Inpex : Financial Results for the Six Months ended June 30, 2020 Presentation Material (PDF 2.28MB)

August 07, 2020 at 02:09 am EDT

INPEX CORPORATION

Financial Results

for the six months ended June 30, 2020

August 7, 2020

Agenda

Corporate Overview
Consolidated Financial Results for the six months ended June 30, 2020
Consolidated Financial Forecasts for the year ending December 31, 2020

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.

Corporate Overview

Takayuki Ueda

Representative Director, President & CEO

FY 2020/12 Second Quarter Financial Results Highlights

	Net Sales	Net Income	Income before
	(Loss)	One-off Profit (Loss)*1

FY2020/12 Q2	¥391.6 billion	(¥120.7 billion)	¥36.4 billion
Financial Results
(30.5% decrease YoY*2)		(51.5% decrease YoY*2)
(Jan to June 2020)

*1 Income before one-off profit (loss): Net income (loss) attributable to owners of parent minus one-off profit (loss)

*2 Period of YoY comparison: January to June 2019

Net Production

(January to June 2020)

582,000 BOED

(9% increase YoY*2)

FY2020/12 Full Year	 Net Sales: ¥730.0 billion
Financial Forecasts	 Net Income (Loss): (¥136.0 billion)
 Income before one-off profit (loss)*1: ¥36.2 billion

Dividend per Share	 No change from the previous forecast
 Total annual dividend of ¥24 per share (forecast) including interim dividend
	of ¥12 and year-end dividend of ¥12 (forecast)
Response to	 Maintaining investment and cost reduction measures in progress
 Securing sufficient liquidity and free cash flow
Low Oil Prices	 Implementing COVID-19 countermeasures at INPEX operational sites to
	ensure steady production
Project Highlights	 Ichthys LNG: Steady production in progress
 Abadi LNG Project: Preparations to commence FEED in progress
	 Abu Dhabi: Development work ongoing to increase production capacity

Recognition of Impairment Losses, Revision of FY2020 Consolidated

Financial Forecasts, Dividend

 Recognition of Impairment Losses

 Impairment tests conducted on assets in light of such factors as the drop in oil prices due to factors such as the spread of COVID-19 resulted in the recognition of 192.4 billion yen in impairment losses (net income impact of approximately 162.7 billion yen after incorporating tax effect) in 2Q FY2020.

Region	Assets	Impairment Losses (billion yen)
Oceania	Prelude FLNG Project	130.8

Bayu Undan Project	8.9

United States	Shale Oil Project (Eagle Ford)	33.6

Lucius Oil Field	18.9

	Total Amount	192.4

 Revision of FY2020 Consolidated Financial Forecasts

 As a result of factors including the recognition of the impairment losses in 2Q FY2020, net income attributable to owners of parent is down 146 billion yen compared to the previous forecast to minus 136 billion yen.

	Previous Forecast	Revised Forecasts	Ref. Income before
(billion yen)	(May 12, 2020)	(Aug 6, 2020)	one-off profit (loss)*
Net income/loss attributable to owners of parent	10.0	(136.0)	36.2

* Income before one-off profit (loss): Net income (loss) attributable to owners of parent minus one-off profit (loss)

 Dividend

 There is no change from the previous forecast. An interim dividend of ¥12 and an year-end dividend of ¥12 (forecast) totalling an annual dividend of ¥24 (forecast) per share.

Shareholder Return Policy

During the term of the Medium-term Business Plan 2018-2022, maintain stable base dividends and enhance dividends in stages in accordance with the growth of the Company's financial results with a payout ratio of 30% or more.

Response to Low Oil Prices

Investment and Cost Reduction Measures

FY2020 development and exploration reduction targets and progress
- We have been pursuing our initial targets to reduce development investment by over 20% and exploration investment by over 40% groupwide compared to our initial forecasts. As a result, we have made sufficient progress so far to expect to reduce investment in overall development and exploration by over 30 percent and over 50 percent, respectively.
Will consider further reduction measures beyond 2021 in preparation for prolonged low oil prices
Will further pursue cost reduction in all other areas including OPEX and management costs

FY2020 Investment Cost Forecast				Capital Expenditure		Exploration Expenditure		Others

	(billion yen)	301

	Initial	May	Aug	Reduction from	300		3
	Initial Forecasts					30
	Forecasts	Target	Forecasts
(billion yen)								219
Difference	%						2	192
Capital Expenditure	268	201	177	(91)	(34%)	200			16	2

					13
Exploration Expenditure	30	16	13	(17)	(57%)

Others	3	2	2	(1)	(33%)					268
Total Expenditure	301	219	192	(109)	36%)	100			201		177

 Investment and cost reduction measures	0
Initial	May	Aug
	Ichthys (Australia): Revise investment plans and operations
	Forecast	Target	Forecast
	Abu Dhabi: Reduce drilling costs, suspend or postpone operations

 Eagle Ford (US): Postpone scheduled development work including production well drilling and completion, restrict operations to minimum lease requirements, change plans flexibly in view of oil prices

 Exploration: Consider suspension and/or postponement of exploration and appraisal drilling in Australia, Gulf of Mexico, Abu Dhabi (onshore), etc.

 New projects: Rigorously screen and evaluate new projects

Response to Low Oil Prices

Securing Sufficient Liquidity and Free Cash Flow

INPEX maintains abundant liquidity on hand and has sufficient commitment lines. INPEX will further strengthen its financial base with the following measures.

Continue to maintain abundant liquidity on hand. Available fund as of December 31, 2020 is expected to be approximately ¥200 billion.
Continue to maintain commitment lines with sufficient amounts and duration from core banks.
Expect to secure approximately ¥160 billion in free cash flow* for FY2020.

FY2020 Free Cash Flow Forecast*

(billion yen)

Approx.

350

Approx.

190

Approx.

160

* Including the Ichthys Downstream IJV

Response to the Low Oil Price

Implementing COVID-19 Countermeasures for Steady Production

Stable operations and energy supply are being steadfastly maintained through various initiatives at INPEX-operated sites including Ichthys LNG facilities in Australia and the Minami-Nagaoka Gas Field and Naoetsu LNG Terminal in Japan. These initiatives are all based on prioritizing the health and safety of employees and contractors.
- The INPEX-operated Ichthys LNG Project in Australia instituted measures to prevent infection at an early stage by adopting special shifts including isolation periods, monitoring and regulating access to work sites and imposing restrictions and requirements on LNG vessel operations. The project plans to continue implementing the appropriate measures as required.
- At worksites in Japan, access is restricted to operations personnel only. Measures are taken to secure backup personnel to mitigate workforce shortages in case of an infection. Strict access segregation and zoning measures dividing operations and non-operations personnel to reduce the risk of infection.
- At the Eagle Ford Shale Oil Project in the United States, all personnel are required to undergo medical screening and temperature checks prior to accessing worksites. The use of masks and hand sanitizers is required and disinfection work is carried out regularly, while an infection countermeasure plan has been developed.
- INPEX continues to strengthen COVID-19 prevention measures at other oil and gas production operations around the world to maintain a stable supply of energy.
In February 2020, INPEX has established a crisis management task force at its head office to respond to the COVID-19 pandemic and all employees have been strongly encouraged to work from home and to avoid business trips. All INPEX employees based in Japan followed a directive to work from home in principle during the state of emergency announced by the Japanese Government. After the state of emergency was lifted, approximately 70% of the total workforce were directed to work from home, as well as to utilize staggered commuting & flexible working arrangements in order to avoid crowds and to minimize the risk of infection.

Net Production

Net production for the first half increased reflecting the successful ramp-up of the Ichthys LNG Project.

(Thousand BOED)

600

500

400

300

200

100

534

43%

38%

(Reference figures)

Same period of

the previous year

(January - June 2019)

582

42%

10%

40%

FY2020/12 Q2

(January - June 2020)

Americas Middle East/Africa

Eurasia

Asia/Oceania

Japan

Net production for FY2020/12 Q2 (January to June 2020). The production volume under the production sharing contracts entered into by the INPEX Group corresponds to the net economic take of the INPEX Group.

Ichthys LNG Project

Production Status
- Stable operations have been maintained without shutdowns, etc., as a result of various countermeasures against the spread of COVID-19.
Number of LNG Cargoes
- 56 LNG cargoes shipped between January and June 2020
- Approximately 10 LNG cargoes per month expected for FY2020

Period	LNG	Onshore	Offshore	LPG
Condensate	Condensate

October 2018 to March 2019	31	4	10	6

April to December 2019	84	16	23	23

January to June 2020	56	9	16	16

Total since production start-up till June 2020	171	29	49	45

Project Loan Refinancing
- Concluded a refinancing of approximately 8.3 billion US dollars in June 2020
- Reduced the financial commitment of Ichthys LNG Pty Ltd
Operational Expenditure
- Competitive production cost in comparison to the company's other producing assets
Maintenance Plan
- No large-scale maintenance work is planned in FY2020

Exploration Blocks in Vicinity of Ichthys Field

INPEX holds participating interests in 18 exploration blocks in the vicinity of the Ichthys Field. To date, gas reservoirs have been discovered including Crown, Lasseter, Mimia and Burnside. These gas reservoirs extend across at least 9 blocks.
Land secured for possible additional LNG processing trains in Darwin.

Abadi LNG Project

Production Capacity
- Total output of natural gas (LNG equivalent): 10.5 million tons per year including
- - Approximately 9.5 million tons of LNG per year
  - Local gas supply via pipeline
- Up to approximately 35,000 barrels of condensate per day
Production Sharing Contract (PSC) Term
- From November 16, 1998 to November 15, 2055
- PSC amendment and extension agreements signed in October 2019, extending the PSC from 2028 to 2055
Milestones
- The project was listed as a national strategic project in June 2017 and as a priority infrastructure project in September 2017 by the Indonesian government.
- In July 2019, Indonesian authorities approved the revised plan of development based on an onshore LNG development scheme.
- In May 2020, INPEX signed an MoU with PT PLN and with PT Pupuk Indonesia, each concerning the long-term domestic gas supply from the Abadi LNG Project.

Sufficiently Strong Project Economics
- PSC term secured until 2055
- Excellent reservoir productivity enabling efficient development
- Confirmed sufficient reserves enabling production of 9.5 million tons of LNG per year and local gas supply via pipeline for more than 20 years
- Sufficient financial conditions secured through three economic incentives (exemption of indirect tax, application of investment credits and introduction of incremental profit sharing after tax.)
Schedule
- Continue preparations to commence FEED work at an early stage, although delay is expected due to the COVID-19 pandemic. FEED work is expected to take one to two years.
- Targeting production start-up in the latter half of the 2020s.
- Pursuing efficient development leveraging the expertise and experience acquired through the Ichthys LNG Project.

Abadi LNG Project Development Concept

Progress on other key overseas projects supporting our business

Abu Dhabi Onshore Concession	Abu Dhabi Offshore Oil Fields
(In Production in Abu Dhabi)	(Upper Zakum, Lower Zakum, Satah and Umm Al Dalkh)
	(In Production in Abu Dhabi)
 Target Production Capacity		 Target Production Capacity
 2 million bbl/d	ナダ	 Upper Zakum: 1 million bbl/d
		Lower Zakum: 0.45 million bbl/d

		 Satah: 25 thousand bbl/d
		 Umm Al Dalkh: 20 thousand bbl/d
 Areas of Progress	 Areas of Progress
 Development work is ongoing to increase production capacity to	 Development work is ongoing to increase the combined production
approximately 2 million bbl/d	capacity of the four fields to approximately 1.5 million bbl/d
	 As the asset leader of the Lower Zakum Oil Field, INPEX is currently
	playing a leading role in advancing development and working closely
	with ADNOC and its partners.
Kashagan Oil Field	ACG Oil Fields
(In Production in Kazakhstan)	(In Production in Azerbaijan)

 Areas of Progress	 Areas of Progress
 Production volume reached 370 thousand bbl/d	 Achieved 500 million-ton (3.7 billion barrels) cumulative production
 Work ongoing to increase production volume to 450 thousand	milestone in December 2019
bbl/d

Natural Gas Business in Japan and Renewable Energy Business and

Effective CO2 Utilization Technology Development

Natural Gas Business in Japan	Renewable Energy Business and
	Effective CO2 Utilization Technology Development

Naoetsu LNG Terminal		Methanation Testing Facility
 Natural Gas Sales Volume*		Sarulla Geothermal Independent Power Producer (IPP) Project
 FY2019/12 (9 months): approx. 1.51 billion m3		 Commercially operating since May 2018 in Indonesia
3		サルーラ地熱IPP事業
 FY2020/12 first half (6 months): approx. 1.07 billion m		サルーラ地熱IPP事業
 FY2020/12 forecast (12 months): approx. 2.06 billion m3	Geothermal Power Business in Japan
	 Environmental impact assessment ongoing

 Naoetsu LNG Terminal		 Flow tests commenced in 2020 in Akita Prefecture, Japan

 Started commercial operations at Naoetsu LNG Terminal		Methane Synthesis (Methanation)
in December 2013		 Completed construction & commissioning of a methane
 Toyama Line completed in June 2016		synthesis test facility (producing methane from CO2 and
 First LNG cargo (Pacific Breeze) from Ichthys LNG Project		hydrogen) at the INPEX-operated Koshijihara Plant in Niigata
called at Naoetsu LNG Terminal in October 2018		Prefecture, Japan
 First call by Oceanic Breeze carrying Ichthys cargo in		 Various test operations ongoing
February 2019		Offshore Wind Power Project

* 1m3 =41.8605MJ		 Consortium was formed for an offshore wind power project in
		Akita Prefecture.

Consolidated Financial Results

for the six months ended June 30, 2020

Daisuke Yamada

Director, Managing Executive Officer,

Finance & Accounting

Comparison with 2Q FY2019/12

INPEX's accounting period changed to the January to December period from the April to March period from the fiscal year ended December 31, 2019. FY2020 second quarter figures are compared with the reference figures of the January to June 2019 period.

(Reference figures) Same period of the previous year (January to June 2019）*1

			2019				2020
	Jan-Mar	Apr-Jun		Jul-Sep	Oct-Dec	Jan-Mar	Apr-Jun	Jul-Sep	Oct-Dec
INPEX and subsidiaries with	（Reference	figures）
provisional settlements of accounts*2				FY2020
Same	period
Subsidiaries				Second Quarter
of the previous year
with a December 31 fiscal year-end*3

*1 Adjusted actual figures are unaudited figures for reference purposes only

*2 INPEX, major domestic subsidiaries and overseas subsidiaries with provisional settlements of accounts. Subsidiaries with a December 31 fiscal year-end that provisionally settled their accounts on March 31 due to the relatively large impact of their performance on the Company's consolidated financial accounts.

*3 Subsidiaries adopting an accounting period from January to December.

Highlights of the Consolidated Financial Results for the six months ended June 30, 2020


			(Reference)	2Q FY2020
			Same Period Last Year	Change	% Change
			(January - June '20)
			(January - June '19)
Net sales	(Billions of yen)	563.1	391.6	(171.4)	(30.5%)

Crude oil sales			421.3	246.3	(175.0)	(41.5%)

Natural gas sales (including LPG)	132.3	138.2	5.8	4.5%

Others			9.4	7.1	(2.3)	(25.0%)

Operating income (Billions of yen)	269.1	123.7	(145.3)	(54.0%)

Ordinary income	(Billions of yen)	270.7	149.2	(121.4)	(44.9%)

Net income (loss) attributable to	82.4	(120.7)	(203.2)	-
owners of parent (Billions of yen)


Net income (loss) per share* (Yen)	56.48	(82.73)	(139.21)	-

* Average number of INPEX shares issued and outstanding during the six months ended June 30, 2020: 1,460,203,039

Average crude oil price (Brent) ($/bbl)		66.17	42.10	(24.07)	(36.4%)

Average exchange rate (¥/$)		110.06	108.25	1.81 yen	1.6%
	appreciation	appreciation

Crude Oil Sales

	(Reference)	2Q FY2020
	Same Period Last Year	Change	% Change
	(January - June '20)
	(January - June '19)


Net sales (Billions of yen)	421.3	246.3	(175.0)	(41.5%)


Sales volume (thousand bbl)	57,784	60,894	3,111	5.4%

Average unit price of overseas production	66.21	37.27	(28.94)	(43.7%)
($/bbl)


Average unit price of domestic production	46,270	31,382	(14,888)	(32.2%)
(¥/kl)


Average exchange rate (¥/$)	110.13	108.41	1.72yen	1.6%
appreciation	appreciation


Sales volume by region (thousand bbl)	(Reference)	2Q FY2020
	Same Period Last Year	Change	% Change
	(January - June '20)
	(January - June '19)


Japan	403	335	(68)	(17.0%)
(64.1 thousand kl)	(53.2 thousand kl)	(-10.9 thousand kl)

Asia & Oceania	7,719	7,209	(510)	(6.6%)

Eurasia (Europe & NIS)	6,417	8,486	2,070	32.3%

Middle East & Africa	42,531	42,925	394	0.9%

Americas	714	1,940	1,225	171.6%

Total	57,784	60,894	3,111	5.4%

Natural Gas Sales (excluding LPG)

	(Reference)	2Q FY2020
	Same Period Last Year	Change	% Change
	(January - June '20)
	(January - June '19)


Net sales (Billions of yen)	130.9	136.7	5.8	4.4%


Sales volume (million cf)	185,197	222,856	37,659	20.3%

Average unit price of overseas production	4.21	4.17	(0.04)	(1.0%)
($/thousand cf)

Average unit price of domestic sales (¥/m3)	57.46	50.65	(6.81)	(11.9%)

Average exchange rate (¥/$)	110.10	108.45	1.65yen	1.5%
appreciation	appreciation


Sales volume by region (million cf)	(Reference)	2Q FY2020
	Same Period Last Year	Change	% Change
	(January - June '20)
	(January - June '19)


Japan	41,866	39,826	(2,040)	(4.9%)
(1,122 million m3 *)	(1,067 million m3 *)	(-55 million m3 *)
Asia & Oceania	126,285	168,905	42,620	33.7%
Eurasia (Europe & NIS)	3,983	4,853	870	21.8%
Middle East & Africa	-	-	-	-
Americas	13,063	9,272	(3,791)	(29.0%)
Total	185,197	222,856	37,659	20.3%

* 1m3=41.8605MJ

Analysis of Net Sales Decrease

(Billions of Yen)
700			Crude Oil		(193.8)
		38.0	Natural Gas (including LPG)	(8.1)
600

500						Crude Oil	(3.8)
					Natural Gas (including LPG)	(1.2)
400			(201.9)	(5.1)	(2.3)


300	563.1	CrudeOil		+22.6
Natural Gas (including LPG)	+15.3

200						391.6
100
0

(Reference)	Increase in	Decrease in	Exchange rate	Others	2Q FY2020
Same Period Last Year	Sales Volume	Unit Price	(Appreciation of Yen)		(January - June '20)
(January - June '19)

Statement of Income

	(Reference)	2Q FY2020	Change	% Change
	Same Period Last Year	(January - June '20)
(Billions of Yen)	(January - June '19)

Net sales	563.1	391.6	(171.4)	(30.5%)

Cost of sales	246.8	226.0	(20.8)	(8.4%)

Gross profit	316.3	165.6	(150.6)	(47.6%)

Exploration expenses	10.2	4.6	(5.5)	(54.1%)

Selling, general and	36.9	37.1	0.2	0.6%
administrative expenses


Operating income	269.1	123.7	(145.3)	(54.0%)

Other income	23.2	45.3	22.1	95.2%

Other expenses	21.6	19.9	(1.7)	(8.1%)

Ordinary income	270.7	149.2	(121.4)	(44.9%)

Extraordinary loss (Impairment loss)	5.4	192.4	186.9	-

Total income taxes	189.3	78.2	(111.0)	(58.7%)

Net income (loss) attributable to non-	(6.5)	(0.6)	5.9	-
controlling interests


Net income (loss) attributable to	82.4	(120.7)	(203.2)	-
owners of parent

Increase in sales volume :	+38.0
Decrease in unit price :	(201.9)
Exchange rate:	(5.1)
Others :	(2.3)

Cost of sales for Crude Oil: 138.3

(Change)(31.7)

Cost of sales for Natural Gas*: 81.9

(Change)+12.6

* Including LPG

Main factors for change :

Equity in earnings of affiliates +21.1

Foreign exchange gain	+3.7
Main factors for change :
Foreign exchange loss	(5.6)
Main factors for change :
Prelude FLNG Project	+130.8
Eagle Ford	+33.6
Lucius Oil Field	+18.9
Bayu-Undan	+8.9

Analysis of Income before One-off Profit (Loss) Decrease

(Billions of Yen)

* Income before one-off profit (loss)

= Net income (loss) attributable to owners of parent − one-off profit (loss)

Analysis of Impact of One-off Profit (Loss)

(Billions of Yen)
(億円)
50
		Prelude FLNG Project
36.4	(130.8)
			Eagle Ford	(33.6)

			Lucius Oil Field	(18.9)
			Bayu-UndanGas-Condensate Field (8.9)
0

(50)	(120.7)

(100)			14.0
29.7

	(2.7)	(5.9)



(150)
(192.4)

(200)

Income before	Impairment loss	Tax effect on	Refinance	Loss on	Others	Net income (loss)
one-off		Impairment loss	(Ichthys LNG Project)	valuation of		attributable to
profit (loss)				investment securities		owners of parent
2Q FY2020						2Q FY2020
(January - June '20)						(January - June '20)

Balance Sheet

(Billions of yen)	December 2019	June 2020	Change	% Change

Current assets	419.8	512.2	92.4	22.0%

Tangible fixed assets	2,275.3	2,115.4	(159.8)	(7.0%)

Intangible assets	535.3	454.0	(81.2)	(15.2%)

Recoverable accounts under production sharing	568.3	573.4	5.0	0.9%

Other	1,118.0	1,084.9	(33.0)	(3.0%)

Less allowance for recoverable	(66.8)	(69.1)	(2.2)	3.3%
accounts under production sharing


Total assets	4,849.9	4,671.0	(178.9)	(3.7%)
Current liabilities	401.4	372.9	(28.5)	(7.1%)

Long-term liabilities	1,151.3	1,243.9	92.6	8.0%

Total net assets	3,297.1	3,054.1	(243.0)	(7.4%)

(Non-controlling interests)	256.4	252.2	(4.1)	(1.6%)

Total liabilities and net assets	4,849.9	4,671.0	(178.9)	(3.7%)
Net assets per share (Yen)	2,082.43	1,918.88	(163.55)	(7.9%)

Summary of financial information for Ichthys downstream JV (100% basis, including the Company's equity share 66.245%)

(Billions of yen)

Current assets : 81.0
Fixed assets : 3,630.2
Total assets: 3,711.2

*Fixed assets include interest expense which are not included in CAPEX, and capitalized costs before FID.

The total of long-term loans and short term loans is 1.2 trillion yen.

Adding the off-balanced net loans of the Ichthys IJV brings the total of INPEX net loans to be 2.2 trillion yen (as of June, 2020).

(Billions of yen)

Total shareholders' equity: (147.0) Accumulated other comprehensive income : (91.7)

Unrealized gain (loss) from hedging instruments: (47.9)
Translation adjustments: (36.3)

Statement of Cash Flows

	2Q FY2020	(Reference)
(Billions of Yen)	(January - June '20)	April - September '19

Income before income taxes	(43.1)	271.1

Depreciation and amortization	88.8	83.0

Impairment loss	192.4	-

Recovery of recoverable accounts under production sharing (capital expenditures)	14.8	19.3

Recoverable accounts under production sharing (operating expenditures)	(1.2)	(4.2)

Income taxes paid	(121.4)	(187.0)

Other	43.2	(27.6)

Net cash provided by (used in) operating activities	173.5	154.5

Payments for time deposits / Proceeds from time deposits	(54.1)	0.0

Payments for purchases of tangible fixed assets	(68.2)	(66.2)

Payments for purchases of marketable securities/investment securities and proceeds	0.8	(1.0)
from sales of marketable securities/investment securities

Investment in recoverable accounts under production sharing (capital expenditures)	(18.9)	(21.8)

Long-term loans made / Collection of long-term loans receivable	(25.4)	(75.1)

Payments for acquisitions of participating interests	-	(30.0)

Other	(1.9)	(0.1)

Net cash provided by (used in) investing activities	(167.7)	(194.4)

Net cash provided by (used in) financing activities	124.0	24.9

Cash and cash equivalents at end of the period	303.1	219.1

Consolidated Financial Forecasts

for the year ending December 31, 2020

Daisuke Yamada

Director, Managing Executive Officer,

Finance & Accounting

Differences between Consolidated Financial Forecasts and Actual Results for the six months ended June 30, 2020

Assumptions

(May 12, 2020)	1st half
(Previous Forecasts)


Crude oil price (Brent) (US$/bbl)	40.4

Exchange rate (yen/US$)	109.5

(August 6, 2020)	1st half
(Actual Results)


Crude oil price (Brent) (US$/bbl)	42.1

Exchange rate (yen/US$)	108.3

Differences between Consolidated Financial Forecasts and Actual Results for the six months ended June 30, 2020

	Previous Forecasts	Actual Results	Change	% Change
	(May 12, 2020)


Net Sales (billions of yen)	408.0	391.6	(16.3)	(4.0%)

Operating income (billions of yen)	133.0	123.7	(9.2)	(6.9%)

Ordinary income (billions of yen)	145.0	149.2	4.2	2.9%

Net income (loss) attributable to owners of	35.0	(120.7)	(155.7)	-
parent (billions of yen)

Revisions of Financial Forecasts

for the year ending December 31, 2020

 Assumptions

		(May 12, 2020)	1st half (Jan-Jun)	2nd half (Jul-Dec)		Full year
		Crude oil price (Brent) (US$/bbl)	40.4		30.0		35.2

		Exchange rate (yen/US$)	109.5		110.0		109.7


		(August 6, 2020)	1st half (Jan-Jun)	2nd half (Jul-Dec)		Full year
		Crude oil price (Brent) (US$/bbl)	42.1		40.0		41.1

		Exchange rate (yen/US$)	108.3		105.0		106.6

 Financial Forecasts for the year ending December 31, 2020

						Previous forecasts	Revised forecasts	Change	% Change
						(May 12, 2020)	(August 6, 2020)


	Net sales (billions of yen)				710.0	730.0	20.0	2.8%

	Operating income (billions of yen)				172.0	203.0	31.0	18.0%

	Ordinary income (billions of yen)				163.0	200.0	37.0	22.7%

	Net income (loss) attributable to owners of				10.0	(136.0)	(146.0)	-
	parent (billions of yen)


 Dividend per share

			End of 2Q			End of fiscal year	Full year
					(forecast)	(forecast)


	¥12.00			¥12.00		¥24.00

Analysis of Income before One-off Profit (Loss) Increase

(Billions of Yen)

Crude Oil Price (Brent) Assumptions (US$/bbl)

	1st half	2nd half	Full year
May 12 Forecast	40.4	30	35.2
Aug 6 Forecast	42.1	40	41.1

17.7


7.7		Reversal of Loss on Valuation
		of investment securities at 1st
		Quarter

10.0

* Income before one-off profit (loss)

= Net income (loss) attributable to owners of parent − one-off profit (loss)

Exchange Rate Assumptions (Yen/US$)

	1st half	2nd half	Full year
May 12 Forecast	109.5	110	109.7
Aug 6 Forecast	108.3	105	106.6

Analysis of Impact of One-off Profit (Loss)

(Billions of Yen)

* Income before one-off profit (loss)

= Net income (loss) attributable to owners of parent − one-off profit (loss)

Prelude (130.8)

Eagle Ford (33.6)

Lucius (18.9)

Bayu-Undan (8.9)

1st half	14.0
2nd half	(8.0)

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Inpex Corporation published this content on 07 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 August 2020 06:08:17 UTC

Market Closed - Japan Exchange Other stock markets 02:00:00 2024-04-19 am EDT			5-day change	1st Jan Change
2,409 ^JPY	+1.52%		-7.15%	+26.49%

Apr. 17	Kazakhstan claims against Kashagan oil firms top $150 bln, Bloomberg reports	RE
Apr. 11	Kyoto Fusioneering Ltd. announced that it has received ¥12.06 billion in funding from a group of investors	CI

Kazakhstan claims against Kashagan oil firms top $150 bln, Bloomberg reports	Apr. 17	RE
Kyoto Fusioneering Ltd. announced that it has received ¥12.06 billion in funding from a group of investors	Apr. 10	CI
Japan's Nikkei set for worst week since Dec 2022 as tech tumbles	Apr. 04	RE
Inpex's Attributable Profit Dives 36% in Year Ended December 2023	Mar. 27	MT
Inpex Corporation Provides Dividend Guidance on Common Stock and Class A Dividend for the Second Quarter and Year End of Fiscal Year Ending December 31, 2024	Mar. 27	CI
Transcript : Inpex Corporation - Special Call	Mar. 26
Japan's Nikkei slides before BOJ decision as chip shares weigh	Mar. 18	RE
Japan boosts reliance on allies Australia, US for long-term LNG supplies	Mar. 10	RE
Energy firms boost gas exploration in Southeast Asia to meet growing demand	Mar. 01	RE
EU Green-lights Japanese Liquefied Hydrogen Supply Chain JV	Feb. 23	MT
Japanese companies maintain suspended operations in Russia, survey shows	Feb. 21	RE
Tsubame BHB Co., Ltd. announced that it has received ¥5.3 billion in funding from a group of investors	Feb. 20	CI
Inpex's Attributable Profit Down 19.4% in 2023	Feb. 13	MT
Japan's Inpex books 19% drop in 2023 profit on lower energy prices	Feb. 13	RE
Inpex Corporation Reports Earnings Results for the Full Year Ended December 31, 2023	Feb. 12	CI
Inpex Corporation to Seek Acquisitions	Feb. 12	CI
Transcript : Inpex Corporation, 2023 Earnings Call, Feb 13, 2024	Feb. 12
Inpex Corporation Provides Consolidated Earnings Guidance for the Six Months Ending June 30, 2024 and Year Ending December 31, 2024	Feb. 12	CI
Inpex Corporation Announces Year-End Cash Dividend for the Fiscal Year Ended December 31, 2023, Payable on March 27, 2024; Provides Cash Dividend Guidance for the Second Quarter End and Year End of Fiscal Year Ending December 31, 2024; Announces Year-End Cash Dividend on A Share Fiscal Year Ended December 31, 2023, Payable on March 27, 2024; Provides Cash Dividend Guidance on A Share for the Second Quarter End and Year End of Fiscal Year Ending December 31, 2024	Feb. 12	CI
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Japan's Inpex selling stake in Russian oil project to Itochu, sources say	Jan. 30	RE
JAPAN'S INPEX TO SELL ITS STAKE IN INK-ZAPAD OIL PROJE…	Jan. 30	RE
Japan's Nikkei bounces back on stronger energy stocks, soft yen	Jan. 29	RE
Japan's Nikkei rebounds on stronger energy stocks, soft yen	Jan. 28	RE

	1st Jan change	Capi.
INPEX CORPORATION	+26.49%	19.62B
CHEVRON CORPORATION	+7.27%	296B
CONOCOPHILLIPS	+11.47%	152B
CNOOC LIMITED	+43.23%	118B
CANADIAN NATURAL RESOURCES LIMITED	+21.31%	82.18B
EOG RESOURCES, INC.	+10.10%	76.6B
PIONEER NATURAL RESOURCES COMPANY	+20.20%	63.15B
OCCIDENTAL PETROLEUM CORPORATION	+11.59%	59.07B
HESS CORPORATION	+7.07%	47.4B
WOODSIDE ENERGY GROUP LTD	-5.34%	35.86B

Inpex Corporation

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