Japan Petroleum Exploration Co., Ltd. · TSE:1662

Japan Petroleum Exploration — H1 FY3/19 Earnings Presentation

35 slides from Japan Petroleum Exploration's earnings presentation, Nov 12, 2018

  1. Slide 1: Financial Results for the Six Months Ended September 30, 2018

    Note: The following report is an English translation of the Japanese-language original. Financial Results for the Six Months Ended September 30, 2018 November 12 , 2018 Japan Petroleum Exploration Co .,Ltd.

  2. Slide 2: Cautionary Statement

    Cautionary Statement This document contains future prospects such as plans, forecasts, strategies, and others which are not historical fact and forward-looking statements about the future performance of JAPEX. Actual results may significantly differ from those future prospects due to various factors

  3. Slide 3: Contents

    Contents Ⅰ. Business Overview Hideichi Okada, Representative Director and President Ⅱ. Actual Results for the Six Months Ended September 30, 2018 Michiro Yamashita, Director Managing Executive Officer Ⅲ. Forecasts for the FY3/19 Michiro Yamashita, Director Managing Executive Officer 3

  4. Slide 4: Business Overview

    Ⅰ. Business Overview Hideichi Okada Representative Director and President 4

  5. Slide 5: Long-term Vision and Mid-term Business Plan

    Long-term Vision and Mid-term Business Plan Corporate profit* composition Long-term Vision 2030 2030 Ratio “Growth to the Integrated Energy Company Utilizing Our Oil and Gas E&P and Its Supply Basis” The profit composition JAPEX aims for in 2030 E&P Business : Non-E&P Business = 6：4 Mid-term Busines

  6. Slide 6: Trends in Crude Oil Price and Foreign Exchange Rate

    Trends in Crude Oil Price and Foreign Exchange Rate USD/bbl JPY/USD $90 ¥115 Crude Oil Price USD/bbl Exchange Rate JPY/USD $80 $70 ¥110 $60 $50 ¥105 2017-09 2017-10 2017-11 2017-12 2018-01 2018-02 2018-03 2018-04 2018-05 2018-06 2018-07 2018-08 2018-09 Assumption of crude oil price and exchange rate

  7. Slide 7: E&P Business

    E&P Business Main Project Hokkaido: Oil Development of a Shallow Iraq: Garraf Project Reservoir of Yufutsu Oil and Gas Field  Under development to increase of oil production volume  Under development toward gas production for 230,000 bbl/d commencement in FY2020 Canada: Shale Gas Project Indonesia

  8. Slide 8: E&P Business: Canada Oil Sands Project

    E&P Business Canada: Oil Sands Project  Production operation: Good and stable bitumen production • Transitioned to stable operations of 20,000 bbl/d level bitumen production in June 2018 • Expecting good potential of the oil sands layer for bitumen production  Sales of diluted bitumen: Severe cond

  9. Slide 9: Infrastructure & Utility Business

    Infrastructure & Utility Business Domestic Natural Gas Supply Power Generation and Sales  Develop new clients for increasing  Natural Gas-Fired Power Generation domestic gas sales Project at Soma Port  Received 4 LNG cargoes at the Soma LNG • Under construction of Fukushima Natural Gas Terminal i

  10. Slide 10: New Business Development

    New Business Development Accumulation of Technology through Commissioned Research  CCS (Carbon Dioxide Capture and Storage)  Methane hydrate  Next-generation technology for ocean resources exploration Identification of Business Seeds  LNG overseas rail transport  LNG bunkering  CO2-EOR  Prepa

  11. Slide 11: Transformation into a Lean and Resilient Corporation

    Transformation into a Lean and Resilient Corporation Portfolio optimization Proactive cost reduction including sales of assets Transformation into a Lean and Resilient Corporation 11

  12. Slide 12: Actual Results for the Six Months Ended September 30

    Ⅱ. Actual Results for the Six Months Ended September 30, 2018 Michiro Yamashita Director Managing Executive Officer 12

  13. Slide 13: Actual Sales of Natural Gas in 2Q FY3/19 (year-on-year)

    Actual results Actual Sales of Natural Gas in 2Q FY3/19 ( year-on-year ) Sales volume : Million M3 FY3/18 FY3/19 Change Net sales : Million JPY 2Q (a) 2Q (a) Sales volume 833 813 (20) Natural gas Net sales 26,839 27,835 +995 Increase in sales price Sales volume by region Japan Sales volume 569 548 (

  14. Slide 14: Actual Sales of Crude Oil in 2Q FY3/19 (year-on-year)

    Actual results Actual Sales of Crude Oil in 2Q FY3/19 ( year-on-year ) Sales volume : Thousand KL FY3/18 FY3/19 Change Net sales : Million JPY 2Q(a) 2Q(a) Sales volume 1,548 1,278 (269) Crude oil Net sales 53,086 54,305 +1,219 Increase in sales price Equity oil sales Crude oil produced in Sales volu

  15. Slide 15: Actual Results for 2Q FY3/19 (year-on-year)

    Actual results Actual Results for 2Q FY3/19 ( year-on-year ) FY3/18 FY3/19 Main factors for change [ Million JPY] Change Increase factor “+” / Decrease factor “( )” 2Q (a) 2Q (a) Gross profit Net sales 112,382 115,136 +2,754 Domestic business (¥2.6 billion) Overseas consolidated subsidiaries Gross p

  16. Slide 16: Forecasts for the FY3/19

    Ⅲ. Forecasts for the FY3/19 Michiro Yamashita Director Managing Executive Officer 16

  17. Slide 17: Price Assumptions for Revised Forecasts for FY3/19

    Revised forecasts Price Assumptions for Revised Forecasts for FY3/19 2018 2019 Full year Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec. Jan.-Mar. Previous forecasts 67.95 70.00 70.00 70.00 69.50 JCC USD/bbl Revised forecasts 67.95 76.64 75.00 75.00 73.75 Previous forecasts 107.42 110.00 110.00 110.00 109.3

  18. Slide 18: Revised Forecasts Natural Gas Sales for FY3/19

    Revised forecasts Revised Forecasts Natural Gas Sales for FY3/19 (vs Previous Forecasts) FY3/19 FY3/19 Sales volume : Million M3 Previous forecasts Full (f) Revised forecasts Full (f) Change Net sales : Million JPY August 8, 2018 November 9, 2018 Sales volume 1,762 1,731 (30) Natural gas Net sales 6

  19. Slide 19: Revised Forecasts Crude Oil Sales for FY3/19

    Revised forecasts Revised Forecasts Crude Oil Sales for FY3/19 (vs Previous Forecasts) FY3/19 FY3/19 Sales volume : Thousand KL Previous forecasts Revised forecasts Change Net sales : Million JPY Full (f) Full (f) August 8, 2018 November 9, 2018 Sales volume 3,310 3,240 (69) Crude oil Net sales 133,

  20. Slide 20: Revised Forecasts for FY3/19 (vs Previous Forecasts)

    Revised forecasts Revised Forecasts for FY3/19 (vs Previous Forecasts) Previous forecasts Revised forecasts Main factors for change Increase factor “+” / Decrease factor “( )” [Million JPY] Full (f) Full (f) Change August 8, 2018 November 9, 2018 Gross profit Net sales 284,019 288,330 +4,310 Domesti

  21. Slide 21: Revised Forecasts Natural Gas Sales for FY3/19 (year-on-year)

    Revised forecasts Revised Forecasts Natural Gas Sales for FY3/19 (year-on-year) FY3/18 FY3/19 Change Sales volume : Million M3 Net sales : Million JPY Revised forecasts Full (f) Full (a) Full November 9, 2018 Sales volume 1,773 1,731 (41) Natural gas Net sales 60,431 66,113 +5,682 Increase in sales

  22. Slide 22: Revised Forecasts Crude Oil Sales for FY3/19 (year-on-year)

    Revised forecasts Revised Forecasts Crude Oil Sales for FY3/19 (year-on-year) FY3/18 FY3/19 Change Sales volume : Thousand KL Revised forecasts Net sales : Million JPY Full (a) Full (f) November 9, Full 2018 Sales volume 2,506 3,240 +734 Crude oil Net sales 93,685 138,320 +44,634 Increase in sales v

  23. Slide 23: Revised Forecasts for FY3/19 (year-on-year)

    Revised forecasts Revised Forecasts for FY3/19 (year-on-year) FY3/19 Main factors for change FY3/18 Revised forecasts Increase factor “+” / Decrease factor “( )” [Million JPY] Full (f) Change Full (a) November 9, Gross profit 2018 Domestic business (¥6.3 billion) Overseas consolidated subsidiaries (

  24. Slide 24: Assumptions and Impact on Profits [3Q-4Q]

    Revised forecasts Assumptions and Impact on Profits [3Q-4Q] FY3/18 FY3/19 Full(a) 1Q(a) 2Q(a) 3Q(f) 4Q(f) Full(f) JCC USD/bbl 56.20 67.95 76.64 75.00 75.00 73.75 Exchange rate JPY/USD 111.67 107.42 110.61 110.00 110.00 109.60 Canadian gas CAD/mcf 2.07 2.04 1.21 1.64 1.90 1.65 JCC Exchange rate Canad

  25. Slide 25: E&P Business (1) Projects in Japan and Overseas

    ＜Appendix＞ E&P Business (1) Projects in Japan and Overseas Canada Oil Sands Project (Production) Canada Shale Gas Project (Production) U.K. North Sea Offshore Block Russia Sakhalin-1 Project (Planned to Development) (Production & Development) Oil and Gas Fields in Japan (Production) United States Ti

  26. Slide 26: E&P Business (2) Activities in Japan

    ＜Appendix＞ E&P Business (2) Activities in Japan  Operating 10 domestic oil and gas field  Pursuing compensation of reserves in Japan and maintenance of the production volume  Pursuing additional E&P potential including utilizing government basic surveys Yurihara Yufutsu Oil and Gas Field Oil and

  27. Slide 27: E&P Business (3) Canada: Oil Sands Project

    ＜Appendix＞ E&P Business (3) Canada: Oil Sands Project Project Canada Oil Sands Co., Ltd. (CANOS) Company Operator ： Japan Canada Oil Sands Ltd. (JACOS) Calgary Block Hangingstone Leases 75％ interests Ongoing Production FORT McMURRAY Area Gradual increase from 20,000 bbl/d Corner JV Lease Hangingston

  28. Slide 28: E&P Business (4) Canada: Shale Gas Project

    ＜Appendix＞ E&P Business (4) Canada: Shale Gas Project Upstream: Shale gas project Midstream: LNG project Calgary Lelu Island, North Montney Area, British Block The Port of Prince Rupert, Columbia, Canada British Columbia, Canada The North Montney Area Interest 10% Interest 10% Equity (Production & D

  29. Slide 29: E&P Business (5) Iraq: Garraf Project

    ＜Appendix＞ E&P Business (5) Iraq : Garraf Project Project Japex Garraf Ltd. company Interest 30％ (cost share 40%) Baghdad Operator ： PETRONAS Garraf Oil Field Field Garraf Oil Field In Production Samawah Nasiriyah Basrah ■Schedule First oil production in August 2013 2013 Average daily production: ap

  30. Slide 30: E&P Business (6) Indonesia: Kangean Project

    ＜Appendix＞ E&P Business (6) Indonesia: Kangean Project Kangean Energy Project Indonesia Ltd. (KEI) Company + 2 others, Equity-method affiliate 25％ (Operator : KEI) Pagerungan Gas Field (Production) Interest TSB Gas Field （Production-partly） Sirasun Gas Field Terang Gas Field Batur Gas Field FPU (Flo

  31. Slide 31: E&P Business (7) Russia: Sakhalin-1 Project

    ＜Appendix＞ E&P Business (7) Russia: Sakhalin-1 Project Sakhalin Oil and Gas Development Odoptu Project Co., Ltd. (SODECO) Company Equity-method affiliate Interest Sakhalin 1 Consortium SODECO Arktun-Dagi JAPEX Exxon Neftegas Ltd. METI 30％ 15.29％ 50.00% SODECO Others Others 30％ 34.71% Chayvo 40% Chay

  32. Slide 32: Infrastructure & Utility Business (1) the Soma LNG Terminal

    ＜Appendix＞ Infrastructure & Utility Business (1) the Soma LNG Terminal ■Soma LNG Terminal Shinchi-Town, Fukushima Pref. (No.4 wharf area Site of Soma Port) One LNG Tank of Aboveground Style/PC type Storage Tank containing 230,000kl LNG ocean-going vessel ：Full set (maximum Receiving 210,000m3 class)

  33. Slide 33: Infrastructure & Utility Business (2) Natural Gas-Fired Power Generation Project

    ＜Appendix＞ Infrastructure & Utility Business (2) Natural Gas-Fired Power Generation Project ■The overview of Fukushima Natural Gas Power Plant Head Office Fukushima Gas Power Co., Ltd.* (Founded April 2015) Gas Turbine and Steam Power (Gas Turbine Combined- Method cycle) Capacity 1.18 million kW (2

  34. Slide 34: New Business Development

    ＜Appendix＞ New Business Development CCS (Carbon Dioxide Capture and Storage) Implementing a CCS demonstration project in the Tomakomai area of Hokkaido since April 2012, through Japan CCS Co., Ltd. (JCCS). Cumulative Co2 injection was 207,000 tons as of the end of October 2018. Methane Hydrate Photo

  35. Slide 35: Abbreviation

    ＜Appendix＞ Abbreviation  BOE(/D) Barrels of Oil Equivalent (per Day)  CCS Carbon dioxide Capture and Storage  CIF Cost, Insurance and Freight  COP Conference Of the Parties  CSR Corporate Social Responsibility  E&P Exploration and Production  FID Final Investment Decision  GHG Greenhouse Gas

Japan Petroleum Exploration — H1 FY3/19 Earnings Presentation on 6ix