Support Material
Financial Results for the three months ended March 31, 2024
INPEX CORPORATION (Securities Code:1605)
May 14, 2024
Cautionary Statement
This presentation includes forward-looking information that reflects the plans and expectations of the Company. Such forward-looking information is based on the current assumptions and judgments of the Company in light of the information currently available to it, and involves known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause the Company's performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by such forward-looking information. Such risks, uncertainties and other factors include, without limitation:
- Price volatility and change in demand in crude oil and natural gas
- Foreign exchange rate volatility
- Change in costs and other expenses pertaining to exploration, development and production
The Company undertakes no obligation to publicly update or revise the disclosure of information in this presentation (including forward- looking information) after the date of this presentation.
1
Highlights of the Consolidated Financial Results for the three months ended March 31,2024
1Q FY2023 | 1Q FY2024 | Change | % Change | |
Average crude oil price (Brent) ($/bbl) | 82.10 | 81.76 | (0.34) | (0.4%) |
Average exchange rate (¥/$) | 132.40 | 148.62 | 16.22 yen | 12.3% |
depreciation | depreciation | |||
Revenue (Billions of yen) | 578.0 | 596.8 | 18.7 | 3.3% |
Operating profit (Billions of yen) | 374.7 | 380.1 | 5.3 | 1.4% |
Profit before tax (Billions of yen) | 377.2 | 372.9 | (4.3) | (1.1%) |
Profit attributable to owners of parent (Billions of yen) | 146.7 | 121.8 | (24.9) | (17.0%) |
Basic earnings per share* (Yen) | 112.40 | 96.82 | (15.58) | (13.9%) |
- Average number of INPEX shares issued and outstanding during the three months ended March 31, 2023: 1,305,995,701 shares
Average number of INPEX shares issued and outstanding during the three months ended March 31, 2024: 1,258,249,977 shares
2
Revenue by Major Product
Revenue, Sales volume, Unit price and Exchange rate
1Q FY2023 | 1Q FY2024 | Change | % Change | ||
Revenue | 399.2 | 450.1 | 50.8 | 12.7% | |
(Billions of yen) | |||||
Sales volume | 36,677 | 37,338 | 661 | 1.8% | |
(thousand bbl) | |||||
Crude Oil | |||||
Average unit price of | 82.20 | 81.12 | (1.08) | (1.3%) | |
overseas sales ($/bbl) | |||||
Average exchange rate | 132.43 | 148.60 | 16.17 yen | 12.2% | |
(¥/$) | depreciation | depreciation | |||
Revenue | 168.9 | 138.8 | (30.1) | (17.8%) | |
(Billions of yen) | |||||
Sales volume | 128,241 | 130,976 | 2,735 | 2.1% | |
(million cf) | |||||
Natural Gas | Average unit price of | ||||
(excluding | |||||
overseas sales | 6.73 | 5.36 | (1.37) | (20.4%) | |
LPG) | |||||
($/thousand cf) | |||||
Average unit price of | 110.67 | 77.07 | (33.60) | (30.4%) | |
domestic sales (¥/m3) | |||||
Average exchange rate | 132.89 | 148.70 | 15.81 yen | 11.9% | |
(¥/$) | depreciation | depreciation | |||
* 1m3=41.8605MJ
Analysis of Revenue
(Billions of yen)
Crude Oil
+50.8
399.2 | 450.1 | |||
1Q FY2023 | Increase in | Decrease in | Exchange | 1Q FY2024 |
sales | unit price | rate | ||
volume |
Natural Gas(excluding LPG)
(30.1)
168.9
138.8
1Q FY2023 | Increase in | Decrease in | Exchange | 1Q FY2024 |
sales | unit price | rate | ||
volume |
3
Analysis of Profit (1Q FY2023 vs. 1Q FY2024)
(Billions of yen)
146.7
(24.9)
Business activities factors*2 (29.2)
Increase in research and development expenses, etc.
Increase in depreciation and royalty expenses related to Crude Oil, etc.
Increase in tax expense due to higher crude oil sales and income, etc.
・Increase in sales volume: +12.1 (Crude oil: +7.2, Natural gas: +4.9)
・Decrease in unit price: (52.2)
(Crude oil: (5.1), Natural gas: (44.3), LPG: (2.6))
・Exchange rate: +58.4
(Crude oil: +48.8, Natural gas: +9.3, LPG: +0.2)
One-off factors*3 +4.3
Gain on sale of | 121.8 |
certain renewable | |
energy PJ assets in | |
Southeast Asia | |
1Q FY2023 | Increase in | Increase in | Increase in | Increase in | Equity in | Other income | Income tax | Divestment | 1Q FY2024 | |
Exploration | ||||||||||
Profit | Revenue | Cost of sales | SG&A | earnings | (expenses) | expense | Profit | |||
expenses | ||||||||||
attributable to | of affiliates | attributable to | ||||||||
owners of parent*1 | owners of parent*1 | |||||||||
*1 | For the convenience of analyzing factors that cause changes in profit attributable to owners of parent, the items in the Consolidated Statements of Profit or Loss are rearranged and aggregated. | |||||||||
*2 | With regard to business activities factors, impacts to Income tax expense are listed separately, and impacts to Profit attributable to non-controlling interests are included in Other income (expenses). | 4 | ||||||||
*3 | With regard to one-off factors, impact to tax expense and profit attributable to non-controlling interests are included in each item. |
Consolidated Financial Forecasts for the year ending December 31, 2024
Full Year | Previous Forecasts | Revised Forecasts | Change | % Change | |||||||||
(February 13,2024) | (May 14,2024) | ||||||||||||
Average crude oil price (Brent) ($/bbl) | 73.0 | 80.0 | 7.0 | 9.6% | |||||||||
Average exchange rate (¥/$) | 138.0 | 145.0 | 7 yen | 5.1% | |||||||||
depreciation | depreciation | ||||||||||||
Revenue (Billions of Yen) | 1,931 | 2,178 | 247 | 12.8% | |||||||||
Operating profit (Billions of Yen) | 1,010 | 1,210 | 200 | 19.8% | |||||||||
Profit before tax (Billions of Yen) | 1,043 | 1,241 | 198 | 19.0% | |||||||||
Profit attributable to owners of parent (Billions of Yen) | 330 | 360 | 30 | 9.1% | |||||||||
ROIC(%) | 6.8 | 7.5 | 0.7 | - | |||||||||
ROE(%) | 7.7 | 8.4 | 0.7 | - | |||||||||
Net debt/equity ratio | 0.30 | 0.30 | - | - | |||||||||
*Includes Ichthys downstream IJV and differs from institutional accounting basis | |||||||||||||
1st Half | Previous | Revised | Change | % Change | 2 | nd | Half | Previous | Revised | Change | % Change | ||
Forecasts | Forecasts | Forecasts | Forecasts | ||||||||||
(Reference information) | |||||||||||||
(February 13,2024) | (May 14,2024) | (February 13,2024) | (May 14,2024) | ||||||||||
Average crude oil price | 75.5 | 82.5 | 7.0 | 9.3% | Average crude oil price | 70.5 | 77.5 | 7.0 | 9.9% | ||||
(Brent) ($/bbl) | (Brent) ($/bbl) | ||||||||||||
Average exchange rate (¥/$) | 138.0 | 148.0 | 10 yen | 7.2% | Average exchange rate (¥/$) | 138.0 | 142.0 | 4 yen | 2.9% | ||||
depreciation | depreciation | depreciation | depreciation | ||||||||||
Revenue (Billions of Yen) | 1,043 | 1,150 | 107 | 10.3% | Revenue (Billions of Yen) | 888 | 1,028 | 140 | 15.8% | ||||
Operating profit | 544 | 666 | 122 | 22.4% | Operating profit | 466 | 544 | 78 | 16.7% | ||||
(Billions of Yen) | (Billions of Yen) | ||||||||||||
Profit before tax | 559 | 678 | 119 | 21.3% | Profit before tax | 484 | 563 | 79 | 16.3% | ||||
(Billions of Yen) | (Billions of Yen) | ||||||||||||
Profit attributable to owners | 155 | 205 | 50 | 32.3% | Profit attributable to owners | 175 | 155 | (20) | (11.4%) | ||||
of parent (Billions of Yen) | of parent (Billions of Yen) | 5 | |||||||||||
Analysis of Profit (Previous vs. Revised)
(Billions of yen) | Market factors | Business Activities factors |
+58.3 | (14.3) |
Other factors
(14.0)
+41.5
(US$/bbl)
+16.8
(yen/US$)
・Previous 138.0 ・Revised 145.0
+0.3
(11.0) (2.3) (1.0)
Increase in exploration activities surrounding Ichthys field
(13.0) (1.3)
・Previous 73.0 ・Revised 80.0
Increase in tax cost (PRRT) of Ichthys
Updating tax costs with optimizing subsidiary organizational structure
360.0
330.0
Profit | Impact from | Impact from | Production | Increase in | Increase in | Divestments | Taxes | Others | Profit |
attributable to | Exploration | SG&A | attributable to | ||||||
Crude oil | Exchange | activities | |||||||
owners of parent | costs | owners of parent | |||||||
price | rate | ||||||||
(Previous) | (Revised) | ||||||||
6
FY2024 Financial Forecasts Cash Flow*
(Billions of Yen)
Cash Flow from Operations before exploration investment
Cash Flow from Investment (inclusive of exploration investment)
Growth Investment
Development expenditure (Oil & Gas Business)
Development expenditure (5 Net Zero Business)
Exploration expenditure
(inclusive of some 5 Net Zero Business)
Others
(inclusive of sale of interests, etc)
Others
(purchase and disposal of investment securities etc.)
Free Cash Flow
Financial Cash Flow
Shareholder Returns
Cash and cash equivalents at end of the year
Previous | Revised | ||
Forecasts | Forecasts | Change | |
(February 13,2024) | (May 14,2024) | ||
(Billions of yen) | |||
714.0 | 844.0 | 130.0 | |
(311.0) | (422.0) | (111.0) | |
(553.0) | (658.0) | (105.0) | |
(485.0) | (577.0) | (92.0) | |
(10.0) | (15.0) | (5.0) | |
(71.0) | (78.0) | (7.0) | |
13.0 | 12.0 | (1.0) | |
242.0 | 236.0 | (6.0) | |
403.0 | 422.0 | 19.0 | |
(410.0) | (429.0) | (19.0) | |
(132.0) | (144.0) | (12.0) | |
200.0 | 200.0 | 0.0 | |
7
* Including cash flow of Ichthys LNG Pty Ltd, Ichthys downstream Incorporated Joint Venture, a Jointly controlled entity.
FY2024 Financial Forecasts
ROIC by Segment
Previous Forecasts | Revised Forecasts | Change | ||
(%) | (February 13,2024) | (May 14,2024) | ||
O&G Japan | 8.5 | 7.0 | (1.5) |
O&G Overseas Ichthys
6.7 | 7.5 | 0.8 |
O&G Overseas Others
10.7 | 11.8 | 1.1 |
Others
(7.7) | (10.1) | (2.4) |
Renewable Energy | (0.4) | (1.8) | (1.4) |
Hydrogen and CCUS | - | - | - |
Consolidated financial statements
6.8 | 7.5 | 0.7 |
8
FY2024 Shareholder Returns
FY2023 actual | Previous forecast | Revised forecast | |
(February 13, 2024) | (May 14, 2024) | ||
DPS (Dividend per Share) | 74 yen | 76 yen | 76 yen |
Dividends | 94.9 billion yen | Approx. 95.0 billion yen | Approx. 94.0 billion yen*2 |
Share Buybacks | 100.0 billion yen | - | 50.0 billion yen |
Total Amount of Shareholder Returns | 194.9 billion yen | Approx. 95.0 billion yen | Approx. 144.0 billion yen |
60.6%*1 | Approx. 29% | ||
Total Payout Ratio (%) | Approx. 40% | ||
(aiming for above 40%) | |||
*1 Based on IFRS. (52.5% based on JGGAP)
*2 Forecast reflects acquisition of treasury stock.
Background of Acquisition of Treasury Stock and Shareholder Returns Policy
- Revised full year forecast at the end of 1Q FY2024 considering stable production operations of key projects including Ichthys LNG as well as strong crude oil prices and a favorable exchange rate.
- Resolved a share buyback of up to 50 billion yen to conduct flexible shareholder returns based on the recognition of the discounted nature of recent share price levels and our "Sustainable Growth of Corporate Value" initiative announced last year.
- Will continue to consider additional shareholder returns at the time of the announcement of 2Q FY2024 earnings results and onwards, based on
the progress of its year-end forecasts, changes in external environment and other factors. | 9 |
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Inpex Corporation published this content on 14 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 May 2024 05:03:03 UTC.