INPEX (1605) Q2 2025 earnings summary

Executive summary

• First half 2025 profit reached ¥223.5 billion, up 5.1% year-over-year, despite revenue and operating profit declines due to lower oil prices and yen appreciation.

• Revenue for the six months ended June 30, 2025, declined 11.9% year-over-year to ¥1,048.8 billion, mainly due to lower crude oil prices despite higher sales volume.

• Operating profit fell 11.9% to ¥616.8 billion, while profit attributable to owners of parent rose 5.1% to ¥223.5 billion, aided by lower income tax expense.

• Upward revision of full-year profit forecast to ¥370 billion, a ¥70 billion increase from May, driven by higher oil price and weaker yen assumptions.

• Comprehensive income turned negative at ¥(180.6) billion, impacted by significant foreign exchange translation losses.

Financial highlights

• Revenue for 2Q FY2025 was ¥1,048.8 billion, down 11.9% year-over-year; operating profit fell 11.9% to ¥616.8 billion.

• Profit attributable to owners of parent rose to ¥223.5 billion, a 5.1% increase year-over-year.

• Basic EPS increased to ¥186.65 from ¥169.26 year-over-year; BPS declined 4.9% to ¥3,830.23.

• Total assets as of June 30, 2025, were ¥7,029.3 billion, down from ¥7,380.9 billion at year-end 2024.

• Cash and cash equivalents rose to ¥262.4 billion, with net cash from operating activities at ¥427.9 billion for the period.

Outlook and guidance

• Full-year profit forecast revised up to ¥370 billion, reflecting higher oil price and weaker yen assumptions.

• Full-year 2025 revenue forecast revised upward to ¥1,995.0 billion, operating profit to ¥1,085.0 billion.

• ROE expected at 8.2%, on par with cost of equity; ROIC to reach 7.1%, exceeding WACC.

• Dividend forecast for 2025 raised to ¥100 per share, up from ¥86 in 2024.

• Progressive annual dividend starting at ¥90/share, with a total return ratio target of 50% or more.