（１）Summary of Consolidated Operating Results

Regarding the Company’s consolidated financial results for the nine months ended September 30, 2024, revenue increased by ¥145.3 billion, or 9.1%, to ¥1,747.5 billion from the corresponding period of the previous fiscal year due to the depreciation in the average exchange rate of the Japanese yen against the U.S. dollar during the period. Revenue of crude oil increased by ¥159.9 billion, or 13.7%, to ¥1,327.7 billion, and revenue of natural gas (excluding LPG) decreased by ¥14.5 billion, or 3.5%, to ¥398.0 billion. Sales volume of crude oil increased by 900 thousand barrels, or 0.9%, to 105,628 thousand barrels, and sales volume of natural gas increased by 3,368million cf, or 0.9%, to 366,090million cf. Sales volume of overseas natural gas increased by 2,699million cf, or 0.9%, to 293,509million cf, and sales volume of domestic natural gas increased by 18 million ㎥, or 0.9%, to 1,938 million ㎥ (72,313 million cf). The average sales price of overseas crude oil increased by US$2.32, or 2.9%, to US$82.99 per barrel. The average sales price of overseas natural gas decreased by US$0.20, or 3.5%, to US$5.56 per thousand cf, and the average sales price of domestic natural gas decreased by ¥16.65, or 17.7%, to ¥77.31 per m 3 . The average exchange rate of the Japanese yen against the U.S. dollar on consolidated revenue increased by ¥13.31, or 9.6%, to ¥151.46 per U.S. dollar.

The increase of ¥145.3 billion in revenue was mainly derived from the following factors: regarding revenue of crude oil and natural gas, an increase in sales volume contributing ¥14.2 billion to the increase, a decrease in unit sales price contributing ¥9.2 billion to the decrease, and the depreciation in the average exchange rate of the Japanese yen against the U.S. dollar contributing ¥140.3 billion to the increase.

Meanwhile, cost of sales increased by ¥66.1 billion, or 10.4%, to ¥701.7 billion. Exploration expenses increased by ¥42.9 billion, or 507.6%, to ¥51.3 billion. Selling, general and administrative expenses increased by ¥26.0 billion, or 35.5%, to ¥99.6 billion. Other operating income increased by ¥19.8 billion, or 126.4%, to ¥35.5 billion. Other operating expenses decreased by ¥90.7 billion, or 93.2%, to ¥6.6 billion. Share of profit of investments accounted for using equity method increased by ¥82.3 billion, or 684.1%, to ¥94.4 billion. As a result, operating profit increased by ¥203.1 billion, or 24.9%, to ¥1,018.0 billion.

Finance income decreased by ¥54.9 billion, or 32.7%, to ¥112.8 billion. Finance costs increased by ¥23.2 billion, or 39.3%, to ¥82.5 billion. As a result, profit before tax increased by ¥124.9 billion, or 13.5%, to ¥1,048.4 billion.

Income tax expense increased by ¥88.4 billion, or 13.5%, to ¥744.8 billion. Profit attributable to non-controlling interests increased by ¥13.2 billion, to ¥14.1 billion. As a result of the above effects, profit attributable to owners of parent increased by ¥23.2 billion, or 8.7%, to ¥289.4 billion.

Operating results by segment are as follows:
　

1) Oil & Gas Japan
Revenue decreased by ¥31.5 billion, or 16.7%, to ¥157.9 billion due to a decrease in sales price of natural gas. Profit attributable to owners of parent decreased by ¥25.3 billion, or 68.6%, to ¥11.6 billion

2) Oil & Gas Overseas - Ichthys Project
Although revenue increased by ¥9.0 billion, or 3.3%, to ¥282.6 billion due to an increase in the depreciation of the Japanese yen against the U.S. dollar, profit attributable to owners of parent decreased by ¥36.9 billion, or 15.8%, to ¥196.6 billion due to an increase in exploration expenses and others.

3) Oil & Gas Overseas - Other Projects
Revenue increased by ¥162.6 billion, or 14.5%, to ¥1,282.0 billion due to the depreciation of the Japanese yen against the U.S. dollar and an increase in sales volume. Profit attributable to owners of parent increased by ¥85.9 billion, to ¥92.6 billion.

（２）Summary of Consolidated Financial Position

Total assets as of September 30, 2024 increased by ¥254.7 billion to ¥6,994.2 billion, compared to December 31, 2023. Current assets increased by ¥213.2 billion to ¥1,051.6 billion due to an increase in cash and cash equivalents, and others. Non-current assets increased by ¥41.5 billion to ¥5,942.6 billion due to an increase in investments accounted for using equity method and others.

Meanwhile, total liabilities increased by ¥150.3 billion to ¥2,390.8 billion. Current liabilities increased by ¥240.0 billion to ¥812.2 billion and non-current liabilities decreased by ¥89.6 billion to ¥1,578.6 billion.

Total equity increased by ¥104.3 billion to ¥4,603.4 billion. Equity attributable to owners of parent increased by ¥100.7 billion to ¥4,309.8 billion. Non-controlling interests increased by ¥3.6 billion to ¥293.5 billion.

（３）Explanation Regarding Future Forecast Information Such as Forecasts for Consolidated Financial Results

The Company revised its consolidated financial forecasts for the year ending December 31, 2024 mainly due to a revision in the tax cost forecast, despite a slight decrease in the forecasted sales volume.

Forecasts for consolidated financial results for the year ending December 31, 2024 　

The above forecasts are calculated based on the following assumptions: 　

Crude oil prices at which the Company sells products vary depending on crude oil type and differ from Brent crude oil prices.

Crude oil price differences are determined by the quality of each crude oil type, etc., and are also affected by market conditions.