Japan Petroleum Exploration Co., Ltd. · TSE:1662
Japan Petroleum Exploration — FY2010 Earnings Presentation
39 slides from Japan Petroleum Exploration's earnings presentation, May 17, 2010
Slide 1: Presentation of Consolidated Financial Results Ended March 31, 2010
Actual Results Note: The following report is an English translation of the Japanese-language original. Presentation of Consolidated Financial Results Ended March 31, 2010 May 17, 2010 Japan Petroleum Exploration Co., Ltd. copyright© JAPAN PETROLEUM EXPLORATION Co.,LTD. All rights reserved. 1
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 and Follow-up of Mid-Term Business Plan 2. Consolidated Financial Results for the Fiscal Year Ended March 31, 2010 3. Forecasts for the Fiscal Year Ending March 31, 2011 3
Slide 4: Business Overview and Follow-up of Mid-Term Business Plan
Business Overview and Follow-up of Mid-Term Business Plan President Osamu Watanabe 4
Slide 5: Trends in Crude oil prices and Foreign exchange rates
Business Overview Trends in Crude oil prices and Foreign exchange rates $140 ¥130 $130 ¥125 [Price] $-denominated $/bbl $120 ¥120 [Exchange Rate] \ ／ $ $110 ¥115 $100 ¥110 $90 Exchange Rate ¥105 ￥/$ (right axis) $80 ¥100 $70 ¥95 US$-denominated Price $60 $／bbl (left axis) ¥90 $50 ¥85 $40 ¥80 2007-01
Slide 6: Actual Results of FY2010 and Forecasts for FY2011 [Highlight]
Business Overview Actual Results of FY 2010 and Forecasts for FY2011 [Highlight] 207.6 (Unit： billion yen) 210 205 202.1 Net sales 196.8 200 【Actual Results of FY 2010 】 195 Operating income： ¥13.1billion 190 （year on year -¥6.9bilｌion） 185 179.7 Net income： ¥17.9billion 180 （year on year +¥5.3billi
Slide 7: Follow-up of Mid-Term Business Plan
Follow-up of Mid-Term Business Plan Follow-up of Mid-Term Business Plan for the period from FY2009 to FY2013 I. Definition of the Follow-up of Mid-Term Business Plan II. Basic strategies for JAPEX expansion III. Revision of preconditions (assumptions of crude oil price and exchange rate) Ⅳ． Progress
Slide 8: Definition of the Follow-up of Mid-Term Business Plan
Follow-up of Mid-Term Business Plan Ⅰ． Definition of the Follow-up of Mid-Term Business Plan (May 2009) We revised some parts, such as income and expenditure targets, of JAPEX Group Mid-Term Business Plan announced in May 2008 in light of the rapid deterioration of the global economic situation an
Slide 9: Basic strategies for JAPEX expansion
Follow-up of Mid-Term Business Plan Ⅱ．Basic strategies for JAPEX expansion Three basic strategies for expansion and current approaches Basic strategy Outline Current approaches ・Acquisition of E&P right relating to Garraf oil field in Iraq 1. 1.Sustaining Sustaining ・Maintaining and expanding rese
Slide 10: Revision of preconditions: crude oil price and exchange rate
Follow-up of Mid-Term Business Plan Ⅲ． Revision of preconditions （ Assumptions of crude oil price and exchange rate ） We assume the preconditions as below, reflecting the steady recovery of the crude oil price after 2009 ： price Expected to keep a plateau of $80/bbl after FY11 Crude oil price： Excha
Slide 11: Progress: Proved reserves
Follow-up of Mid-Term Business Plan Ⅳ． Progress toward the achievement of the numerical targets 1．Proved reserves Our target is to double our proved reserves from ones as of end-March 2007 to 350 million BOE by end-March 2013. Proved reserves as of end-March 2010 decreased by 18 million BOE (aro
Slide 12: Progress: Natural gas sales volume
Follow-up of Mid-Term Business Plan Ⅳ．Progress toward the achievement of the numerical targets 2．Natural gas sales volume Target for natural gas sales volume (including LNG satellite supply) is 2.0 billion m3 by FY2014. FY08 to FY10･････ sales volume remained roughly flat mainly due to the economic
Slide 13: Income and expenditure (1)
Follow-up of Mid-Term Business Plan Ⅳ．Progress toward the achievement of the numerical targets 3．Income and expenditure (1) Target for net sales of natural gas and domestically produced crude oil is ¥110 billion in FY2013 on the assumption of crude oil price of US$80/bbl. Estimated net sales of natu
Slide 14: Consolidated income and Operating cash flows
Follow-up of Mid-Term Business Plan Ⅳ．Progress toward the achievement of the numerical targets 3．Income and expenditure (2) Consolidated income and Operating cash flows Estimated Net income of FY09 to FY13(average) is assumed to amount to ¥15 billion, up ¥4 billion（36％） compared to May 2009 revis
Slide 15: Estimated capital expenditure and depreciation and amortization
Follow-up of Mid-Term Business Plan 【For Reference】 Estimated capital expenditure and depreciation and amortization Consolidated depreciation and amortization will decrease after its peak in FY2012. We expected depreciation and amortization would reach a peak in around FY2011-2013 at the time of M
Slide 16: Allocations of operating cash flows
Follow-up of Mid-Term Business Plan Ⅳ．Progress toward the achievement of the numerical targets 3．Income and expenditure(3) Allocations of operating cash flows （Revision） The following projects are added to the investment plan. 1. the development of Garraf oil field in Iraq 2. the Hangingstone oil sa
Slide 17: Summary
Follow-up of Mid-Term Business Plan VI . Summary We announced the partial revision of the Mid-Term Business Plan in May 2009. In the light of subsequent situations such as a steady rise in crude oil price and some signs of an economic recovery, we make a follow-up of the Mid-Term Business Plan for
Slide 18: Domestic exploration plan for FY2011
Business Overview Domestic exploration plan for FY2011 Exploration and Extension well drilling schedule FY2011 Total 1Q 2Q 3Q 4Q Depth 4 5 6 7 8 9 10 11 12 1 2 3 Akebono SK-5D Extension well 5,100 m Akebono SK-5D Otomo A1 Exploration well 3,100 m (5,100m) ○ Geophysical prospecting survey plan •
Slide 19: CAPEX plan for FY2011
Business Overview CAPEX plan for FY 2011 FY11 billion yen billion yen [Unit: billion yen] FY08 FY09 FY10 (e) 45 45 Capital expenditure 41.7 30.9 28.8 31.5 40 5.1 40 Depreciation and amortization 16.6 21.5 23.2 24.7 35 35 30 0.7 30 4.7 11.6 Main items of CAPEX for FY2011 25 25 24.7 20 36.6 23.2 20 Do
Slide 20: Overseas business: Basic Strategy
Business Overview Overseas business: Basic Strategy Ensure an appropriate portfolio balance both exploration projects & development projects Set strategic regions, continue the regions-focused strategy Seek up-stream & mid-stream LNG projects Canada Oil sands development Iran: JJI S&N (production) S
Slide 21: Overseas business: Canada oil sands
Business Overview Current status of overseas business ① Canada： Oil sands Canada Oil Sands Co., Ltd. Operator: Japan Canada Oil Sands Limited (JACOS) Consolidated subsidiary (86.64% owned by JAPEX) (Canadian subsidiary, wholly owned by Canada Oil Sands Co., Ltd. ) Production Area: Areas in whi
Slide 22: Overseas business: Iraq Garraf oil field
Business Overview Current status of overseas business ② Iraq： Garraf oil field ■ Type of Contract: Development and Production Service Contract ■ Counterparty: South Oil Company (SOC) ■ Contract term: 20years（may be extended for a maximum 5 years） ■ Effective date: February 10, 2010 Contractors: Nor
Slide 23: Overseas business: Sakhalin 1 Project
Business Overview Current status of overseas business ③ Sakhalin: Sakhalin 1 Project OVERVIEW Sakhalin 1 Consortium 0 5 10 Company Country Interest Odoptu Kilometers Exxon Neftegas Ltd. U.S. 30.0% Odoptu PAD#2 Sakhalin Oil and Gas Japan 30.0% Development Co., Ltd. PAD#1 Sakhalinmorneftegas-Shelf Rus
Slide 24: Overseas business: Libya Block 40-3/4, Block 176-4
Business Overview Current status of overseas business ④ Libya: Block 40-3/4, Block 176-4 Japex Libya Ltd.: Consolidated subsidiary (wholly owned by JAPEX) Offshore Block 40-3/4 (coastal area of the Mediterranean Sea) Interest： 42% (Operator) Operating result and plan: Tripoli Block 40-3/4 Mar.
Slide 25: Overseas business: Indonesia Kangean Block
Business Overview Current status of overseas business ⑤ Indonesia: Kangean Block Kangean Energy Indonesia Ltd. (KEI) and two other companies： companies： Equity- Equity-method affiliates Block Name: Kangean Block (offshore East Java） JAPEX Interest：25% Jakarta Operator: KEI Current gross pr
Slide 26: Overseas business: Indonesia Block A
Business Overview Current status of overseas business ⑥ Indonesia: Block A Japex Block A Ltd. ：Consolidated subsidiary (wholly owned by JAPEX) (state-run electric power company) (state-run fertilizer plant) 3 gas development fields Block Name: Block A (northern Sumatra) □ Interest: 16.67% □ Oper
Slide 27: Overseas business: Indonesia Buton Block
Business Overview Current status of overseas business ⑦ Indonesia: Buton Block Japex Buton Ltd.: Consolidated subsidiary (wholly owned by JAPEX) Block Name: Buton Block (onshore/offshore block on Buton Island, Southeast Sulawesi) Interest: 40% Operator: Japex Buton Ltd. Operating results and
Slide 28: Technological R&D initiatives
Business Overview Technological R&D initiatives CCS ( Carbon-dioxide Capture and Storage ) Japan CCS Co., Ltd. (incorporated May 2008) is engaged in the following studies for the implementation of large-scale CCS demonstrations in Japan. ・Feasibility Study on a Total System from Electric Power Gene
Slide 29: Consolidated Financial Results for the Fiscal Year Ended March 31, 2010
Actual Results Consolidated Financial Results for the Fiscal Year Ended March 31, 2010 Senior Managing Director Hiroshi Sato 29
Slide 30: Consolidated financial results for FY ended March 31, 2010 (Highlight)
Actual Results Consolidated financial results for the fiscal year ended March 31, 2010 (Highlight) FY2010 FY2008 FY2009 Initial estimate Revised estimate(1) Revised estimate(2) Revised estimate(3) Actual [ million Yen] announced May 14 announced Aug.7 announced Nov.6 announced Feb.9 result (a) (a) (
Slide 31: Actual sales of Crude oil, FY ended March 31, 2010
Actual Results Actual sales of Crude oil in the fiscal year ended March 31, 2010 (YoY comparison) FY2008 FY2009 FY2010 YoY change 1Q-2Q 1Q-4Q 1Q-2Q 1Q-4Q 1Q-2Q 1Q-4Q 1Q-2Q 1Q-4Q (a) (a) (a) (a) (a) (a) Sales volume [thousand KL] 1,227 2,450 1,028 2,337 967 2,125 ( 60) ( 211) Crude oil: Net sales [mi
Slide 32: Actual sales of Natural gas, FY ended March 31, 2010
Actual Results Actual sales of Natural gas in the fiscal year ended March 31, 2010 (YoY comparison) FY2008 FY2009 FY2010 YoY change 1Q-2Q 1Q-4Q 1Q-2Q 1Q-4Q 1Q-2Q 1Q-4Q 1Q-2Q 1Q-4Q (a) (a) (a) (a) (a) (a) Sales volume [million m3] 631 1,486 647 1,485 643 1,499 ( 3) 13 Natural gas: Net sales [million
Slide 33: Causes of income fluctuations (YoY comparison)
Actual Results Consolidated financial results for the fiscal year ended March 31, 2010: Causes of income fluctuations (YoY comparison) FY09 FY10 ≪Causes of increase or decrease (MEMO)≫ [ million Yen ] 1Q-4Q 1Q-4Q YoY change (a) (a) Gross profit Domestic crude oil and natural gas (¥5.0 billion) Net s
Slide 34: Forecasts for the Fiscal Year Ending March 31, 2011
Forecasts Forecasts for the Fiscal Year Ending March 31, 2011 Senior Managing Director Hiroshi Sato 34
Slide 35: Consolidated financial estimates for FY ending March 31, 2011
Forecasts Consolidated financial estimates for the fiscal year ending March 31, 2011 – Main points compared with previous year FY2009 FY2010 FY2011 YoY change [ million Yen] 1Q-2Q 1Q-4Q 1Q-2Q 1Q-4Q 1Q-2Q 1Q-4Q 1Q-2Q 1Q-4Q (a) (a) (a) (a) (e) (e) Net sales 110,912 202,127 70,567 179,752 91,123 196,89
Slide 36: Estimated Crude oil sales for FY ending March 31, 2011
Forecasts Estimated Crude oil sales for the fiscal year ending March 31, 2011 FY2009 FY2010 FY2011 YoY change 1Q-2Q 1Q-4Q 1Q-2Q 1Q-4Q 1Q-2Q 1Q-4Q 1Q-2Q 1Q-4Q (a) (a) (a) (a) (e) (e) Sales volume [thousand KL] 1,028 2,337 967 2,125 969 2,017 2 ( 108) Crude oil: Net sales [million Yen] 73,668 115,933
Slide 37: Estimated Natural Gas sales for FY ending March 31, 2011
Forecasts Estimated Natural Gas sales in the fiscal year ending March 31, 2011 FY2009 FY2010 FY2011 YoY change 1Q-2Q 1Q-4Q 1Q-2Q 1Q-4Q 1Q-2Q 1Q-4Q 1Q-2Q 1Q-4Q (a) (a) (a) (a) (e) (e) Sales volume [million m3] 647 1,485 643 1,499 706 1,576 63 77 Natural gas: Net sales [million Yen] 22,906 54,126 24,9
Slide 38: Causes of income fluctuations, FY ending March 31, 2011
Forecasts Consolidated financial estimates for the fiscal year ending March 31, 2011 Causes of income fluctuations (YoY comparison) FY10 FY11 [ million Yen ] 1Q-4Q 1Q-4Q YoY change ≪Causes of increase or decrease (MEMO)≫ (a) (e) Net sales 179,752 196,891 17,138 Gross profit Domestic crude oil and na
Slide 39: Oil price and exchange rate assumptions and impact on profits
Forecasts Oil price and exchange rate assumptions in the fiscal year ending March 31, 2011 and impact on profits FY2009 FY2010 FY2011 [Oil price and Exchange rate 1-4Q 1-4Q 1H (1-2Q) 2H (3-4Q) 1-4Q YoY change assumptions] (a) (a) (e) (e) (e) JCC price ( USD / bbl ) 89.71 67.50 80.00 80.00 80.00 12.5
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