Japan Petroleum Exploration Co., Ltd. announced consolidated and non-consolidated earnings results for the year ended March 31, 2018. For the year, on consolidated basis, the company reported net sales of JPY 230,629 million, operating profit of JPY 8,764 million, ordinary profit of JPY 3,828 million, Loss before income taxes of JPY 69,403 million, Loss attributable to owners of parent of JPY 30,958 million or JPY 541.69 per basic share, negative return on equity of 7.2% net cash provided by operating activities of JPY 52,881 million and purchase of property, plant and equipment of JPY 42,534 million compared to the net sales of JPY 207,130 million, operating profit of JPY 685 million, ordinary profit of JPY 2,222 million, profit before income taxes of JPY 3,192 million, profit attributable to owners of parent of JPY 3,443 million or JPY 60.24 per basic share, return on equity of 0.8% net cash provided by operating activities of JPY 43,672 million and purchase of property, plant and equipment of JPY 70,250 million for the previous year. The increase in profit before income taxes was mainly due to a decrease in impairment loss and the recognition of gain on sales of non-current assets. Purchase of intangible assets was JPY 323 million against JPY 720 million a year ago.

For the year, on non-consolidated basis, the company reported net sales of JPY 165,134 million, operating profit of JPY 11,625 million, ordinary profit of JPY 20,292 million and loss of JPY 26,665 million or JPY 466.56 per basic share compared to net sales of JPY 150,137 million, operating profit of JPY 7,938 million, ordinary profit of JPY 16,473 million and profit of JPY 15,063 million or JPY 263.57 per basic share a year ago.

The company provided consolidated earnings guidance for the year ending March 31, 2019. For the year, the company's net sales for the fiscal year ending March 31, 2019 is expected to increase by JPY 35,019 million (+15.2%) from the fiscal year under review to JPY 265,649 million. This is due to an expected increase in sales mainly reflecting growth in sales volumes for diluted bitumen.
Operating profit is expected to decrease by JPY 8,121 million (-92.7%) from the fiscal year under review to JPY 644 million. This is primarily due to expected increases in operating costs associated with the year-round operation of the Soma LNG terminal, and in transportation costs associated with the growth in sales volumes for diluted bitumen products. Ordinary profit is expected to increase by JPY 6,119 million (+159.8%) from the fiscal year under review to JPY 9,947 million. This mainly reflects expectations such as that ordinary profit will no longer be impacted by the depreciation of inactive non-current assets associated with JACOS' DEMO Area, recorded in the fiscal year under review. Profit attributable to owners of parent is expected to increase by JPY 40,446 million from the fiscal year under review to JPY 9,487 million. This is due to an expectation that profit attributable to owners of parent will no longer be impacted by the impairment loss, etc., associated with JML's Upstream Project, recorded in the fiscal year under review.