INPEX (1605) Q4 2023 earnings summary

Executive summary

• FY2023 net sales were ¥2,165,702 million, down 6.8% YoY; operating income was ¥1,121.8bn, down 10.0%, and net income attributable to owners of parent was ¥371,531 million, down 19.4%.

• Average production was 630 thousand BOE/day. Lower crude oil sales prices drove the revenue decline; higher natural gas sales volume and yen depreciation partly offset the impact.

• Portfolio developments included Tangguh LNG Train 3 start-up, Abadi CCS approval and new partners, and expanded exploration activity in Malaysia.

Financial highlights

• Net sales were ¥2,165.7bn versus ¥2,324.7bn; operating income was ¥1,121.8bn versus ¥1,246.4bn; ordinary income was ¥1,350.4bn versus ¥1,442.0bn.

• Net income attributable to owners of parent was ¥371.5bn versus ¥461.1bn; basic EPS was ¥287.05 versus ¥337.37.

• Operating cash flow rose to ¥786.3bn from ¥751.3bn; investing outflow narrowed to ¥324.3bn from ¥525.6bn, while financing outflow widened to ¥480.3bn from ¥241.9bn.

• Segment income totaled ¥377,943 million before ¥(6,412) million of adjustments; from FY2023, segment income is defined as net income attributable to owners of parent.

Outlook and guidance

• FY2024 IFRS forecast: revenue ¥1,931.0bn, operating profit ¥1,010.0bn, profit before tax ¥1,043.0bn, and profit attributable to owners of parent ¥330.0bn; FY2023 comparisons are not shown due to the accounting basis change.

• FY2024 forecast sales volumes: crude oil 135.344 million bbl, down 1.9% YoY; natural gas 524,061 million cf, up 9.2%; LPG 470 thousand bbl, up 4.0%.

• Forecast assumptions include Brent crude at US$73/bbl and an exchange rate of ¥138/US$; FY2024 common-stock dividends are forecast at ¥76/share.

• Japan natural gas sales are forecast at 2.22 billion m³ in FY2024, versus 2.04 billion m³ in FY2023; 2030 distribution outlook is 2.70 billion m³.

• Ichthys aims to raise LNG capacity from ~8.9 mtpa to 9.3 mtpa; Abadi targets early FID and start-up with new partners.