INPEX (1605) Investor Day 2026 summary

Energy supply and portfolio strategy

• Energy flows and business models are expected to remain changed even if the Strait of Hormuz stabilizes; the UAE is building a second pipeline to Fujairah for completion next year and a third by 2029.

• Japan’s Middle East oil share fell from 93% of imports to 70%; U.S. and other non-Middle East supplies and 220 days of stockpiles support stable supply despite higher sourcing costs.

• The Middle East remains strategically important for large, efficient reserves and shorter shipping routes; plans include stronger supply security and collaboration to expand regional production.

• Strategy emphasizes Asia-local production and consumption, using Australia and Indonesia assets to serve LNG demand; investment selection considers efficiency, shipping time and portfolio balance.

Production and growth

• Production rose from 450,000 boe/d in FY2018 to 630,000 boe/d in FY2026; Abadi is targeted to lift output to 800,000+ boe/d after starting in the early 2030s.

• Ichthys plateau production is to be maintained through backfill; additional growth investments are planned in Europe and the Middle East.

• Before Abadi starts, growth investments focus on Southeast Asia and Abu Dhabi, leveraging existing assets for short- to medium-term cash flow; Malaysia producing assets and increased ACG interest support near-term contributions.

• Operating cash flow rose from ¥212.7bn in 2018 to ¥1.055tn and is projected to reach ¥1.5tn after Abadi starts, with business size expanding 60%.

Capital allocation and shareholder returns

• FY2025–27 cash plan: ¥3tn operating cash flow plus ¥350bn borrowing; uses include ¥1,950bn investment and ¥700bn+ each for shareholder returns and Abadi reserves.

• FY2025–27 investments include ~¥950bn for maintenance and renewal, ~¥100bn for exploration and ~¥200bn for Abadi; Abadi development reserves are expected to reach ~¥900bn by end-FY2027.

• Returns include progressive annual dividends starting at ¥90/share and a total return ratio of 50%+; the current return level is to be maintained at least after Abadi starts.

• FY net income forecast was raised to ~¥510bn, subject to oil prices; the ¥110bn buyback ceiling would be a record, alongside higher dividends and a payout ratio above 50%.

• As Abadi investment peaks, cash flow and reserve drawdowns are expected to support returns; debt repayment follows the peak, with repayment expected in around two years.