Inpex : Financial Results for the six months ended June 30, 2022 Presentation Material (Appendix) (PDF 2.87MB)

Financial results for the six months ended June 30, 2022

Appendix

INPEX CORPORATION

August 9, 2022

Subsidiaries and Affiliates

67 Consolidated Subsidiaries

Major Subsidiaries	Country / Region	Ownership	Phase	Accounting Term
INPEX Sahul, Ltd.	Timor-Leste	100%	Production	December
INPEX Ichthys Pty Ltd	Australia	100%	Production	December
INPEX Oil & Gas Australia Pty Ltd	Australia	100%	Production	December
INPEX Southwest Caspian Sea, Ltd.	Azerbaijan	51%	Production	December
INPEX North Caspian Sea, Ltd.	Kazakhstan	51%	Production	December
Japan Oil Development Co., Ltd.	UAE	100%	Production	December
JODCO Onshore Limited	UAE	65.76 %	Production	December
JODCO Lower Zakum Limited	UAE	100%	Production	December
INPEX Eagle Ford, LLC	United States	100%	Production	December
INPEX Idemitsu Norge AS	Norway	50.5%	Production	December

22 Equity Method Affiliates

Major Equity Method Affiliates	Country / Region	Ownership	Phase	Accounting Term
Ichthys LNG Pty Ltd	Australia	66.245%	Production	December
MI Berau B.V.	Indonesia	44%	Production	December

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1

Segment Information

• For the six months ended June 30, 2022 (January 1, 2022 to June 30, 2022)

								(Millions of yen)
			Reportable segments
	Japan	Asia &	Eurasia	Middle East	Americas	Total	Adjustments *1	Consolidated *2
	Oceania	(Europe &	& Africa
		NIS)
Net sales	97,156	274,559	178,025	540,624	18,306	1,108,674	(10,197)	1,098,476
Segment income	(3,678)	147,557	94,848	342,511	11,192	592,431	(7,938)	584,493
(loss)

*1 Adjustments of segment income (loss) of ¥(7,938) million are corporate expenses. Corporate expenses are mainly amortization of goodwill and general administrative expenses that are not allocated to a reportable segment.

*2 Segment income (loss) is reconciled with operating income on the consolidated statement of income.

Copyright © 2022 INPEX CORPORATION. All rights reserved.

2

LPG Sales

	2Q FY2021	2Q FY2022	Change	% Change
	(January - June '21)	(January - June '22)
Net sales (Billions of yen)	1.4	2.1	0.7	46.9%
Sales volume (thousand bbl)	174	34	(140)	(80.2%)
Average unit sales price of	51.23	69.56	18.33	35.8%
overseas sales ($/bbl)
Average unit sales price of	78.53	108.93	30.40	38.7%
domestic production (¥/kg)
Average exchange rate (¥/$)	107.73	122.54	14.81yen	13.7%
depreciation	depreciation

Copyright © 2022 INPEX CORPORATION. All rights reserved.

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Other Income and Expenses

	2Q FY2021	2Q FY2022	Change	% Change
	(January - June '21)	(January - June '22)
(Billions of Yen)
Other income	36.7	143.1	106.4	289.8%
Interest income	14.4	16.5	2.0	14.0%
Dividend income	3.4	8.3	4.8	139.9%
Equity in earnings of affiliates	-	101.3	101.3	－
Gain on reversal of allowance for
recoverable accounts under production	4.3	6.7	2.4	55.1%
sharing
Other	14.3	10.1	(4.2)	(29.4%)
Other expenses	40.5	101.4	60.9	150.2%
Interest expense	6.9	9.9	2.9	42.7%
Equity in losses of affiliates	12.9	-	(12.9)	(100.0%)
Foreign exchange loss	10.6	1.2	(9.4)	(88.2%)
Modification loss on financial assets	-	80.0	80.0	－
Other	9.9	10.2	0.3	3.6%

Copyright © 2022 INPEX CORPORATION. All rights reserved.				4
EBIDAX
		2Q FY2021	2Q FY2022
	(Millions of yen)	(January -	(January -	Change	Note
	June '21)	June '22)
	Net income attributable to owners of parent	51,982	184,462	132,480	P/L
	Net income (loss) attributable to non-controlling	(8,182)	(3,627)	4,555	P/L
	interests
	Depreciation equivalent amount	108,892	187,189	78,297
	Depreciation and amortization	77,249	141,167	63,918	C/F Depreciation under concession
	agreements and G&A
	Amortization of goodwill	3,380	4,309	929	C/F
	Recovery of recoverable accounts under	28,263	41,713	13,450	C/F Depreciation under PS contracts
	production sharing (capital expenditures)
	Exploration cost equivalent amount	(2,090)	6,606	8,696
	Exploration expenses	2,281	13,385	11,104	P/L Exploration expenses under
	concession agreements
	Gain on reversal of allowance for				P/L Exploration expenses under PS
	recoverable accounts under production	(4,371)	(6,779)	(2,408)
	contracts
	sharing
	Material non-cash items	27,908	28,451	543
	Income taxes-deferred	17,405	13,463	(3,942)	P/L
	Foreign exchange loss (gain)	10,503	14,988	4,485	C/F
	Net interest expense after tax	(5,420)	(4,736)	684	P/L After-tax interest expense minus
	interest income
	EBIDAX	173,090	398,345	225,255

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5

Analysis of Recoverable Accounts under Production Sharing

		2Q FY2021	2Q FY2022	Note
(Millions of yen)		(January - June '21)	(January - June '22)
Balance at beginning of the period	575,544	548,170
Add:	Exploration costs	553	636	Mainly Iraq Block10
	Development costs	12,094	16,496	Mainly ACG, Kashagan and Con Son
	Operating expenses	7,538	10,605	Mainly ACG and Kashagan
	Other	1,866	2,124
Less:	Cost recovery (CAPEX)	28,263	41,713	Mainly ACG and Kashagan
	Cost recovery (non-CAPEX)	7,896	7,969	Mainly ACG and Kashagan
	Other	-	601
Balance at end of the period	561,437	527,749	Mainly Kashagan
Less allowance for recoverable accounts under	65,072	54,490
production sharing at end of the period

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6

Shareholder Returns

Annual Dividend per share

Dividends, Share Buybacks and Total Payout Ratio

50	円																150
40	円																		120
30	円																		90
														48
20	円																		60
										30
10	円									24			24				30
	18		18		18		18
										0
0	円
	2015/3	2016/3	2017/3	2018/3	2019/3	2019/12	2020/12	2021/12

Annual dividend per share (yen)

								200%
	156.7%							180%
							160%
							70.0	140%
								120%
		56.9%				61.9%		100%
							80%
			65.1%	36.5%	35.5%
33.8%				*		60%
					68.0
							40%
					43.8
				35.0	35.0		20%
26.3	26.3	26.3	26.3
2015/3	2016/3	2017/3	2018/3	2019/3	2019/12	2020/12	2021/12	0%

• The total payout ratio for FY2020/12 is NA due to net loss.
  Total share buybacks (Billions of yen)
  Total payout ratio (%)

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7

Valuation Indices

			EV/Proved Reserves*1				PBR*2
20.0					3.0
15.0					2.5
				2.0
	22.2
10.0				1.5
		13.6			2.6
					1.0
5.0
					1.4
6.8				0.5
					0.6
0.0					0.0
INPEX	Median of	Median of Oil Majors		INPEX	Median of	Median of Oil Majors
			Independents						Independents

*1 EV (Enterprise Value) / Proved Reserves = (Total market value + Total debt - Cash and cash equivalent + Non-controlling interests) / Proved Reserves. Financial data as of March 31, 2022 (partly as of December 31, 2021). Proved Reserves as of December 31, 2021. Sources based on public data.

*2 PBR = Share price / Net asset per share. Total market value as of June 30, 2022. Financial data as of March 31, 2022 (partly as of December 31, 2021). Sources based on public data.

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8

Net Production (January to June 2022)

Oil, Condensate and LPG

2%	1%
13%	397 thousand BOE/day
9	3
51

17%		Japan

69 Asia/Oceania

265						Eurasia (Europe/NIS)
67%						Middle East/Africa
						Americas
			Natural Gas
4%	1%	8%
1,344 million cf/day
	9	104	(257 thousand BOE/day)
	53

			Japan
	1,178		Asia/Oceania
		Eurasia (Europe/NIS)
87%			Americas

Oil and Gas Total

654 thousand BOE/day

2% 3%

10 22

40%

265

279

43%

79

	12%
Japan		Asia/Oceania		Eurasia (Europe/NIS)
Middle East/Africa		Americas

* The production volume under the production sharing contracts corresponds to the net economic take of the INPEX Group.

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