According to the company’s website press release on February 10, 2023, Japan Petroleum Exploration Co., Ltd. (JAPEX) hereby revised its consolidated financial forecasts and year-end dividend forecasts for the fiscal year ending March 31, 2023, which was disclosed on November 10, 2022, based on our recent business trends and performance. Also, we have recorded non-operating expenses and non-operating income in the third quarter of the fiscal year ending March 31, 2023, which is from October 1, 2022 to December 31, 2022.
Revision of Year-end Dividend Forecast
Reasons of revision
Our basic policy for profit distribution is to pay dividends in line with business results for each fiscal year, with a target consolidated dividend payout ratio of 30%. Based on this policy, we have revised our year-end dividends forecast to be increased to 180 yen per share, resulting in annual total dividends forecasted to be 330 yen, in conjunction with the revision of the consolidated financial forecasts for the fiscal year ending March 31, 2023 which was disclosed.
Recording of Non-operating Expenses and Non-operating Income
Foreign exchange losses
In the third quarter of the fiscal year ending March 31, 2023, foreign exchange losses of 4,312 million yen were recorded as a non-operating expense. This was mainly due to the revaluation of foreign currencydenominated assets and liabilities held by the JAPEX Group, revaluated by the exchange rate at the end of the quarter.
Since foreign exchange gains of 9,176 million yen were recorded as non-operating income for six months ended in September 30, 2022, foreign exchange gains for nine months ended in December 31, 2022 amounted to 4,864 million yen.
Gain on derivatives
In the second quarter of the fiscal year ending March 31, 2023, we recorded 6,446 million yen as a gain on valuation of derivatives under non-operating income, based on the mark-to-market valuation of book-out transactions related to LNG conducted during the same period. In the third quarter of the same period, we recorded 6,082 million yen as a gain on derivatives in non-operating income (a decrease of 363 million yen from the second quarter of the same period) instead of a gain on valuation of derivatives, since the gain was determined at the time of settlement of the transaction.
