INPEX (1605) Q2 2024 earnings summary

Executive summary

• Achieved record-high shareholder returns with increased dividends and share buybacks, reflecting strong financial performance and capital efficiency initiatives.

• Revenue for the six months ended June 30, 2024 rose 10.4% year-over-year to ¥1,190.8 billion, driven by yen depreciation and higher crude oil sales volume.

• Operating profit increased 15.3% to ¥700.1 billion, but profit attributable to owners of parent fell 14.5% to ¥212.5 billion due to higher costs and tax expenses.

• Enhanced focus on sustainable growth, capital efficiency, and net zero businesses, including renewables, hydrogen, and CCS.

• Comprehensive income surged 29.0% to ¥822.0 billion, reflecting significant foreign exchange gains.

Financial highlights

• Crude oil revenue grew 16.4% year-over-year, while natural gas revenue fell 5.1%.

• Basic EPS for 2Q FY2024 was ¥169.26, down 11.0% year-over-year.

• Cost of sales increased 11.2% to ¥473.2 billion; exploration expenses rose sharply to ¥49.5 billion.

• Total assets reached ¥7,765.6 billion, up ¥1,026.1 billion from December 2023.

• Net production volume increased to 662 thousand boed in 2Q FY2024.

Outlook and guidance

• Full-year 2024 profit forecast maintained at ¥360.0 billion, with revenue revised up to ¥2,254 billion (+4.1%).

• Annual dividend forecast raised to ¥86 per share (+12 yen YoY); total payout ratio expected at 65%.

• Share buyback program increased to ¥130 billion, both dividend and buyback at record levels.

• Brent oil price assumption for full year is $80/bbl; exchange rate assumption is ¥148/$.

• Forecasts reflect steady production progress, revised sales volume, and updated crude oil price and exchange rate assumptions.