INPEX (1605) Q4 2024 earnings summary

Executive summary

• Revenue rose to ¥2,265.8 billion (JPY 2.2 trillion), operating profit reached ¥1,271.7 billion, and net income was ¥427.3 billion for FY2024, marking the second highest profit in company history, up 32.8% year-over-year.

• Achieved highest historical dividend at ¥86 per share and ¥130 billion in share buybacks, with a progressive dividend policy planned for FY2025.

• Zero major accidents reported; Ichthys LNG production issue resolved and operations restored.

• The company is shifting from debt repayment to growth investment and shareholder returns, focusing on natural gas/LNG, low-carbon solutions, and leveraging subsurface expertise.

• Comprehensive income attributable to owners of parent grew to ¥842.9 billion.

Financial highlights

• Revenue increased by over ¥100 billion year-over-year, mainly due to FX tailwinds and higher crude oil sales volume, despite lower unit prices.

• Operating profit increased 14.1% to ¥1,271.7 billion; EPS grew 38.9% to ¥345.31.

• Free cash flow for FY2024 was ¥525.2 billion.

• Net debt/equity ratio improved to 0.33 from 0.39, within financial discipline.

• Divestment gains of ¥17 billion and tax optimization contributed to net income.

Outlook and guidance

• FY2025 forecasts: revenue to decline 6.5% to ¥2,119.0 billion, profit attributable to owners of parent to decrease 22.8% to ¥330.0 billion, and operating profit expected at ¥1,106.0 billion.

• Assumptions: Brent at $75/bbl, FX at ¥153/USD.

• ROIC expected at 6.3%, above WACC; ROE projected at 7%.

• Major impacts: lower oil price, Ichthys shutdown (¥-79.6 billion), and reduced tax effects.

• Dividend payout set to rise to ¥90 per share for FY2025, with additional returns considered.