Japan Petroleum Exploration Co., Ltd.
1662・Prime Market・Mining
Other Businesses (within the Japan segment)
Domestic complementary business segment covering well-drilling contract work and petroleum product sales
| Period | Current | Previous | Change |
|---|---|---|---|
| Other Businesses net sales (full year) | ¥58,730 million | ¥70,891 million | ↓ |
| Of which contract work sales (full year) | ¥10,807 million | ¥8,572 million | ↑ |
| Of which petroleum products/goods sales (full year) | ¥45,441 million | ¥59,598 million | ↓ |
| Of which other sales (full year) | ¥2,481 million | ¥2,720 million | ↓ |
Business Details
Other Businesses mainly comprises contract work for well drilling and workover operations (SK Engineering Co., Ltd.), contract work for well logging and mud logging operations (Geophysical Survey Consultants Co., Ltd.), contract work for geophysical exploration operations (Japan Petroleum Exploration Research Institute Co., Ltd.), and sales of petroleum products such as LPG, heavy oil, diesel oil, and kerosene (JAPEX Energy Co., Ltd., excluded from consolidation as of December 25, 2025). This segment mainly consists of technical services provided internally within the group and petroleum product sales to external customers, but its composition will change significantly from the next fiscal period onward following the transfer of JAPEX Energy (JPE).
Recent Overview
Petroleum product sales disappeared following completion of the JPE transfer, offset by increased contract work sales
Other Businesses net sales for the full year of FY2026 (ending March 2026) were ¥58,730 million, down ¥12,160 million (-17.2%) year on year. Following the transfer of JAPEX Energy Co., Ltd. (JPE) to Astomos Energy Corporation on December 25, 2025, and its exclusion from consolidation, petroleum products/goods sales declined significantly to ¥45,441 million (from ¥59,598 million in the prior period). Meanwhile, contract work sales increased to ¥10,807 million (from ¥8,572 million in the prior period). In connection with the JPE transfer, a loss on sale of subsidiary shares of ¥467 million was recorded as an extraordinary loss.
Key Products
Growth Drivers
- Contract work sales are linked to the group's E&P investment activities, and progress in North American (expansion via the VRIH acquisition) and domestic development projects supports demand
- Following the JPE transfer, the business may shift toward an earnings structure focused on contract work and technical services, potentially improving earnings quality
Risks
- The exclusion of JAPEX Energy Co., Ltd. from consolidation (December 25, 2025) eliminates petroleum products/goods sales (¥59,598 million in the prior period), which is expected to significantly reduce segment sales from the next fiscal period onward
- Contract work sales are subject to a structural risk of being affected by fluctuations in the level of group internal E&P investment, with demand tending to decline during phases of reduced exploration expenditure
- Rising prices of materials/equipment and labor costs (also confirmed in the change in estimates for asset retirement obligations) push up contract work costs, posing a risk of profitability pressure
Last updated: June 19, 2026