Japex Shares Rise Most in 6 Months on Gains in Crude

By Megumi Yamanaka and Yuji Okada

May 29 (Bloomberg) -- Japan Petroleum Exploration Co., the nation’s second-biggest oil driller, gained the most in almost six months in Tokyo trading as analysts expected stronger earnings than the company projected on higher oil prices.

The shares climbed as much as 480 yen, or 11 percent, to 4,950 yen on the Tokyo Stock Exchange and traded at 4,910 yen as at 1:24 p.m. local time. The stock is the second-biggest gainer by index points after Inpex Corp. in the Topix Mining Index. Inpex, Japan’s biggest oil explorer, advanced 7.2 percent to 777,000.

“Both Japex and Inpex made their full-year forecasts based on conservative crude oil estimates and people are buying their shares on expectations of higher earnings projections,” Hirofumi Kawachi, a senior analyst at Mizuho Investors Securities Co., said by phone. “The recent increases in oil prices have caused their shares to jump.”

Oil delivered to Japan in April cost an average $47.39 a barrel, according to the latest data by the Finance Ministry. Japex forecast net income may decline to 4.7 billion yen ($49 million) in the year ending March 2010, from 12.6 billion yen in the previous period, based on oil at $40 a barrel, the Tokyo- based company said in a statement to the stock exchange on May 14. Oil in New York traded at $64.83 as of 12:33 p.m. Tokyo time today.

Japex’s profit may reach 9.4 billion yen for the year ending March 2010, Reiji Ogino, a senior analyst at Mitsubishi UFJ Securities Co., said in a report yesterday.

To contact the reporter on this story: Megumi Yamanaka in Tokyo at myamanaka@bloomberg.net.