FY2026 March 3Q Financial Presentation Materials

Overview of Financial Performance

Operating income for the third quarter of FY2026 March was 32 billion yen, a 28% decrease compared to the same period last year. Ordinary income increased by 5% to 49.2 billion yen; however, net income attributable to owners of parent for the quarter fell 47% to 39.7 billion yen. The decrease in operating income was mainly due to declines in crude oil and natural gas sales prices, while ordinary income benefited from a turnaround from equity-method investment losses to gains. An increase in foreign exchange gains also boosted ordinary income, but a drop in gains on sales of investment securities led to a net income decline.

Segment Performance and Business Progress

The E&P business recorded revenue of 82.734 billion yen, down 14% YoY, impacted by reduced crude oil sales volume and lower sales prices. The Infrastructure & Utility business posted revenue of 126.386 billion yen, a 2% decrease mainly due to reduced LNG sales volume. Operating income in overseas E&P fell from 20.3 billion yen to 17.5 billion yen, and domestic E&P decreased from 20 billion yen to 11.8 billion yen. Other businesses saw operating income deteriorate due to increased administrative expenses.

Revision of Earnings Forecast

For FY2026 March, the earnings forecast was revised upward: operating income was increased from 35 billion yen to 39 billion yen, ordinary income from 44 billion yen to 55 billion yen, and net income attributable to owners of parent from 36 billion yen to 45 billion yen. The main factors were increased overseas sales and foreign exchange gains due to yen depreciation. Revenue is expected to be 3.47 trillion yen, gross profit 766 billion yen, and operating income 39 billion yen.