Inpex : Consolidated Financial Results for the Nine Months ended September 30, 2024

Consolidated Financial Results for the Nine Months ended September 30, 2024 [IFRS]

		November 12, 2024
Note: The following report is an English translation of the Japanese-language original.
Company name	: INPEX CORPORATION	Stock Exchange on which the Company is listed : Tokyo Stock Exchange
Code number	: 1605	URL https://www.inpex.co.jp
Representative	: Takayuki Ueda, President
Contact person	: Yoshihiro Wakita, General Manager, Corporate Communications Unit
	TEL[phone]
Scheduled date of payment of cash dividends	: －
Preparation of supplementary explanatory materials	: Yes
Meeting of quarterly financial results presentation	: None
		(Amounts less than one million yen are rounded down)

1. Consolidated Financial Results for the Nine Months ended September 30, 2024 (January 1, 2024 through September 30, 2024)

1. Consolidated operating results

(Figures in % represent the changes from the corresponding period of the previous fiscal year)

	Revenue		Operating profit	Profit before tax	Profit
For the nine months ended	Millions of yen		%	Millions of yen		%	Millions of yen		%	Millions of yen		%
September 30, 2024	1,747,557		9.1	1,018,079		24.9	1,048,412		13.5	303,596		13.6
September 30, 2023	1,602,224		－	814,945		－	923,502		－	267,165		－
	Profit attributable to	Total comprehensive	Basic earnings	Diluted earnings
	owners of parent		income		per share		per share
For the nine months ended	Millions of yen		%	Millions of yen		%			Yen			Yen
September 30, 2024	289,422		8.7	301,783		(62.3)			231.91			231.75
September 30, 2023	266,212		－	799,906		－			204.27			204.13
(2) Consolidated financial position
							Equity attributable to	Ratio of equity
	Total assets		Total equity	attributable to owners of
		owners of parent
							parent to total assets
	Millions of yen	Millions of yen	Millions of yen			%
As of September 30, 2024	6,994,257	4,603,421	4,309,846			61.6
As of December 31, 2023	6,739,476	4,499,033	4,209,101			62.5

2. Dividends

		Cash dividends per share
	At 1st quarter end	At 2nd quarter end	At 3rd quarter end	At fiscal year end	Total
	Yen	Yen	Yen	Yen	Yen
For the year ended	－	37.00	－	37.00	74.00
December 31, 2023
For the year ending	－	43.00	－
December 31, 2024
For the year ending
December 31, 2024				43.00	86.00
(Forecasts)

(Notes): 1. Changes in projected dividends for the year ending December 31, 2024 from the previous forecast: None

2. "Dividends" as stated above refer to common stock. For information regarding Class A stock (not listed), please refer to Exhibit "Dividends of Class A stock."

3. Forecasts for Consolidated Financial Results for the Year ending December 31, 2024 (January 1, 2024 through December 31, 2024)

(Figures in % represent the changes from the corresponding period of the previous fiscal year)

Revenue

Operating profit

Profit before tax

Profit attributable to

Basic earnings

owners of parent

per share

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Yen

For the year ending

2,243,000

3.6

1,224,000

9.9

1,269,000

1.2

380,000

18.1

306.85

December 31, 2024

(Note): Changes in forecasts for consolidated financial results for the year ending December 31, 2024 from the previous forecast: Yes

*Notes

(1)

Significant changes in scope of consolidation

: None

(2)

Changes in accounting policies, changes in accounting estimates, and restatement

1.

Changes in accounting policies required by IFRS

: None

2.

Other changes in accounting policies

: None

3.

Changes in accounting estimates

: None

(3)

Number of shares issued (Common stock)

1.

Number of shares issued at the end of the period

1,259,136,067 shares as of September 30, 2024

(including treasury stock):

1,386,667,167 shares as of December 31, 2023

2.

Number of treasury stock at the end of the period:

39,671,828 shares as of September 30, 2024

128,422,706 shares as of December 31, 2023

3.

Average number of shares:

1,247,995,136 shares for the nine months ended September 30, 2024

1,303,261,977 shares for the nine months ended September 30, 2023

(Note): The shares held by "the Board Incentive Plan Trust" are included in number of treasury stock at the end of the period. (As of September 30, 2024: 827,850 shares As of December 31, 2023: 891,560 shares)

*Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: None

*Explanation regarding the appropriate use of estimated consolidated financial results

The aforementioned forecasts "3. Forecasts for Consolidated Financial Results for the year ending December 31, 2024" are based on the currently available information and contain many uncertainties. The final results might be significantly different from the forecasts due to changes in business conditions including oil and natural gas price levels, production and sales plans, project development schedules, government regulations and financial and tax schemes. Regarding the forecasts, please refer to "1. Summary of Operating Results, etc. (3) Explanation Regarding Future Forecast Information Such as Forecasts for Consolidated Financial Results" on page 3.

Exhibit:

Dividends of Class A stock

		Cash dividends per share
	At 1st quarter end	At 2nd quarter end	At 3rd quarter end	At fiscal year end	Total
	Yen	Yen	Yen	Yen	Yen
For the year ended	－	14,800.00	－	14,800.00	29,600.00
December 31, 2023
For the year ending	－	17,200.00	－
December 31, 2024
For the year ending
December 31, 2024				17,200.00	34,400.00
(Forecasts)

(Note): The Company conducted a stock split at a ratio of 1:400 of common stock effective October 1, 2013. However, for Class A stock (not listed), no stock split was implemented. The article specifying that dividends of Class A stock are equivalent to dividends of common stock prior to the stock split is included in the Articles of Incorporation.

Index of the Attachments

1. Summary of Operating Results, etc.……………………………………………………………………………………………… 2

1. Summary of Consolidated Operating Results ………………………………………………………………………………. 2
2. Summary of Consolidated Financial Position ………………………………………………………………………………. 3

	(3)	Explanation Regarding Future Forecast Information Such as Forecasts for Consolidated Financial Results ………………	3
2.	Condensed Quarterly Consolidated Financial Statements and Principal Notes …………………………………………………	4
	(1)	Condensed Quarterly Consolidated Statement of Financial Position…………………………………………………………	4
	(2)	Condensed Quarterly Consolidated Statement of Profit or Loss and
		Condensed Quarterly Consolidated Statement of Comprehensive Income …………………………………………………	6
	(3)	Notes to Condensed Quarterly Consolidated Financial Statements …………………………………………………………	8
	(Notes on Going Concern Assumption) …………………………………………………………………………………………	8
	(Notes on Significant Changes in Shareholders' Equity)…………………………………………………………………………	8
	(Notes on Condensed Quarterly Consolidated Statement of Cash Flows) ………………………………………………………	8
	(Segment Information) ……………………………………………………………………………………………………………	8
3.	Supplementary Information ………………………………………………………………………………………………………	9
	(1)	Production, Orders Received and Sales Performance…………………………………………………………………………	9

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1. Summary of Operating Results, etc.

1. Summary of Consolidated Operating Results
   Regarding the Company's consolidated financial results for the nine months ended September 30, 2024, revenue increased by
   ¥145.3 billion, or 9.1%, to ¥1,747.5 billion from the corresponding period of the previous fiscal year due to the depreciation in the average exchange rate of the Japanese yen against the U.S. dollar during the period. Revenue of crude oil increased by ¥159.9 billion, or 13.7%, to ¥1,327.7 billion, and revenue of natural gas (excluding LPG) decreased by ¥14.5 billion, or 3.5%, to ¥398.0 billion. Sales volume of crude oil increased by 900 thousand barrels, or 0.9%, to 105,628 thousand barrels, and sales volume of natural gas increased by 3,368million cf, or 0.9%, to 366,090million cf. Sales volume of overseas natural gas increased by 2,699million cf, or 0.9%, to 293,509million cf, and sales volume of domestic natural gas increased by 18 million ㎥, or 0.9%, to 1,938 million ㎥ (72,313 million cf). The average sales price of overseas crude oil increased by US$2.32, or 2.9%, to US$82.99 per barrel. The average sales price of overseas natural gas decreased by US$0.20, or 3.5%, to US$5.56 per thousand cf, and the average sales price of domestic natural gas decreased by ¥16.65, or 17.7%, to ¥77.31 per m3. The average exchange rate of the Japanese yen against the U.S. dollar on consolidated revenue increased by ¥13.31, or 9.6%, to ¥151.46 per U.S. dollar.
   The increase of ¥145.3 billion in revenue was mainly derived from the following factors: regarding revenue of crude oil and natural gas, an increase in sales volume contributing ¥14.2 billion to the increase, a decrease in unit sales price contributing ¥9.2 billion to the decrease, and the depreciation in the average exchange rate of the Japanese yen against the U.S. dollar contributing ¥140.3 billion to the increase.
   Meanwhile, cost of sales increased by ¥66.1 billion, or 10.4%, to ¥701.7 billion. Exploration expenses increased by ¥42.9 billion, or 507.6%, to ¥51.3 billion. Selling, general and administrative expenses increased by ¥26.0 billion, or 35.5%, to ¥99.6 billion. Other operating income increased by ¥19.8 billion, or 126.4%, to ¥35.5 billion. Other operating expenses decreased by ¥90.7 billion, or 93.2%, to ¥6.6 billion. Share of profit of investments accounted for using equity method increased by ¥82.3 billion, or 684.1%, to ¥94.4 billion. As a result, operating profit increased by ¥203.1 billion, or 24.9%, to ¥1,018.0 billion.
   Finance income decreased by ¥54.9 billion, or 32.7%, to ¥112.8 billion. Finance costs increased by ¥23.2 billion, or 39.3%, to ¥82.5 billion. As a result, profit before tax increased by ¥124.9 billion, or 13.5%, to ¥1,048.4 billion.
   Income tax expense increased by ¥88.4 billion, or 13.5%, to ¥744.8 billion. Profit attributable to non-controlling interests increased by ¥13.2 billion, to ¥14.1 billion. As a result of the above effects, profit attributable to owners of parent increased by ¥23.2 billion, or 8.7%, to ¥289.4 billion.
   Operating results by segment are as follows:
2. 1. Oil & Gas Japan
      Revenue decreased by ¥31.5 billion, or 16.7%, to ¥157.9 billion due to a decrease in sales price of natural gas. Profit attributable to owners of parent decreased by ¥25.3 billion, or 68.6%, to ¥11.6 billion.
   2. Oil & Gas Overseas - Ichthys Project
      Although revenue increased by ¥9.0 billion, or 3.3%, to ¥282.6 billion due to an increase in the depreciation of the Japanese yen against the U.S. dollar, profit attributable to owners of parent decreased by ¥36.9 billion, or 15.8%, to ¥196.6 billion due to an increase in exploration expenses and others.
   3. Oil & Gas Overseas - Other Projects
      Revenue increased by ¥162.6 billion, or 14.5%, to ¥1,282.0 billion due to the depreciation of the Japanese yen against the U.S. dollar and an increase in sales volume. Profit attributable to owners of parent increased by ¥85.9 billion, to ¥92.6 billion.

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1. Summary of Consolidated Financial Position
   Total assets as of September 30, 2024 increased by ¥254.7 billion to ¥6,994.2 billion, compared to December 31, 2023. Current assets increased by ¥213.2 billion to ¥1,051.6 billion due to an increase in cash and cash equivalents, and others. Non-current assets increased by ¥41.5 billion to ¥5,942.6 billion due to an increase in investments accounted for using equity method and others.
   Meanwhile, total liabilities increased by ¥150.3 billion to ¥2,390.8 billion. Current liabilities increased by ¥240.0 billion to ¥812.2 billion and non-current liabilities decreased by ¥89.6 billion to ¥1,578.6 billion.
   Total equity increased by ¥104.3 billion to ¥4,603.4 billion. Equity attributable to owners of parent increased by ¥100.7 billion to ¥4,309.8 billion. Non-controlling interests increased by ¥3.6 billion to ¥293.5 billion.
2. Explanation Regarding Future Forecast Information Such as Forecasts for Consolidated Financial Results
   The Company revised its consolidated financial forecasts for the year ending December 31, 2024 mainly due to a revision in the tax cost forecast, despite a slight decrease in the forecasted sales volume.
   Forecasts for consolidated financial results for the year ending December 31, 2024

				(Millions of yen)
	Revenue	Operating profit	Profit before tax	Profit attributable to
	owners of parent
Previous forecasts: A	2,254,000	1,249,000	1,282,000	360,000
Revised forecasts: B	2,243,000	1,224,000	1,269,000	380,000
Increase (Decrease): B-A	(11,000)	(25,000)	(13,000)	20,000
Percentage change (%)	(0.5)	(2.0)	(1.0)	5.6

The above forecasts are calculated based on the following assumptions:

		Previous forecasts	Revised forecasts
		First Half average:	US$83.4/bbl	First Half average:	US$83.4/bbl
Crude oil price	Second Half average:	US$76.6/bbl	Second Half average:	US$76.6/bbl
- 3rd quarter average:	US$79.0/bbl	- 3rd quarter average:	US$78.7/bbl
(Brent)
- 4th quarter average:	US$74.2/bbl	- 4th quarter average:	US$74.5/bbl
		Full Year average:	US$80.0/bbl	Full Year average:	US$80.0/bbl
		First Half average:	¥152.4/US$	First Half average:	¥152.4/US$
Exchange rate	Second Half average:	¥143.6/US$	Second Half average:	¥147.6/US$
		Full Year average:	¥148.0/US$	Full Year average:	¥150.0/US$

Crude oil prices at which the Company sells products vary depending on crude oil type and differ from Brent crude oil prices. Crude oil price differences are determined by the quality of each crude oil type, etc., and are also affected by market conditions.

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2. Condensed Quarterly Consolidated Financial Statements and Principal Notes

(1) Condensed Quarterly Consolidated Statement of Financial Position

		(Millions of yen)
Accounts	As of December 31, 2023	As of September 30, 2024
Assets
Current assets
Cash and cash equivalents	201,149	329,385
Trade and other receivables	232,017	198,146
Inventories	69,856	64,633
Income taxes receivable	10,640	2,396
Loans receivable	42,350	47,809
Other financial assets	227,068	346,861
Other current assets	37,992	45,066
Subtotal
821,075	1,034,299
Assets held for sale	17,341	17,341
Total current assets
838,417	1,051,641
Non-current assets
Oil and gas assets	3,601,558	3,563,413
Other property, plant and equipment	25,481	26,697
Goodwill	20,471	20,000
Intangible assets	9,033	14,314
Investments accounted for using equity method	751,903	841,742
Loans receivable	1,306,529	1,278,552
Other financial assets	95,890	118,066
Asset for retirement benefits	896	1,562
Deferred tax assets	72,977	60,947
Other non-current assets	16,316	17,318
Total non-current assets
5,901,058	5,942,616
Total assets
6,739,476	6,994,257

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		(Millions of yen)
Accounts	As of December 31, 2023	As of September 30, 2024
Liabilities and equity
Liabilities
Current liabilities
Trade and other payables	207,913	193,177
Bonds and borrowings	161,059	402,410
Other financial liabilities	40,808	38,899
Income taxes payable	131,721	148,342
Asset retirement obligations	19,018	18,911
Other current liabilities	11,690	10,475
Total current liabilities
572,212	812,217
Non-current liabilities
Bonds and borrowings	895,923	833,119
Other financial liabilities	66,025	54,242
Liability for retirement benefits	803	855
Asset retirement obligations	369,483	375,741
Deferred tax liabilities	332,940	310,619
Other non-current liabilities	3,054	4,040
Total non-current liabilities
1,668,230	1,578,618
Total liabilities
2,240,442	2,390,836
Equity
Common stock	290,809	290,809
Capital surplus	679,131	459,623
Retained earnings	2,746,530	2,935,673
Treasury stock	(221,330)	(87,481)
Other components of equity	713,959	711,220
Total equity attributable to owners of parent
4,209,101	4,309,846
Non-controlling interests	289,932	293,574
Total equity
4,499,033	4,603,421
Total liabilities and equity
6,739,476	6,994,257

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(2) Condensed Quarterly Consolidated Statement of Profit or Loss and Condensed Quarterly Consolidated Statement of Comprehensive Income

Condensed Quarterly Consolidated Statement of Profit or Loss

		(Millions of yen)
Accounts	For the nine months ended	For the nine months ended
September 30, 2023	September 30, 2024
Revenue	1,602,224	1,747,557
Cost of sales	(635,597)	(701,743)
Gross profit
966,627	1,045,814
Exploration expenses	(8,458)	(51,395)
Selling, general and administrative expenses	(73,582)	(99,668)
Other operating income	15,694	35,535
Other operating expenses	(97,378)	(6,639)
Share of profit (loss) of investments accounted for using	12,043	94,432
equity method
Operating profit	814,945	1,018,079
Finance income	167,803	112,855
Finance costs	(59,246)	(82,522)
Profit before tax
923,502	1,048,412
Income tax expense	(656,336)	(744,816)
Profit
267,165	303,596
Profit attributable to
Owners of parent	266,212	289,422
Non-controlling interests	953	14,173
Profit
267,165	303,596
Earnings per share
Basic earnings per share (Yen)	204.27	231.91
Diluted earnings per share (Yen)	204.13	231.75

- 6 -

Condensed Quarterly Consolidated Statement of Comprehensive Income

		(Millions of yen)
Accounts	For the nine months ended	For the nine months ended
September 30, 2023	September 30, 2024
Profit	267,165	303,596
Other comprehensive income
Items that will not be reclassified to profit or loss
Financial assets measured at fair value through other	4,549	(794)
comprehensive income
Total items that will not be reclassified to profit or loss	4,549	(794)
Items that may be reclassified subsequently to profit or loss
Cash flow hedges	(2,358)	1,235
Exchange differences on translation of foreign operation	524,464	10,053
Financial assets measured at fair value through other	(932)	533
comprehensive income
Share of other comprehensive income of investments	7,017	(12,841)
accounted for using equity method
Total items that may be reclassified subsequently to	528,190	(1,018)
profit or loss
Other comprehensive income, net of tax	532,740	(1,813)
Comprehensive income
799,906	301,783
Comprehensive income attributable to	－	－
Owners of parent	772,147	286,683
Non-controlling interests	27,759	15,099
Comprehensive income
799,906	301,783

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