Japan Drilling Co., Ltd. (E23800) Stock Price

**Japan Marine Drilling - Business Overview**

Japan Marine Drilling is a specialized company whose core business is offshore well drilling and engineering services for oil and natural gas exploration and development. The company operates drilling vessels and rigs to conduct subsea oil field drilling operations, providing well drilling services and related services to oil development companies.

The company's primary customers are domestic and international oil and natural gas development companies, generating revenue by undertaking drilling work from the exploration through development phases. Since local subsidiaries tend to receive preferential treatment in overseas operations, the company has established local subsidiaries in Indonesia and Malaysia to participate in oil development projects in these countries.

The company's business is divided into three main segments. The largest segment, "Offshore Drilling Operations," is managed by multiple subsidiaries that own and operate rigs. "Operations and Management Services" involves contracted management of the scientific drilling vessel "Chikyu" from the Japan Agency for Marine-Earth Science and Technology. "Drilling Technology Services" leverages the company's marine drilling expertise to develop methane hydrate research and provide education and training services for oil drilling technology.

Japan Drilling Co., Ltd. is currently prioritizing the early recovery of its financial foundation through business restructuring under corporate rehabilitation procedures. The company is working to overcome its severe financial situation, marked by net debt of 15.5 billion yen, by utilizing legal restructuring processes while minimizing deterioration of business value and aiming to return to a sustainable growth trajectory. The company is pursuing a strategy to establish a stable management foundation through early approval of its rehabilitation plan, while continuing cost reduction and restraint on capital expenditures.

To strengthen competitive advantage in contract acquisition, the company is deploying a differentiation strategy rooted in Japanese business practices. Centered on "drilling contractor spirit" with Japanese personnel as core staff, the company leverages distinctive Japanese corporate strengths—including attentive customer service, precise planning, and meticulous work quality—to differentiate itself from major Western competitors. The company is strengthening collaboration between its headquarters and overseas operations and building trust relationships with oil and natural gas development companies to secure stable contract wins in a challenging market environment.

In new market development, the company is actively pursuing applications of its offshore drilling technology. It has positioned participation in methane hydrate commercialization projects as a priority area, continuing technical development support based on results from previous marine production tests. The company is also advancing consideration of entry into marine mineral resource development, including seafloor hydrothermal deposits and rare earth mud, aiming to expand its business scope through contributions to domestic energy resource development policy.

Regarding technological innovation and human resource development, the company emphasizes strengthening safe operations and responding to next-generation technologies. While implementing rigorous safety management through its HSQE management system, the company is treating the succession of knowledge and experience from skilled technicians to the next generation as an urgent priority. Additionally, the company is advancing research on retrofitting aging rigs into work platforms for offshore wind power facilities as a technological application in the renewable energy sector, focusing on new technology development to address the energy transition.