INPEX (1605) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 FY2025 declined 10.0% year-over-year to 536.8 billion yen, mainly due to lower crude oil and natural gas prices and sales volumes.

• Operating profit fell 14.8% to 323.8 billion yen, while profit attributable to owners of parent rose 3.7% to 126.2 billion yen, aided by lower tax expenses.

• Basic EPS increased 8.9% to 105.46 yen, reflecting higher net profit despite revenue decline.

• Comprehensive income turned negative at (140.4) billion yen, down from 420.7 billion yen a year earlier, due to significant negative exchange differences.

Financial highlights

• Gross profit declined 10.8% to 319.7 billion yen; operating profit margin compressed.

• Average Brent crude oil price dropped 8.3% year-over-year to $74.98/bbl; yen depreciated 2.7% against the dollar.

• Crude oil revenue decreased 12.5% and natural gas revenue (excluding LPG) fell 2.0% due to lower sales volumes and prices.

• Total assets decreased to 7,119.0 billion yen from 7,380.9 billion yen at year-end 2024.

• Equity attributable to owners of parent fell to 4,630.3 billion yen, with the equity ratio at 65.0%.

Outlook and guidance

• Full-year 2025 revenue forecast revised down 14.0% to 1,822.0 billion yen; operating profit forecast cut 17.2% to 916.0 billion yen.

• Profit attributable to owners of parent for FY2025 revised down 9.1% to 300.0 billion yen.

• Average Brent crude oil price assumption lowered to $65/bbl; yen expected to appreciate to 144/US$.

• Net production volume outlook for FY2025 set at 632 thousand BOE/day.

• Forecasts reflect lower crude oil price assumptions and a stronger yen.