Inpex : Financial Results for the nine months ended September 30, 2024 Support Material

Support Material

Financial Results for the nine months ended September 30, 2024

INPEX CORPORATION (Securities Code:1605)

November 12, 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.

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Highlights of the Consolidated Financial Results for the Nine Months ended September 30, 2024

	3Q FY2023	3Q FY2024	Change	% Change
Average crude oil price (Brent) ($/bbl)	81.94	81.82	(0.12)	(0.1%)
Average exchange rate (¥/$)	138.24	151.45	13.21 yen	9.6%
depreciation	depreciation
Revenue (Billions of yen)	1,602.2	1,747.5	145.3	9.1%
Operating profit (Billions of yen)	814.9	1,018.0	203.1	24.9%
Profit before tax (Billions of yen)	923.5	1,048.4	124.9	13.5%
Profit attributable to owners of parent (Billions of yen) *1	266.2	289.4	23.2	8.7%
Basic earnings per share (EPS) (Yen) *2	204.27	231.91	27.64	13.5%
			Change	% Change
	December 2023	September 2024
Equity attributable to owners of parent per share (BPS) (Yen)	3,345.22	3,534.21	188.99	5.6%
*1 Profit contribution (segment profit) from Ichthys LNG for the nine months ended September 30, 2023: 233.6 billion yen
Profit contribution (segment profit) from Ichthys LNG for the nine months ended September 30, 2024: 196.6 billion yen
*2 Average number of INPEX shares issued and outstanding during the nine months ended September 30, 2023: 1,303,261,977 shares			2
Average number of INPEX shares issued and outstanding during the nine months ended September 30, 2024: 1,247,995,136 shares

Revenue by Major Product

Revenue, Sales volume, Unit price and Exchange rate			Analysis of Revenue
				Change	% Change	(Billions of yen)
		3Q FY2023	3Q FY2024	Crude Oil
							+159.9
	Revenue
	1,167.7	1,327.7	159.9	13.7%				+115.8
	(Billions of yen)			+34.0
	Sales volume						+10.0
	104,728	105,628	900	0.9%
	(thousand bbl)
Crude Oil
Average unit price of									1,327.7
	80.67	82.99	2.32	2.9%	1,167.7
	overseas sales ($/bbl)
	Average exchange rate	138.23	151.48	13.25 yen	9.6%
	(¥/$)	depreciation	Depreciation	3Q FY2023	Increase in	Increase in	Exchange	3Q FY2024
	Revenue						sales volume	unit price	rate
	412.5	398.0	(14.5)	(3.5%)
	(Billions of yen)	Natural Gas (excluding LPG)
						(14.5)
	Sales volume	362,722	366,090	3,368	0.9%
		+4.2
	(million cf)			+24.5
Natural Gas	Average unit price of
(excluding	overseas sales	5.76	5.56	(0.20)	(3.5%)			(43.2)
LPG)	($/thousand cf)					412.5				398.0
	Average unit price of	93.96	77.31	(16.65)	(17.7%)
	domestic sales (¥/m3)
	Average exchange rate	137.94	151.50	13.56 yen	9.8%	3Q FY2023	Increase in	Decrease in	Exchange	3Q FY2024
	(¥/$)	depreciation	Depreciation
							sales volume	unit price	rate
* 1m3=41.8605MJ

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Analysis of Results of Profit Attributable to Owners of Parent (3Q FY2023 vs. 3Q FY2024)

(Billions of yen)

	+23.2
Business activities factors*2 (58.4)		One-off factors*3 +81.6

+145.3

Increase in exploration expenses in Australia, etc.

Increase in R&D expenses

Prelude and renewable energy PJ in FY2023

(77.0)				including costs for Hydrogen and CCS, etc.
							+12.5
(42.9)				+3.8
			(26.0)
									(74.1)
Increase in depreciation and royalty expenses related to crude oil, etc.

Incorporation of foreign exchange gain from absorption-type merger of certain subsidiary, etc.

+11.5 +4.0

+76.4

(10.4)

Tax effect on change in abandonment expenses estimates in FY2023

289.4

266.2

・Increase in sales volume: +14.2 (Crude oil: +10.0, Natural gas: +4.2)

・Decrease in unit price: (9.2)

(Crude oil: +34.0, Natural gas: (43.2))

・Exchange rate: +140.3

(Crude oil: +115.8, Natural gas: +24.5)

・Other: (0.0)

Increase in tax expense due to higher crude oil sales and income, etc.

Gain on sale of certain project assets in Southeast Asia and Middle East

3Q FY2023

Increase in

Increase in

Increase in

Increase in

Share of profit of

Other income

Income tax

Divestment

Absorption-type

Impairment

Income taxes

3Q FY2024

Profit

Revenue

Cost of sales

Exploration

SG&A

investments

(expenses)

expense

merger

loss

(one-off)

Profit

attributable to

expenses

accounted for using

attributable to

owners of parent*1

equity method

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.

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*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).

*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 and Shareholder Returns for the year ending December 31, 2024

Full Year	FY2024	FY2024	Change	% Change
Previous Forecasts	Revised Forecasts
	(August 8, 2024)	(November 12, 2024)
Average crude oil price (Brent) ($/bbl)	80.0	80.0	-	-
Average exchange rate (¥/$)	148.0	150.0	2 yen	1.4%
depreciation	depreciation
Revenue (Billions of Yen)	2,254	2,243	(11)	(0.5%)
Operating profit (Billions of Yen)	1,249	1,224	(25)	(2.0%)
Profit before tax (Billions of Yen)	1,282	1,269	(13)	(1.0%)
Profit attributable to owners of parent (Billions of Yen) *1	360	380	20	5.6%
Basic earnings per share (EPS) (Yen)	290.25	306.85	16.6	5.7%
ROIC(%)	7.5	7.9	0.4	-
ROE(%)	8.4	8.8	0.4	-
Net debt/equity ratio *2	0.33	0.34	0.01	-
*Includes Ichthys downstream IJV and differs from institutional accounting basis

	Dividend and Share Buybacks
DPS (Dividend per Share)		86 yen/share
Share Buybacks		130 billion yen

Total Amount of Shareholder Returns and Total Payout Ratio

Total Amount of Shareholder Returns	Approx. 235.0
billion yen
Total Payout Ratio	Approx. 62%

*1	Profit contribution (segment profit) from Ichthys Project for FY2024 is approx. 235 billion yen (forecasted), same as the forecast in August.
*2	The formula has been changed from August 2024 as follows.	5
	(Before) {Debt -(Cash and deposits + Securities within 3 months + Securities over 3 months)}/Equity

(After) {Debt + Lease liabilities -(Cash and deposits + Securities within 3 months)} /Equity

360.0

FY2024 Financial Forecasts

Analysis of Change in Profit Forecasts (Previous vs. Revised)

(Billions of yen)	Market factors
	+4.5

+4.8

(0.3)

Business Activities factors			Other factors
(7.5)	+23.0
			+23.0
	+18.0

+5.8

（yen/US$）

・Previous 148.0

（US$/bbl）・Revised 150.0 ・Previous 80.0

・Revised 80.0

+4.7

(34.0)

(2.0)

Delayed to next year or later

Increase in R&D expenses

380.0

Repair and inspection of T1/T2 heat exchanger gas leak

Profit

Impact from

Impact from

Temporary

Decrease in

Project

Increase in

PRRT

Updated tax costs

Profit

attributable to

related to

attributable to

Crude oil

Exchange

production

Exploration

Factors

SG&A

owners of parent

optimization of

owners of parent

price

rate

loss event at

Expenses *

(Previous)

organizational

(Revised)

Ichthys

structure

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* While CCS related expenses is accounted for R&D in SG&A expenses for the third quarter financial results, CCS related expense, approx. 10 billion yen, is included in

exploration expenses in profit forecast (this slide).

FY2024 Financial Forecasts

Cash Flow*1

		1. FY2022	2. FY2023	FY2024	3. FY2024	FY2022-2024
		Actual	Actual	Previous	Revised	in total
				Forecasts	Forecasts	(1.+2.+3.)
				(August 8, 2024)	(November 12, 2024)
(Billions of Yen)
Cash Flow from Operations before exploration investment	1,061.6	1,068.7	906.0	851.0		2,981.3
Cash Flow from Investment (inclusive of exploration investment)	(377.8)	(578.9)	(388.0)	(341.0)		(1,297.7)
	Growth Investment	(336.1)	(333.6)	(555.0)	(423.0)		(1,092.7)
	Development expenditure (Oil & Gas Business)	(279.4)	(229.6)	(468.0)	(349.0)		(858.0)
	Development expenditure (5 Net Zero Business)	(81.8)	(78.9)	(15.0)	(9.0)		(169.7)
	Exploration expenditure (Oil & Gas Business, inclusive of some 5 Net Zero Business) *2	(30.4)	(44.6)	(84.0)	(83.0)		(158.0)
	Others (inclusive of divestment of interests, etc.)	55.5	19.4	12.0	18.0		92.9
	Others (purchase and disposal of investment securities, etc.)	(41.7)	(245.3)	167.0	82.0		(205.0)
Free Cash Flow	683.8	489.8	518.0	510.0		1,683.6
Financial Cash Flow	(634.6)	(563.9)	(525.0)	(517.0)		(1,715.5)
	Shareholder Returns*3	(201.5)	(190.1)	(230.0)	(230.0)		(621.6)
Cash and cash equivalents at end of the year*4 *5	284.6	207.1	200.0	200.0		-
*1	Including cash flow of Ichthys downstream IJV (Ichthys LNG Pty Ltd), a joint venture.
*2	CCS related expenses, approx. 10 billion yen, is included in exploration expenditure in financial forecast (this slide), rather than being a deduction item of Cash Flow from operations before exploration investment in the form of R&D expenditures.
*3	FY2022: FY2021 year end dividend (28 yen) + FY2022 interim dividend (30 yen) + buybacks
	FY2023: FY2022 year end dividend (32 yen) + FY2023 interim dividend (37 yen) + buybacks
	FY2024: FY2023 year end dividend (37 yen) + FY2024 interim dividend (43 yen) + buybacks (forecasts)
*4	Cash and cash equivalents indicate cash, deposits and securities within 3 months. (Change applies from FY2024 revised forecasts (August 8,2024) and onwards)				7
*5	Balance of securities over three months, not included in balance of cash and cash equivalents at end of the year, was about 200 billion yen at the end of September 2024. 160.0 billion yen at the end of the period.(forecasts).

FY2024 Financial Forecasts

ROIC by Segment

	FY2023		FY2024	FY2024
(%)	Actual		Previous Forecasts	Revised Forecasts	Change
		(August 8, 2024)	(November 12 ,2024)
O&G Japan		17.8	7.4	7.3	(0.1)
O&G Overseas Ichthys		8.8	7.1	7.0	(0.1)
O&G Overseas Others		8.1	12.6	14.3	1.7
Others		1.5	(7.1)	(9.0)	(1.9)
Renewable Energy		(2.3)	(1.5)	(3.7)	(2.2)
Hydrogen and CCUS		-	-	-	-
Consolidated financial statements		8.4	7.5	7.9	0.4

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* Invested capital and adjusted profit for each of the segments are referred on page 13.

Appendix

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