INPEX (1605) Q2 2026 earnings summary

Executive summary

• Achieved record-high first-half profit of ¥263.1 billion, up 17.7% year-over-year, despite a 4.6% revenue decline due to lower crude oil sales volumes from Middle East conflict impacts; strong Ichthys LNG performance and higher oil prices offset volume losses.

• Full-year net profit forecast revised up to a record ¥510.0 billion, driven by portfolio diversification, higher realized sales prices, and stable Ichthys operations, despite ongoing Middle East uncertainties.

• Shareholder returns set at a record ¥112 per share and ¥140.0 billion in share buybacks, with a total payout ratio of 53%.

• Total comprehensive income surged to ¥459.8 billion from a loss of ¥180.6 billion in the prior year period, reflecting significant positive exchange differences.

Financial highlights

• Revenue for H1 FY2026 was ¥1,000.4 billion, down 4.6% year-over-year; operating profit was ¥618.7 billion, up 0.3%.

• Profit attributable to owners of parent rose to ¥263.1 billion (+17.7% YoY); EPS increased to ¥226.33 (+21.3% YoY).

• Crude oil revenue declined by ¥85 billion year-over-year, while natural gas revenue increased by ¥20.5 billion, mainly from Ichthys.

• Cash and cash equivalents at June 30, 2026, were ¥216.2 billion, up from ¥168.4 billion at year-end 2025.

• Operating cash flow exceeded ¥1 trillion; investment cash flow for the year is projected at ¥859 billion.

Outlook and guidance

• Full-year 2026 profit forecast revised up by ¥60.0 billion to ¥510.0 billion, assuming normalization of Abu Dhabi sales by October and stable Ichthys production.

• Full-year revenue forecast at ¥1,973.0 billion (down 1.9% YoY); dividend forecast revised upward to ¥112 per share.

• Oil price assumptions: $80/bbl for Q3, $70/bbl for Q4, and full-year Brent average $81.4/bbl; FX rate expected at ¥159.2/$.

• If Strait of Hormuz remains closed through year-end, estimated negative impact is less than ¥10 billion.

• Net production volume projected to rise from 630 kboe/d to 800 kboe/d by 2035, with operating cash flow expected to reach ¥1.5 trillion (+67% vs. FY2024).