Inpex Corporation · TSE:1605
Inpex — H1 2023 Earnings Presentation
34 slides from Inpex's earnings presentation, Aug 10, 2023
Slide 1: Financial Results for the six months ended June 30, 2023
INPEX CORPORATION Financial Results for the six months ended June 30, 2023 August 10, 2023 （Content announced on August 9, 2023)
Slide 2: Agenda
Agenda １．Business Overview Takayuki Ueda Representative Director, President & CEO ２．Sustainable Growth of Corporate Value ３．Consolidated Financial Results for the six months ended June 30, 2023 Daisuke Yamada Director, Managing Executive Officer, ４．Consolidated Financial Forecasts Finance & Accounti
Slide 3: Cautionary Statement
Cautionary Statement This presentation includes forward-looking information that reflects the plans and expectations of the Company. Such forward-looking information is based on the current assumptions and judgments of the Company in light of the information currently available to it, and involves k
Slide 4: 1. Business Overview
1. Business Overview Takayuki Ueda Representative Director, President & CEO
Slide 5: Business Activities in FY2023 – Oil and Gas Business
Business Activities in FY2023 – Oil and Gas Business – First half of FY2023 Second half of FY2023 (planned) Conducted stable production operations overall. Aim to increase production capacity to 9.3 million Ichthys LNG (Australia) 65 LNG cargos shipped. tons of LNG per annum. Production Offshore Oil
Slide 6: Business Activities in FY2023 – Net Zero Businesses
Business Activities in FY2023 – 5 Net Zero Businesses – First half of FY2023 Second half of FY2023 (planned) Held a groundbreaking ceremony and commenced construction Hydrogen & Completed land reclamation for Blue Hydrogen/Ammonia of surface facilities in July. Aim to begin commissioning in March Am
Slide 7: Highlights of first half FY2023 Results
Highlights of first half FY2023 Results Net sales Net production volume per day ¥1,078.7billion 647.2 thousand （1.8% decrease YoY) （1.0% decrease YoY） Net income Production cost per barrel attributable to owners of parent US$5.7 ¥254.2 billion （$0.1 decrease YoY) （38.1% increase YoY) *Average crude
Slide 8: Forecast for the year ending December 31, 2023
Forecast for the year ending December 31, 2023 Net sales Net production volume per day ¥2,031.0 billion 625.9 thousand （12.6% decrease YoY) （1.0% increase YoY） Net income Production cost per barrel attributable to owners of parent US$6.0 ¥320.0 billion （$0.2 increase YoY) （30.6% decrease YoY) *Assum
Slide 9: Management Targets
Progress against Medium-term Business Plan 2022-2024 FY2022 2Q FY2023 FY2023 FY2024 Targets (Actual) (Actual) (Expected) Brent Oil Price (US$ per barrel) 99.04 79.91 80.0 US$60 US$70 Assump- tions Exchange rate (JPY/US$) 131.64 134.99 135.0 110 110 Net income ¥461.0 billion ¥254.2 billion ¥320.0 bil
Slide 10: FY2023 Cash Allocation Forecast of Operating Cash Flow before Exploration
FY2023 Cash Allocation Forecast of Operating Cash Flow before Exploration*1 (Billions of Yen) (FY2023 Revised Forecast) Assumption: Brent $80.0, USD/JPY 135.0 yen (FY2023 Forecast as of February 9, 2023) Assumptions: Brent $75.0, USD/JPY 125.0 yen Debt Reduction etc.*2 About 240 Debt Reduction etc.*
Slide 11: ESG Initiatives
ESG Initiatives Environment Social Governance • Received an A- score in the CDP • Published INPEX’s Supplier Code of • Disclosed the Board of Directors 2022 climate change disclosure Conduct established in 2022 Skill Matrix and continued to • Received a special award as • Engaged in social investmen
Slide 12: 2. Sustainable Growth of Corporate Value
2. Sustainable Growth of Corporate Value Takayuki Ueda Representative Director, President & CEO
Slide 13: Analysis of Current Situation
Analysis of Current Situation Based on sound financial performance On the other hand, in view of the We are steadfastly pursuing our and improved shareholder returns, current global energy situation, we energy transformation through our 5 PBR is on the rise although it is acknowledge there are growi
Slide 14: ROE, ROIC Improvement
Our Initiatives Going Forward In INPEX Vision @2022, we outlined our We will aim to sustainably grow our We will promote sustainability strategy to sustainably provide a stable corporate value by investing in sources of management and strategically allocate supply of diverse energy over the long- bu
Slide 15: Initiatives to Improve Capital Efficiency
Initiatives to Improve Capital Efficiency Following the start-up of Ichthys, INPEX is We aim to achieve a ROIC above WACC in Backed by strong cashflow through in the next phase of growing its business each of our business areas. factors such as stable production at foundations. By continuing even hi
Slide 16: Highlights of Our Growth Initiatives
Highlights of Our Growth Initiatives We will aim to gain the market’s confidence in our future business growth, positioning Ichthys & Abadi, renewable energy and CCS & hydrogen as pillars of our future business strategy. Source of earnings ⚫ Through allocation of ⚫ At Ichthys, we will leverage ⚫ Aba
Slide 17: Stronger Shareholder Returns and Deeper Dialogue with Investors
Stronger Shareholder Returns and Deeper Dialogue with Investors Based on our confidence in securing With reduction of net interest-bearing As a result, shareholder returns in FY2023 future business growth and as an action debt steadily progressing, keeping in will amount to approximately 200.0 to im
Slide 18: 3. Consolidated Financial Results for the six months ended June 30, 2023
3. Consolidated Financial Results for the six months ended June 30, 2023 Daisuke Yamada Director, Managing Executive Officer, Finance & Accounting
Slide 19: Highlights of the Consolidated Financial Results
Highlights of the Consolidated Financial Results for the six months ended June 30, 2023 2Q FY2022 2Q FY2023 Change % Change (Actual) (Actual) Average crude oil price (Brent) ($/bbl) 104.94 79.91 (25.03) (23.8%) 11.84yen 9.6% Average exchange rate (¥/$) 123.15 134.99 depreciation depreciation Net sal
Slide 20: Sales by Product
Sales by Product 2Q FY2022 2Q FY2023 Change % Change Net sales (Billions of yen) 843.2 766.3 (76.9) (9.1%) Sales volume (thousand bbl) 70,956 69,701 (1,255) (1.8%) Crude Oil Average unit price of overseas sales ($/bbl) 96.29 81.44 (14.85) (15.4%) Average unit price of domestic sales (¥/kl) 81,784 66
Slide 21: Analysis of Income (2Q FY2022 vs 2Q FY2023)
2Q FY2023 Analysis of Income (2Q FY2022 vs 2Q FY2023) (Billions of Yen) +70.1 Decrease in sales volume : (9.3) (Crude oil: (14.9), Natural gas (including LPG): +5.6 ) Decrease in unit price : (92.8) (Crude oil: (127.8), Natural gas (including LPG): +34.9 ) Exchange rate: +83.0 (Crude oil: +65.8, Nat
Slide 22: Balance Sheet
Balance Sheet Summary of financial information for (Billions of yen) December 2022 June 2023 Change % Change Ichthys downstream JV (100% basis, including the Company’s equity share Current assets 729.4 907.2 177.7 24.4% 66.245%) (Billions of yen) Tangible fixed assets 2,473.1 2,605.2 132.1 5.3% • Cu
Slide 23: Statement of Income
Statement of Income (Billions of Yen) 2Q FY2022 2Q FY2023 Change % Change Decrease in sales volume : (9.3) Net sales 1,098.4 1,078.7 (19.6) (1.8%) Decrease in unit price : (92.8) Exchange rate: +83.0 Cost of sales 447.3 439.0 (8.2) (1.8%) Others : (0.5) Gross profit 651.1 639.6 (11.4) (1.8%) Cost of
Slide 24: Statement of Cash Flows
Statement of Cash Flows (Billions of Yen) 2Q FY2022 2Q FY2023 Change Income before income taxes* 626.3 696.4 70.1 Depreciation and amortization* 140.9 123.8 (17.0) Modification loss on financial assets and others 80.0 - (80.0) Modification gain on financial assets and others - (92.7) (92.7) Recovery
Slide 25: 4. Consolidated Financial Forecasts for the year ending December 31, 2023
4. Consolidated Financial Forecasts for the year ending December 31, 2023 Daisuke Yamada Director, Managing Executive Officer, Finance & Accounting
Slide 26: Difference between Consolidated Financial Forecasts and Actual Result
Difference between Consolidated Financial Forecasts and Actual Result for the six months ended June 30, 2023 Previous Forecasts as of Actual Results Change % Change May 10, 2023 Crude oil price (Brent) (US$/bbl) 81.1 79.9 (1.2) (1.5%) Exchange rate (yen/US$) 131.2 135.0 3.8 2.9% Net sales (billions
Slide 27: Consolidated Financial Forecasts for the year ending December 31, 2023
Consolidated Financial Forecasts for the year ending December 31, 2023 ◼ Financial Forecasts for the year ending December 31, 2023 Previous Forecasts as of Revised Forecasts as of August % (billions of yen) Change May 10, 2023 10, 2023 Change 80.0 80.0 Crude oil price (Brent) (US$/bbl) 1st half:81.1
Slide 28: FY2023 Financial Forecasts Analysis of Net Income
FY2023 Financial Forecasts Analysis of Net Income (Previous forecasts vs Revised forecasts) (Billions of Yen) 400 Market factors Business Activities factors Other factors +13.2 Billions of Yen (7.1) Billions of Yen +13.9 Billions of Yen 350 20.0 6.0 16.0 3.7 (2.1) 300 (9.6) (1.2) (2.8 ) (10.0) 250 E
Slide 29: FY2023 Cash Flow Forecast
FY2023 Cash Flow* Forecast Difference b/w Previous forecasts as of Previous forecasts as of FY2023 May 10 forecast (Billions of Yen) February 9, 2023 May 10, 2023 (Revised forecast) and Revised forecast Development expenditure (Oil & Gas Business) 349.0 342.0 347.0 5.0 Development expenditure (5 Net
Slide 30: Appendix
Appendix
Slide 31: Other Income and Expenses
Other Income and Expenses (Billions of Yen) 2Q FY2022 2Q FY2023 Change % Change Other income 143.2 163.8 20.5 14.3% Interest income 16.5 44.3 27.8 168.6% Dividend income 8.3 4.0 (4.3) (51.8%) Equity in earnings of affiliates* 101.4 8.7 (92.7) (91.4%) Gain on reversal of allowance for recoverable 6.7
Slide 32: 2Q FY2023 Net Sales
2Q FY2023 Net Sales (Billions of Yen) Product 2Q FY2022 2Q FY2023 Change % Change Crude Oil 3.2 2.5 (0.7) (22.7%) Natural Gas (excluding LPG) 102.7 132.3 29.6 28.8% Japan LPG 0.0 - (0.0) (100.0%) Other 5.5 3.6 (1.9) (34.3%) Total 111.6 138.5 26.9 24.1% Crude Oil 118.6 101.3 (17.3) (14.6%) Natural Ga
Slide 33: 2Q FY2023 Sales Volume
2Q FY2023 Sales Volume Product 2Q FY2022 2Q FY2023 Change % Change Crude Oil (thousand bbl) 252 239 (13) (5.2%) Natural Gas (excluding LPG) Japan 53,384 48,338 (5,046) (9.5%) (million cf) LPG (thousand bbl) 1 - (1) (100.0%) Crude Oil (thousand bbl) 8,853 9,273 421 4.8% Australia & Natural Gas (exclu
Slide 34: 2Q FY2023 Net Production Volume
2Q FY2023 Net Production Volume Product 2Q FY2022 2Q FY2023 Change % Change Crude Oil (thousand bbl) 492 471 (22) (4.4%) Natural Gas (million cf) 18,798 17,582 (1,216) (6.5%) Japan Iodine(ton) 286 281 (5) (1.7%) Electric power generation (million kWh) 112 103 (9) (7.7%) Australia & Crude Oil (thousa