INPEX (1605) Q4 2025 earnings summary

Executive summary

• FY2025 profit attributable to owners of parent, adjusted for oil price and FX, reached a record ¥393.8 billion, despite a YoY decrease of ¥33.5 billion due to lower oil prices and yen appreciation.

• Revenue for FY2025 was ¥2,011.3 billion, down 11.2% YoY, mainly due to lower crude oil sales prices despite higher sales volume.

• Operating profit declined by 10.7% to ¥1,135.4 billion.

• Comprehensive income dropped sharply to ¥166.2 billion from ¥878.1 billion the previous year, reflecting significant negative other comprehensive income.

• Share price surged 60% over the year, outperforming the TOPIX's 22% rise, even as Brent crude oil prices fell 18%.

Financial highlights

• Profit before tax was ¥1,173.4 billion, down 9.7% YoY; EPS decreased 4.2% to ¥330.82.

• ROE dropped from 9.5% to 8.2%; ROIC from 8.4% to 7.3%.

• Net production volume increased to 638,000 boe/d in FY2025; production cost per BOE decreased to $12.4.

• Cost of sales decreased by 5.5% to ¥864.5 billion, and exploration expenses dropped by 68.6% to ¥16.7 billion.

• Cash flows from operating activities increased to ¥693.9 billion, while cash and cash equivalents at year-end were ¥168.4 billion.

Outlook and guidance

• FY2026 profit forecasted at ¥330.0 billion, down ¥63.8 billion YoY, mainly due to lower crude oil price assumptions.

• Revenue expected at ¥1,893.0 billion (down 5.9% YoY); operating profit at ¥957.0 billion (down 15.7%).

• Annual dividend per share planned at ¥108, up from ¥100 in FY2025; total shareholder return ratio to remain at 50% or more.

• CFFO projected at ¥842.0 billion, with significant growth investments in oil and gas planned.