New Medium-term Business Plan （ FY2012 - FY2016 ） President Osamu Watanabe 27
Slide 28: About the New Medium-Term Business Plan Covering FY2012 to FY2016
About the New Medium-Term Business Plan Covering the Period from FY2012 to FY2016 Ⅰ．The New Medium-Term Business Plan Ⅱ．JAPEX’s Perception of the Business Environment and Preconditions (assumptions regarding crude oil prices and exchange rates) Ⅲ Corporate Vision and Basic Strategies for JAPEX Expan
Slide 29: Level of Achievement against Previously Established Targets
I-1. The Level of Achievement against Previously Established Targets Leading into the New Medium- Business Plan In working toward the overarching goal of business growth and expansion, JAPEX is projected to achieve its targets for proved reserves, natural gas sales volume as well as sales of natur
Slide 30: Positioning of the New Medium-Term Business Plan
I -2. Positioning of the New Medium-Term Business Plan Drawing on the level of achievement against numerical targets established under the previous mid-term business plan, took steps to draw up a new medium-term business plan (FY2012 to FY2016) with the aim of securing further growth Achievement A
Slide 31: JAPEX's Perception of the Business Environment and Preconditions
II-1. JAPEX’s Perception of the Business Environment and Preconditions Perceptions of the Business Environment An increasingly competitive Intense competition in the domestic resource development environment natural gas business Growing nationalism in oil and gas producing Aggressive natural gas i
Slide 32: Assumptions regarding crude oil price and exchange rate
II-2 JAPEX’s Perception of the Business Environment and Preconditions assumptions regarding crude oil price and exchange rate ■Taking into consideration the current high level of crude oil price and the assumption that price would continue to hover at current levels for the foreseeable future, JAPEX
Slide 33: Corporate Vision and Three basic policies
Ⅲ-1. Corporate Vision and Basic Strategies for JAPEX Expansion Three basic policies for JAPEX expansion JAPEX’s overarching corporate vision and three basic policies remain unchanged Corporate Vision Three basic policies aimed at securing business expansion Taking on the challenge of creating new
Slide 34: Growth Story
Ⅲ-2. Corporate Vision and Basic Strategies for JAPEX Expansion Growth Story While positioning E&P at the Company’s main activities, endeavor to increase business opportunities by shifting to E&P activities overseas and pursuing new investment in domestic natural gas as well as environment and inno
Slide 35: Growth Initiatives: E&P Activities (1/2)
Ⅳ-1．Growth Initiatives ① E&P Activities（1/2） Focusing particularly on a shift overseas, organize E&P activities into three phases over the next decade and establish clearly defined objectives for each phase Overseas E&P activities under the new medium-term business plan E&P Activity Objectives 1st
Slide 36: Growth Initiatives: E&P Activities (2/2)
Ⅳ-2．Growth Initiative ① E&P Activities（2/2） Objective 2: Increase production volumes Ensure the shift to production and cash in from Objective 1: development projects slated for between fiscal 2012 and fiscal 2016 Shift investment overseas (FY2013 to FY2016) BOE/D Lift overall overseas investment as
Slide 37: Development of the E&P business structure
【Reference】 Development of the E&P business structure （Effective from June 24） or Restructuring of the E&P business organization Plans are in place to implemented the following organizational structure as a part of efforts to expand earnings through aggressive investment in overseas E&P businesses
Slide 38: Growth Initiatives: Domestic Natural Gas Business
Ⅳ-3．Growth Initiatives ② Domestic Natural Gas Business Contribute to the growing use of natural gas (amid, however, an uncertain business environment) Domestic natural gas business under the new medium-term business plan Domestic natural gas activities FY2012 Expectations Expectationsofofachieving
Slide 39: Growth Initiatives: Environment and Innovative Technology Projects
Ⅳ-4．Growth Initiatives ③ Environment and Innovative Technology Projects Engage in full-fledged commercialization activities as one of the three basic policies that underpin JAPEX’s earnings platform Environment and innovative technology activities under the new medium-term business plan Methane hy
Slide 40: Consolidated Profit and Loss
V-1. Consolidated Profit and Loss / Investment Portfolio Consolidated Profit and Loss Projected substantial recovery in the Company’s consolidated profit and loss due to a variety of factors including the decrease in depreciation and amortization, adjustment to natural gas sales prices and contrib
Slide 41: Forecast Depreciation and Amortization
[Reference] Forecast Depreciation and Amortization Depreciation and amortization on a consolidated basis expected to peak (approximately ¥25.0 billion) leading up to fiscal 2011 and to decline thereafter Due largely to the completion of a round of investment aimed at expanding domestic productio
Slide 42: Investment Portfolio
V-2. Consolidated Profit and Loss / Investment Portfolio Investment Portfolio Projected investment scale of approximately ¥280.0 billion taking into consideration free cash flows between fiscal 2012 and fiscal 2016 together with external funds procured The investment portfolio is presented as fo
Slide 43: Summary
Ⅵ ． Summary Expectations that the objectives identified in the mid-term business plan announced in May 2008 will be achieved by fiscal 2012 Steps taken to draw up a medium-term business plan covering the period from fiscal 2012 to fiscal 2016 Business expansion across the three core business p
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