INPEX (1605) Q4 2025 earnings summary

Executive summary

• Net profit for FY2025 was ¥393.8 billion, the third highest on record and a record when adjusted for oil price and FX, despite a YoY decrease due to lower oil prices and yen appreciation.

• Share price surged 60% over the year, outperforming the TOPIX's 22% rise, even as Brent crude oil prices fell 18%.

• Announced INPEX Vision 2035, focusing on future growth and enhanced shareholder returns.

• Revenue for FY2025 was ¥2,011.3 billion, down 11.2% YoY, mainly due to lower crude oil sales prices despite higher sales volume.

• Comprehensive income dropped sharply to ¥166.2 billion from ¥878.1 billion the previous year, reflecting significant negative other comprehensive income.

Financial highlights

• FY2025 net profit: ¥393.8 billion, down from ¥427.3 billion in FY2024 due to lower oil prices and Ichthys shutdown.

• Revenue for FY2025 was ¥2,011.3 billion, down 11.2% YoY; operating profit fell 10.7% to ¥1,135.4 billion.

• Basic earnings per share was ¥330.82, down from ¥345.31 year-over-year.

• Free cash flow expected to turn negative in 2026 due to increased investment, first time since 2019.

• Cash and cash equivalents at year-end were ¥168.4 billion, down from ¥241.7 billion.

Outlook and guidance

• FY2026 profit forecast is ¥330.0 billion, based on conservative oil price ($63 Brent) and FX (¥151/USD) assumptions.

• Revenue for FY2026 is forecast to decrease by 5.9% to ¥1,893.0 billion, with operating profit expected to fall 15.7% to ¥957.0 billion.

• Dividend per share is expected to rise to ¥108 for 2026, maintaining a payout ratio above 50%.

• CFFO projected at ¥842.0 billion, with significant growth investments in oil and gas planned.

• ROE projected at 7% and ROIC at 6% for 2026, below the equity cost and WACC.