Japex lifts FY22/23 profit forecast on higher natural gas prices

Japan Petroleum Exploration Co

10/02/2023 11:09

TOKYO, Feb 10 (Reuters) - Japan Petroleum Exploration Co
Ltd (Japex)  1662.T  on Friday lifted its full-year net profit
forecast by 13% on higher selling prices of natural gas and
electricity to domestic customers, and also raised its annual
dividend estimate.    
    The company now expects net profit to reach a record 60
billion yen ($458 million) for the year to March 31, against its
November estimate of 53 billion yen. 
    The annual dividend is now forecast at 330 yen per share, up
30 yen from the previous guidance.
    "Higher prices of liquefied natural gas (LNG) were the
biggest booster to our profit," Michiro Yamashita, senior
managing executive officer, told a news conference.
    Japan's LNG import prices have risen in the current
financial year in a reflection of soaring global spot LNG
prices, but Japex was able to avoid a surge in its procurement
costs as it buys the fuel mostly under term contracts, he said.
    Meanwhile, the company's selling prices of natural gas and
electricity to Japanese customers climbed to reflect the
country's LNG import prices, boosting Japex's profit.
    For the nine months ended Dec. 31, net profit came to 43.3
billion yen, against a loss of 85.1 billion yen a year earlier. 
    The rosy outlook came despite a smaller contribution from
the company's stake in Sakhalin Oil and Gas Development
(SODECO), the Japanese consortium that owns a 30% stake in the
Sakhalin-1 oil and gas project in Russia.
    The company expects a 4.2 billion yen profit from the stake
in the January-October period, before SODECO joined with the new
Russian operator of the project, Yamashita said.
    Japex booked a 12.4 billion yen profit from the stake in the
formerly Exxon Mobil Corp-led  XOM.N  project last financial
year.
    SODECO has been in talks with the new operator and the
Russian government about the future operation of the project
since November, Yamashita said.
    ($1 = 130.9600 yen)
 (Reporting by Yuka Obayashi
Editing by Mark Potter)
 ((Yuka.Obayashi@thomsonreuters.com; +813-4520-1265;))