Japan's Japex raises profit forecast on higher oil, weaker yen
10/11/2023 09:30
TOKYO, Nov 10 (Reuters) - Japan Petroleum Exploration Co
(Japex) 1662.T on Friday raised its full-year net profit and
dividend forecast as higher-than-expected oil prices and weaker
yen are set to support results.
Japex increased net profit forecast for the year ending in
March 2024 by 32% to 45 billion yen ($297.2 million) from its
August prediction and raised annual dividend forecast to 250 yen
per share from 200 yen.
"We now expect stronger earnings as firmer-than-expected oil
prices and the yen's depreciation will boost our sales prices of
oil and natural gas," Michiro Yamashita, senior managing
executive officer, told a press conference.
Its half-year net profit was down 12% to 27.8 billion yen
due to a fall in oil prices from a year earlier and smaller
gains from its equity holdings in some overseas energy projects.
An absence of profit contribution from Russia's Sakhalin 1
oil and gas project where Japex holds a stake via Sakhalin Oil
and Gas Development Co (SODECO) reduced non-operating profit by
about 3 billion yen for the first-half, Yamashita said.
SODECO, the Japanese consortium, owns a 30% stake in the
Sakhalin-1 project.
Russian President Vladimir Putin signed a decree last year,
establishing a new operator for the Exxon-led Sakhalin-1, after
the U.S. company decided to leave following Russia's invasion of
Ukraine.
Japan's SODECO, Russia's Rosneft ROSN.MM and India's ONGC
Videsh ONVI.NS continue operations there.
"SODECO's participation was granted, but discussions are
still ongoing with the new operator on how the shareholders
should get involved in the business and operations," Yamashita
said, adding that Japex has not factored in any profit
contribution from Sakhalin-1 for the current business year.
($1 = 151.4100 yen)
(Reporting Yuka Obayashi and Katya Golubkova
Editing by Tomasz Janowski)
((ekaterina.golubkova@thomsonreuters.com;))