Inpex : Financial Results for the six months ended September 30, 2019 Support Material(PDF 250KB)

Financial Results for the six months ended September 30, 2019

Support Material

INPEX CORPORATION

November 6, 2019

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

Subsidiaries and Affiliates

64 consolidated subsidiaries

Major subsidiaries	Country/region	Ownership	Stage	Accounting term
Japan Oil Development Co., Ltd.	UAE	100%	Production	March (provisional
settlement of account)
JODCO Onshore Limited	UAE	51 %	Production	December
JODCO Lower Zakum Limited	UAE	100%	Production	December
INPEX Sahul, Ltd.	Timor‐Leste	100%	Production	December
INPEX Ichthys Pty Ltd	Australia	100%	Production	March (provisional
settlement of account)
INPEX Southwest Caspian Sea, Ltd.	Azerbaijan	51%	Production	March (provisional
settlement of account)
INPEX North Caspian Sea, Ltd.	Kazakhstan	51%	Production	March (provisional
settlement of account)
INPEX Oil & Gas Australia Pty Ltd	Australia	100%	Production	December

21 equity method affiliates

Major affiliates	Country/region	Ownership	Stage	Accounting term
MI Berau B.V.	Indonesia	44%	Production	December
Angola Block 14 B.V.	Angola	49.99%	Production	December
Ichthys LNG Pty Ltd	Australia	66.245%	Production	March (provisional
settlement of account)

2

Highlights of the Consolidated Financial Results for the six months ended September 30, 2019

		Apr. ‐ Sep. '18	Apr. ‐ Sep. '19	Change	%Change
Net sales	(Billions of yen)	438.2	575.2	137.0	31.3%
Crude oil sales		372.9	424.3	51.3	13.8%
Natural gas sales (including LPG)	57.9	143.2	85.2	147.0%
Others		7.2	7.7	0.4	6.5%
Operating income (Billions of yen)	226.4	280.7	54.2	24.0%
Ordinary income	(Billions of yen)	246.9	271.1	24.1	9.8%
Net income attributable to	34.0	69.4	35.4	104.2%
owners of parent (Billions of yen)
Net income per share (Yen)	23.31	47.59	24.28	104.2%
Average number of INPEX shares issued and outstanding during the six months ended September 30, 2019: 1,460,200,688
Average crude oil price (Brent) ($/bbl)	75.40	65.20	(10.20)	(13.5%)
Average exchange rate (¥/$)	110.26	108.60	1.66yen	1.5%
appreciation	appreciation

3

Crude Oil Sales

	Apr. ‐ Sep. '18	Apr. ‐ Sep. '19	Change	%Change
Net sales (Billions of yen)	372.9	424.3	51.3	13.8%
Sales volume (thousand bbl)	46,462	58,868	12,406	26.7%
Average unit price of overseas	73.16	65.95	(7.21)	(9.9%)
production ($/bbl)
Average unit price of domestic	54,443	45,986	(8,456)	(15.5%)
production (¥/kl)
Average exchange rate (¥/$)	109.66	109.29	0.37yen	0.3%
appreciation	appreciation
Sales volume by region	Apr. ‐ Sep. '18	Apr. ‐ Sep. '19	Change	%Change
(thousand bbl)
Japan	386	376	(10)	(2.6%)
(61.4 thousand kl)	(59.8 thousand kl)	(‐1.6 thousand kl)
Asia & Oceania	1,033	8,288	7,255	702.3%
Eurasia (Europe & NIS)	7,124	6,262	(862)	(12.1%)
Middle East & Africa	37,353	43,228	5,874	15.7%
Americas	566	714	149	26.3%
Total	46,462	58,868	12,406	26.7%

4

Natural Gas Sales (excluding LPG)

	Apr. ‐ Sep. '18	Apr. ‐ Sep. '19	Change	%Change
Net sales (Billions of yen)	57.5	141.7	84.1	146.2%
Sales volume (million cf)	69,026	222,170	153,144	221.9%
Average unit price of overseas	2.67	4.42	1.75	65.5%
production ($/thousand cf)
Average unit price of domestic sales	49.85	54.50	4.65	9.3%
(¥/m3)
Average exchange rate (¥/$)	106.84	108.62	1.78yen	1.7%
depreciation	depreciation
Sales volume by region (million cf)	Apr. ‐ Sep. '18	Apr. ‐ Sep. '19	Change	%Change
Japan	36,055	35,825	△ 230	(0.6%)
(966million ㎥*)	(960million ㎥*)	(‐6million ㎥*)
Asia & Oceania	10,147	169,150	159,003	‐
Eurasia (Europe & NIS)	4,869	4,132	(737)	(15.1%)
Middle East & Africa	‐	‐	‐	‐
Americas	17,955	13,063	(4,891)	(27.2%)
Total	69,026	222,170	153,144	221.9%

*1m3=41.8605MJ

5

Analysis of Net Sales Increase

(Billions of Yen)
700			Crude Oil		(46.7)
		143.3	Natural Gas (including LPG)	+39.9
600				0.0	0.4
500			(6.8)
		Crude Oil		(1.4)
			Natural Gas (including LPG)	+1.4
400
300		Crude Oil	+99.5
	Natural Gas (including LPG) +43.8				575.2
200	438.2
100
0	Net Sales	Increase in	Decrease in	Exchange rate	Others	Net Sales
	Apr. - Sep. '18	Sales Volume	Unit Price				Apr. ‐ Sep. '19
6

Statement of Income

(Billions of Yen)	Apr. ‐ Sep. '18	Apr. ‐ Sep. '19	Change	%Change
Net sales	438.2	575.2	137.0	31.3%
Cost of sales	176.0	245.7	69.6	39.6%
Gross profit	262.1	329.5	67.3	25.7%
Exploration expenses	1.0	11.6	10.6	‐
Selling, general and	34.7	37.2	2.4	7.1%
administrative expenses
Operating income	226.4	280.7	54.2	24.0%
Other income	33.6	12.0	(21.5)	(64.1%)
Other expenses	13.0	21.6	8.5	65.8%
Ordinary income	246.9	271.1	24.1	9.8%
Total income taxes	205.9	199.7	(6.2)	(3.0%)
Net income (loss) attributable	7.0	1.9	(5.0)	(72.7%)
to non‐controlling interests
Net income attributable to	34.0	69.4	35.4	104.2%
owners of parent

Increase in sales volume : +143.3

Decrease in unit price :	(6.8)
Exchange rate:	+0.0
Others :	+0.4
Cost of sales for
Crude Oil :	168.9
(Change)	+31.8
Cost of sales for
Natural Gas* :	71.4
(Change)	+37.3
* Including LPG
Main factors for change :
Compensation income	(7.4)
Equity in earnings of affiliates	(6.2)
Foreign exchange gain	(5.2)
Main factor for change :
Interest expense	+9.5

7

Other Income/Expenses

(Billions of Yen)	Apr. ‐ Sep. '18	Apr. ‐ Sep. '19	Change	%Change
Other income	33.6	12.0	(21.5)	(64.1%)
Interest income	4.1	1.7	(2.3)	(56.7%)
Dividend income	1.4	2.2	0.8	58.7%
Equity in earnings of affiliates	10.5	4.2	(6.2)	(59.6%)
Compensation income	7.4	‐	(7.4)	‐
Foreign exchange gain	5.2	‐	(5.2)	‐
Other	4.7	3.7	(0.9)	(20.9%)
Other expenses	13.0	21.6	8.5	65.8%
Interest expense	4.7	14.3	9.5	200.1%
Provision for allowance for recoverable	1.6	1.9	0.2	12.9%
accounts under production sharing
Foreign exchange loss	‐	0.6	0.6	‐
Other	6.5	4.7	(1.8)	(27.9%)

8

Analysis of Net Income Increase

(億(Billions円) of Yen)

200

180	143.3	0.0	4.0

160(6.8)

140

120

100

(69.6)

(10.8)

80

(2.4)

5.0

69.4

6.2

60

(29.9)

40

34.0

20

0

Net income

Increase

Decrease in

Exchange rate

Others

Increase in

Increase in

Increase

Other

Decrease in

Net income

Net income

attributable

attributable

in Sales

Unit price

Cost of

Exploration

in

income

income

(loss)

to owners

volume

attributable

to owners

of parent

sales

expenses and

SG&A

and expenses

tax payableto non‐controlling

of parent

Apr. -

Allowance for

interests

Apr. -

exploration*

Sep. '18

Net Sales

Sep. '19

9

*Provision for allowance for recoverable accounts under production sharing