INPEX (1605) Q3 2024 earnings summary

Executive summary

• Revenue for the nine months ended September 30, 2024, rose 9.1% year-over-year to ¥1,747.6 billion, driven by yen depreciation and higher crude oil sales volume.

• Operating profit increased 24.9% to ¥1,018.1 billion, and net profit attributable to owners rose 8.7% to ¥289.4 billion.

• Crude oil sales drove growth, offsetting a decline in natural gas revenue; Ichthys LNG segment profit decreased to ¥196.6 billion from ¥233.6 billion year-over-year.

• Average Brent crude price remained stable at $81.82/bbl, while the yen depreciated 9.6% against the dollar, boosting results.

Financial highlights

• Gross profit rose to ¥1,045.8 billion; cost of sales increased 10.4% due to higher sales volume and exchange rate effects.

• Operating profit increased by ¥203.1 billion year-over-year, with EPS up 13.5% to ¥231.91.

• Share of profit from equity-method investments surged to ¥94.4 billion from ¥12.0 billion year-over-year.

• Exploration expenses surged 507.6% to ¥51.4 billion; SG&A expenses increased 35.5% to ¥99.7 billion.

• Other operating income more than doubled to ¥35.5 billion, while other operating expenses dropped 93.2% to ¥6.6 billion.

Outlook and guidance

• FY2024 net profit forecast revised up to ¥380 billion (up 5.6%), with EPS forecast at ¥306.85.

• Revenue forecast slightly reduced to ¥2,243 billion; operating profit forecast at ¥1,224 billion.

• ROIC and ROE revised upward to 7.9% and 8.8%, respectively.

• Net production volume outlook for FY2024 revised down to 631 thousand BOE/day from 645 thousand.

• Forecast assumes Brent crude oil average price of US$80.0/bbl and average exchange rate of ¥150.0/US$ for the year.