Japan Petroleum Exploration Co., Ltd. · TSE:1662
Japan Petroleum Exploration — FY2013 Earnings Presentation
30 slides from Japan Petroleum Exploration's earnings presentation, May 13, 2013
Slide 1: Presentation of Consolidated Financial Results for the Fiscal Year Ended March 31, 2013
Note: The following report is an English translation of the Japanese-language original. Presentation of Consolidated Financial Results for the Fiscal Year Ended March 31, 2013 May 13 , 2013 Japan Petroleum Exploration Co., Ltd. copyright©2013 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 FY2013 ３．Estimates for FY2014 3
Slide 4: Business Overview
Business Overview President Osamu Watanabe 4
Slide 5: Corporate Vision and Basic Strategies for JAPEX Expansion
Corporate Vision and Basic Strategies for JAPEX Expansion While positioning E&P business at the Company’s main activities, endeavor to increase business opportunities by shifting E&P activities overseas and pursuing new investment in domestic natural gas as well as environment and innovative technol
Slide 6: Current Status of Domestic E&P Business and Reinforcement of Domestic Business
Current Status of Domestic E&P Business and Reinforcement of Domestic Business Though JAPEX posted an impairment loss of 37 billion yen in extraordinary loss for business assets of Yufutsu oil and gas field, net loss became smaller with rise in crude oil and natural gas sales price. To maximize the
Slide 7: Domestic exploration plan for FY2014
Domestic exploration plan for FY2014 ● Extension well drilling schedule for FY 2014 Total 1Q 2Q 3Q 4Q Depth 4 5 6 7 8 9 10 11 12 1 2 3 Katakai SK-30D 5,040 m Katakai SK-30D-1 5,395 m Akebono Loc.A6H 5,800 m Akebono Loc.A6H(5,800m) Iwafuneoki East Loc.Q 3,600 m ■ Geophysical prospecting survey plan :
Slide 8: Overseas business: Basic strategy
Overseas business : Basic strategy Oil sands development (production & development) Sakhalin 1 Project Canada Natural Gas・LNG Project (production) (production・planning of LNG plant) Sakhalin Iraq : Garraf oil field (development) Middle East Japex (U.S.)Corp. North Africa (production) Southeast Asia
Slide 9: Current status of overseas business ① Indonesia: Kangean Block
Current status of overseas business ① Indonesia: Kangean Block Pagerungan Utara oil field Jakarta West Kangean gas field （Production suspended） (Exploration) Bali Island Pagerungan gas field East Java (Production) gas pipeline Sepanｊang Island oil field （Production suspended) Project Kangean Energy
Slide 10: Current status of overseas business ② Sakhalin 1 Project
Current status of overseas business ② Sakhalin 1 Project Project company Odoptu Sakhalin Oil and Gas Development Co., Ltd. (SODECO) Interest Arkutun-Dagi Sakhalin 1 Consortium SODECO JAPEX Exxon Neftegas Ltd. ３０％ 15.29％ SODECO Minister of Economy, Others Chayvo Ohters Trade and ４０％ ３０％ 34.71％ Indust
Slide 11: Current status of overseas business ③ Iraq
Current status of overseas business ③ Iraq ■ Time Schedule Project company Japex Garraf Ltd First Oil to produce at a minimum of 35,000 bbl/d and thereafter 2013 Interest progressively increase the ３０％ production levels to 60,000 bbl/d (cost share 40％) 2014～2016 Increase production gradually Operato
Slide 12: Current status of overseas business ④ Canada oil sands
Current status of overseas business ④ Canada oil sands Project Canada Oil Sands Co., Ltd. (CANOS) company Operator : Japan Canada Oil Sands Ltd. (JACOS) Block Hangingstone 3.75 section Production (Interest) １００％ Cumulative production of 6,000～7,000 bbl/d 28million bbl (as of end- December,2012) Deli
Slide 13: Current status of overseas business ⑤ Canada natural gas・LNG Project
Current status of overseas business ⑤ Canada natural gas・LNG Project Natural Gas LNG Project development and （Middle-stream） Production Project （Up-stream） Block/ North Montney, Lelu Island, Candidate site of British Columbia, the Port of Prince LNG plant Canada Rupert, B.C. Interest 10% Interest 10
Slide 14: Integration with domestic natural gas business
（Reference）Integration with domestic natural gas business We aim to enhance the domestic natural gas business with Canada natural gas・LNG project and Soma LNG receiving terminal plan. ・ Planning construction of ・Increasing natural gas sales in Soma LNG receiving terminal Central & South Hokkaido Reg
Slide 15: Production volume and Proved reserves
Production volume and Proved reserves ◆Actual production volume : 36,000BOED ⇒Decreased 5% YOY. Main reason was Yufutsu oil & gas fields ◆ Actual proved reserves : 307 million BOE ⇒Increased 38% YOY. Main reason was FID of Canada oil sands expansion project Aim to achieve the medium-term targets by
Slide 16: Timeline of Projects & Investment Scale
Timeline of Projects & Investment Scale ■Timeline 2013 2014 2015 2016 2017 2018 2019 Canada ◆Commence Expand production (plan) Oil sand expansion project production Canada Increase production gradually Natural gas（up-stream） Canada ◆FID（plan） ◆Commence LNG project （mid-stream） LNG production Iraq ◆C
Slide 17: CAPEX plan for FY2014
CAPEX plan for FY2014 Billion ￥ Billion ￥ FY14 [ Billion ￥] FY10 FY11 FY12 FY13 1,800 450 (e) CAPEX 28.8 21.9 23.8 25.3 162.0 1,600 400 Depreciation and 23.2 24.5 23.9 16.2 20.4 1,400 350 amortization Main items of CAPEX for FY2014 1,200 300 239 Domestic CAPEX ¥ 9.0 billion 1,000 1,530 250 ◆ Upgradi
Slide 18: Trends in Crude oil prices and Foreign exchange rates
Trends in Crude oil prices and Foreign exchange rates $140 ¥120 $130 ¥115 [foreign exchange rate: JPY/US$] crude oil price USD/bbl （left axis） $120 ¥110 [crude oil price: USD/bbl] $110 ¥105 $100 ¥100 $90 ¥95 $80 ¥90 $70 exchange rate JPY/US$（right axis） ¥85 $60 ¥80 $50 ¥75 $40 ¥70 2010-04 2010-05 20
Slide 19: Actual results for FY2013 and Estimate for FY2014 (Highlight)
Actual results for FY2013 and Estimate for FY2014 (Highlight) Billion ￥ 232.6 60 231.0 235 ■ Actual results for FY2013 ( vs FY2012) 55 230 FY2012 FY2013 [ Billion ￥] change 230.6 Net Sales (right axis) (a) (a) 50 225 Net Sales 230.6 231.0 0.4 0% 45 220 Operating income 15.0 13.9 (1.1) (7%) 40 215 Or
Slide 20: Actual results for FY2013
Actual results for FY2013 Executive Vice President Hiroshi Sato 20
Slide 21: Actual results for FY2013 (Highlight)
Actual Result Actual results for FY2013 ( Highlight ) FY2012 FY2013 Actual Initial Revised Revised Actual [ Million ￥] estimate estimate ① estimate ② (May 2012) (Oct. 2012) (Feb. 2013) Net Sales 230,638 214,653 222,228 228,749 231,086 Operating income 15,045 10,003 10,304 11,925 13,906 Ordinary inco
Slide 22: Actual sales of Natural gas in FY2013 (vs FY2012)
Actual Result Actual sales of Natural gas in FY2013(vs FY2012) FY2012 FY2013 change 1H (a) Full (a) 1H (a) Full (a) 1H Full Sales volume million M3 742 1,730 685 1,455 (56) (274) Natural gas: Net sales million ￥ 31,170 74,957 30,054 69,795 (1,115) (5,162) Of which, Domestically produced gas: Sales v
Slide 23: Actual sales of Crude oil in FY2013 (vs FY2012)
Actual Result Actual sales of Crude oil in FY2013 (vs FY2012) Sales volume : Thousand KL FY 2012 FY 2013 change Net sales : Million ￥ 1H (a) Full (a) 1H (a) Full (a) 1H Full Sales volume 896 1,778 920 1,684 24 (93) Crude oil: Net sales 46,649 89,891 46,463 88,529 (186) (1,362) Breakdown of equity oi
Slide 24: Actual results for FY2013 (vs FY2012)
Actual Result Actual results for FY2013 (vs FY2012) ≪Causes of increase(+) or decrease(-) ≫ FY2012 FY2013 [ Million ￥] change Gross profit (a) (a) Domestic crude oil and natural gas + ¥0.2 billion Net sales 230,638 231,086 448 LNG substitution expense - ¥0.3 billion Transportation fee of natural gas
Slide 25: Estimate for FY2014
Estimate for FY2014 Executive Vice President Hiroshi Sato 25
Slide 26: Estimates for FY2014 (Point)
Estimate for FY2014 Estimates for FY2014 (Point) FY2013 FY2014 change [ Million ￥] 1H (a) Full (a) 1H (e) Full (e) 1H Full Net Sales 105,958 231,086 99,741 232,692 (6,218) 1,606 Operating income 1,778 13,906 9,294 20,722 7,515 6,815 Ordinary income 3,062 28,082 12,462 28,783 9,400 701 Net income (24
Slide 27: Estimated Natural gas sales in FY2014
Estimate for FY2014 Estimated Natural gas sales in FY2014 FY2013 FY2014 change 1H (a) Full (a) 1H (e) Full (e) 1H Full Sales volume Million M3 685 1,455 588 1,289 (97) (167) Natural gas: Net sales Million ￥ 30,054 69,795 30,519 68,478 465 (1,317) Of which, Domestically produced gas: Sales volume Mil
Slide 28: Estimated Crude oil sales in FY2014
Estimate for FY2014 Estimated Crude oil sales in FY2014 Sales volume : Thousand KL FY 2013 FY 2014 change Net sales : Million ￥ 1H (a) Full (a) 1H (e) Full (e) 1H Full Sales volume 920 1,684 767 1,897 (154) 212 Crude oil: Net sales 46,463 88,529 38,524 95,935 (7,939) 7,406 Breakdown of equity oil Do
Slide 29: Estimates for FY2014
Estimate for FY2014 Estimates for FY2014 ≪Causes of increase(+) or decrease(-) ≫ FY2013 FY2014 [ Million ￥] (a) (e) change Gross profit Net sales 231,086 232,692 1,606 Domestic crude oil and natural gas + ¥0.6 billion Gross profit 59,010 61,972 2,961 LNG substitution expense + ¥2.3 billion Explorati
Slide 30: Oil price and Exchange rate assumptions and impact on profits
Estimate for FY2014 Oil price and Exchange rate assumptions and impact on profits JCC price Exchange rate Bitumen price Assumption CAD 45.87 /bbl USD 100 /bbl JPY 90 /USD （ JPY 90 /CAD ） USD 1 /bbl increase in JPY 5/USD weakening in CAD 1/bbl increase in Impact on Profits JCC prices would push excha
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