Japan Petroleum Exploration warns Iran conflict could hurt profits, shares plunge

The company stated that the Middle East conflict has triggered rising costs and work suspensions, which may put pressure on corporate profits. In an announcement released last Friday, the company said that the current round of Iran-related conflict will have a limited impact on its earnings for the fiscal year ending March 2026; however, due to the temporary purchase of additional spot liquefied natural gas and a high probability of operational cost increases in the Gulf region, these related risks will be reflected in its performance forecast for the next fiscal year. According to a research report by Mitsui Sumitomo Nikko Securities analyst Koji Kamichika, the ongoing conflict will cause liquefied natural gas procurement costs for Japan Petroleum Exploration per ship to increase by several billion yen. The company also highlighted risks: the supply and demand for chemicals required for domestic Japanese oil and gas field operations remain tight, and there is upward pressure on the company’s operating costs.