MIRA INFORM REPORT

 

 

Report No. :

325171

Report Date :

06.06.2015

 

IDENTIFICATION DETAILS

 

Name :

JAPAN PETROLEUM EXPLORATION CO LTD (JAPEX)

 

 

Registered Office :

1-7-12 Marunouchi Chiyodaku Tokyo 100^--65

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

April 1970

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Resource developer/exploitation, owning 3 oil fields domestically: petroleum & natural gas (79%), contracts (3%), others (18%)

 

 

No. of Employees :

1,829

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

 

 

Status :

Good

Payment Behaviour :

Regular

Litigation :

Clear

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

JAPAN - ECONOMIC OVERVIEW

 

In the years following World War II, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) helped Japan develop a technologically advanced economy. Two notable characteristics of the post-war economy were the close interlocking structures of manufacturers, suppliers, and distributors, known as keiretsu, and the guarantee of lifetime employment for a substantial portion of the urban labor force. Both features are now eroding under the dual pressures of global competition and domestic demographic change. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become heavily dependent on imported raw materials and fuels. A small agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. While self-sufficient in rice production, Japan imports about 60% of its food on a caloric basis. For three decades, overall real economic growth had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the after effects of inefficient investment and an asset price bubble in the late 1980s that required a protracted period of time for firms to reduce excess debt, capital, and labor. Modest economic growth continued after 2000, but the economy has fallen into recession four times since 2008. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan into recession. Government stimulus spending helped the economy recover in late 2009 and 2010, but the economy contracted again in 2011 as the massive 9.0 magnitude earthquake and the ensuing tsunami in March disrupted manufacturing. A sales tax increase caused the economy to contract during the 2nd and 3rd quarters of 2014. The economy has largely recovered in the three years since the disaster, but reconstruction in the Tohoku region has been uneven due to labor shortages. Prime Minister Shinzo ABE has declared the economy his government's top priority; he has overturned his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus, monetary easing, and structural reform. Japan joined the Trans Pacific Partnership negotiations in 2013, a pact that would open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2014 stood as the fourth-largest economy in the world after second-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. The government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which amounts to more than 240% of GDP. To help raise government revenue and reduce public debt, Japan decided in 2013 to gradually increase the consumption tax to a total of 10% by 2015, although the government in 2014 decided to postpone the final phase of the increase until 2017 to give the economy time to recover from the 2014 increase. Japan is making progress on ending deflation due to a weaker yen and higher energy costs, but reliance on exports to drive growth and an aging, shrinking population pose other major long-term challenges for the economy.

 

Source : CIA

Company name

 

JAPAN PETROLEUM EXPLORATION CO LTD (JAPEX)

 

 

REGD NAME

 

Sekiyu Shigen Kaihatsu KK

 

 

MAIN OFFICE

 

1-7-12 Marunouchi Chiyodaku Tokyo 100^--65 JAPAN

Tel: 03-6268-7000     Fax: 03-6268-7300     -

 

URL:                 http://www.japex.co.jp

E-Mail address: (thru the URL)

 

ACTIVITIES:     Resource Development (Crude/natural gas/etc)

BRANCHES:     Tomakomai, Akita, Nagaoka, other (Tot 9)

OVERSEAS:     USA, UK, Canada, UAE, Indonesia, China

FACTORIES:    Nagaoka, Tomakomai, Akita (--oil/natural gas fields)

 

CHIEF EXEC:   OSAMU WATANABE, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 304,911 M

PAYMENTSREGULAR               CAPITAL           Yen 14,288 M

TREND UP                                WORTH            Yen 540,647 M

STARTED         1970                             EMPLOYES      1,829

 

COMMENT:      OIL/NATURAL GAS DEVELOPER FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

Unit: In Million Yen

Forecast figures for the 31/03/2016 fiscal term.

 

 

HIGHLIGHTS

 

This is a resource development and exploring company.   Owns crude oil and natural gas fields in Niigata-Pref, Hokkaido and Akita-Pref.  With domestic exploration and marketing of crude oil and natural gas as mainline, aggressively engaged in development of overseas oil & gas fields such as oil sands in Australia & Russia.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 304,911 million, a 10.2% up from Yen 276,588 million in the previous term.  The recurring profit was posted at Yen 54,839 million and the net profit at Yen 29,567 million, respectively, compared with Yen 43,889 million recurring profit and Yen 29,015 million net profit, respectively, a year ago.

 

For the current term ending Mar 2016 the recurring profit is projected at Yen 14,012 million and the net profit at Yen 11,705 million, respectively, on an 11.1% fall in turnover, to Yen 271,118 million.            

 

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

 

REGISTRATION

           

Date Registered:　          Apr 1970

Legal Status:                Limited Company (Kabushiki Kaisha

Authorized:                              120 million shares

Issued:                         57,154,776 shares

Sum:                            Yen 14,288 million

 

Major shareholders (%): Minister of Economy, Trade Industry (34.0), Inpex Corp (4.9), Master Trust Bank of Japan t (3.2), JFE Engineering (3.2), Japan Trustee Services T (2.9), other; foreign owners (24.8)

 

No. of shareholders: 15,477

 

Listed on the S/Exchange (s) of: Tokyo

 

Managements: Yuji Tanahashi, ch; Osamu Watanabe, pres; Shoichi Ishii, v pres; Jun’ichi Matsumoto, v pres; Mitsuru Saito, s/mgn dir; Nobuyuki Ogura, s/mgn dir; Kazuo Nakayama, s/mgn dir; Kiyoshi Ogino, s/mgn dir; Hitoshi Yamatodani, mgn dir; Mitsuru Fukasawa, mgn dir; Yosuke Higai, mgn dir; Shigeru Mike, mgn dir; Motofumi Hyodo, mgn dir

 

Nothing detrimental is known as to the commercial morality of executives.

 

Related companies: JACOS, JAPEX Offshore Ltd, other.

 

 

OPERATION

           

Activities: Resource developer/exploitation, owning 3 oil fields domestically: petroleum & natural gas (79%), contracts (3%), others (18%)

 

Overseas Sales Ratio (32%)

           

Clients: [Mfrs, wholesalers] PP Japan, Tohoku Electric Power, Showa Shell Sekiyu,         Taiyo Oil, Hokkaido Gas, other

No. of accounts: 250

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Sakhalin Oil & Gas Developer, JX Nippon Oil & Energy Corp, Hokkaido Gas, other

 

Payment record: Regular

 

Location: Business area in Tokyo.  Office premises at the caption address are leased and maintained satisfactorily.

 

Bank References:

Mizuho Bank (H/O)

MUFG (H/O)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2015

31/03/2014

INCOME STATEMENT

　

　

  Annual Sales

　

304,911

276,588

　

  Cost of Sales

234,649

210,460

　

      GROSS PROFIT

70,262

66,127

　

  Selling & Adm Costs

38,116

41,493

　

      OPERATING PROFIT

32,146

24,634

　

  Non-Operating P/L

22,423

19,255

　

      RECURRING PROFIT

54,839

43,889

　

      NET PROFIT

29,567

29,015

BALANCE SHEET

　

　

  Cash

　

92,956

81,031

　

  Receivables

25,248

37,222

　

  Inventory

12,289

11,066

　

  Securities, Marketable

45,605

41,203

　

  Other Current Assets

22,094

24,687

　

      TOTAL CURRENT ASSETS

198,192

195,209

　

  Property & Equipment

289,718

200,552

　

  Intangibles

9,949

11,365

　

  Investments, Other Fixed Assets

239,003

255,912

　

      TOTAL ASSETS

736,862

663,038

　

  Payables

6,728

23,610

　

  Short-Term Bank Loans

50,809

28,169

　

　

　

　

　

  Other Current Liabs

55,331

31,675

　

      TOTAL CURRENT LIABS

112,868

83,454

　

  Debentures

　

　

　

  Long-Term Bank Loans

20,726

21,636

　

  Reserve for Retirement Allw

3,534

6,845

　

  Other Debts

　

59,086

54,188

　

      TOTAL LIABILITIES

196,214

166,123

　

      MINORITY INTERESTS

　

　

Common stock

14,288

14,288

　

Additional paid-in capital

　

　

　

Retained earnings

346,441

318,433

　

Evaluation p/l on investments/securities

86,174

84,856

　

Others

93,754

79,348

　

Treasury stock, at cost

(10)

(10)

　

      TOTAL S/HOLDERS` EQUITY

540,647

496,915

　

      TOTAL EQUITIES

736,862

663,038

 

 

 

 

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2015

31/03/2014

　

Cash Flows from Operating Activities

　

78,666

45,226

　

Cash Flows from Investment Activities

-63,031

-131,600

　

Cash Flows from Financing Activities

18,475

71,680

　

Cash, Bank Deposits at the Term End

　

142,657

102,830

 

 

 

 

 

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

　

Net Worth (S/Holders' Equity)

540,647

496,915

　

Current Ratio (%)

175.60

233.91

　

Net Worth Ratio (%)

73.37

74.95

　

Recurring Profit Ratio (%)

17.99

15.87

　

Net Profit Ratio (%)

9.70

10.49

　

　

Return On Equity (%)

5.47

5.84

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.90

UK Pound

1

Rs.71.82

Euro

1

Rs.97.97

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TPT

 

               

RATING EXPLANATIONS

 

RATING

STATUS

PROPOSED CREDIT LINE

 

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

 

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

 

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

 

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

 

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

 

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

Credit not recommended

 

--

NB

New Business

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.