INPEX (1605) Q4 2024 earnings summary

Executive summary

• Achieved second highest profit on record in FY2024, with profit attributable to owners of parent at ¥427.3 billion, up 32.8% year-over-year.

• Revenue rose 4.7% year-over-year to ¥2,265.8 billion, driven by yen depreciation and higher crude oil sales volume.

• Highest historical dividend and share buyback, with annual dividend at ¥86 per share and ¥130 billion in buybacks.

• Comprehensive income attributable to owners of parent grew to ¥842.9 billion, reflecting strong operational and financial performance.

• Zero major accidents reported; production issue at Ichthys LNG resolved and operations restored.

Financial highlights

• Operating profit increased 14.1% to ¥1,271.7 billion.

• EPS grew 38.9% to ¥345.31; ROE improved to 9.5% from 8.0% year-over-year.

• Net debt/equity ratio improved to 0.33 from 0.39.

• Free cash flow for FY2024 was ¥525.2 billion.

• Total assets reached ¥7,380.9 billion, up ¥641.3 billion from the previous year.

Outlook and guidance

• FY2025 forecasts: revenue to decline 6.5% to ¥2,119.0 billion, profit attributable to owners of parent to decrease 22.8% to ¥330.0 billion.

• Operating profit expected at ¥1,106.0 billion, down 13.0% year-over-year.

• Progressive dividends starting at ¥90 per share planned for FY2025; additional returns considered based on business environment.

• Lower crude oil price assumptions and planned maintenance at Ichthys project are expected to impact results.

• Sensitivity: ¥5.4 billion impact on profit for each $1/bbl Brent price change at start of FY2025.