Slide 1: Financial Results for the year ended March 31, 2017
INPEX CORPORATION Financial Results for the year ended March 31, 2017 May 15, 2017
Slide 2: Agenda
Agenda Corporate Overview Outlook Financial Results for the year ended March 31, 2017 Consolidated Financial Forecasts for the year ending March 31, 2018 1
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: Corporate Overview
Corporate Overview Toshiaki Kitamura Representative Director, President & CEO
Slide 5: FY 2017/03 Financial Results Presentation Highlights
FY 2017/03 Financial Results Presentation Highlights - Financial Results (FY2017/03) • Net sales ¥874.4 billion (13.4% decrease YoY) ■ Financial Results • Net income ¥46.1 billion (175.2% increase YoY) and Forecasts - Financial Forecasts (FY2018/03) • Net sales ¥844.0 billion (Forecast) • Net income
Slide 6: FY 2017/03 Corporate Highlights
FY 2017/03 Corporate Highlights Continuous Enhancement of E&P Activities Conducted exploratory drilling offshore Shimane and Yamaguchi prefectures, Japan (June - October) Reached final investment decision to develop Tangguh LNG Expansion Project, Indonesia (July) Awarded exploration license fo
Slide 7: Ichthys LNG Project Overview
Ichthys LNG Project Overview Current progress： Commissioning work in progress on the main facilities Production to start up sequentially during the current fiscal year, product shipments following thereafter Production Plan： Production period: approx. 40 years⇒ The project will maintain pe
Slide 8: Ichthys LNG Project Offshore facilities / Production wells ①
Ichthys LNG Project Offshore facilities / Production wells ① Key milestones (2016~) Milestone Achieved Installation of subsea flow lines completed Installation of subsea production facilities completed CPF sail away FPSO sail away CPF / FPSO mooring Production start-up ※CPF: Central Processing
Slide 9: Ichthys LNG Project Offshore facilities / Productions wells ②
Ichthys LNG Project Offshore facilities / Productions wells ② Naming ceremonies for CPF / FPSO Subsea installation (January 2017) (February 2017) Installation of subsea production facilities Naming ceremonies for CPF and FPSO completed in January 2017 (Production held in February 2017 manifold,
Slide 10: Ichthys LNG Project Onshore facilities ①
Ichthys LNG Project Onshore facilities ① Key Milestones (2016~) Milestone Achieved Construction of product loading jetty completed Construction and delivery of all 230 modules completed Pipelay of gas export pipeline Construction of tanks (onshore part) completed / Ready to (April 2017) delive
Slide 11: Ichthys LNG Project Onshore facilities ②
Ichthys LNG Project Onshore facilities ② Operations Complex & Utilities Annex Ground Flares Utilities Inlet Facilities Tank Flares Power Plant LPG Tanks 1st Train 2nd Train LNG Tanks To product loading Jetty To Module Offloading Facility Condensate Tanks Onshore Facilities (April 2017) Constructio
Slide 12: Ichthys LNG Project Exploration Blocks in Vicinity of Ichthys Field
Ichthys LNG Project Exploration Blocks in Vicinity of Ichthys Field Participating interests held in 14 exploration blocks in vicinity of Ichthys Field. Gas structures including Crown, Lasseter, Mimia and Burnside discovered The discovered gas structures extend across at least 6 of the 14 explora
Slide 13: Abadi LNG Project
Abadi LNG Project Omiya Kashiwa Minamikoshigaya North Matsudo Fussa Ichikawa Ikebukuro Ueno Mitaka Nakano Tachikawa Tsudanuma Tokyo Shinjuku Hachioji Shibuya West South Noborito Chiba South MachidaWest Kawasaki Yokohama 0 10km Abadi Gas Field (image) Location of Masela Block INPEX aims for an earl
Slide 14: Topics for FY 2017/03
Topics for FY 2017/03 Progress of the existing projects (Results in the second half of FY 2017/03) ナダ The United Mexican States: Russian Federation: Block 3, Perdido Fold Belt, Zapadno-Yaraktinsky Block Mexican Gulf of Mexico Entering development and Awarded exploration license production phase
Slide 15: Natural Gas Business in Japan and Initiatives on Renewable Energy
Natural Gas Business in Japan and Initiatives on Renewable Energy Domestic natural gas business Geothermal power generation business Sarulla Geothermal IPP Project Toyama Line completed in June 2016. Commenced Indonesia: Sarulla Geothermal supply of natural gas to Nissan Chemical Industries, Ind
Slide 16: Net Production (FY 2017/03)
Net Production* (FY 2017/03) 600 514 521 500 4% 5% 400 (Thousand BOED) 48% 52% 300 6% 200 6% 100 36% 31% 0 5% 5% Mar. 16 Mar. 17 Japan Asia/Oceania Eurasia Middle East/Africa Americas * The production volume of crude oil and natural gas under the production sharing contracts entered into by the INPE
Slide 17: Production Cost, Proved + Probable Reserves and Reserve Indices
Production Cost, Proved + Probable Reserves* and Reserve Indices 6,000 Reserves to Production Cost per BOE (Excl. Royalty)) production ratio**** 4,970 5,000 15.0 4,477 4,693 11.2 4,095 12.0 4,044 4,000 1,705 1,389 US$/BOE 9.0 7.8 Million BOE 6.1 1,945 6.0 1,907 1,610 3,000 3.0 24.7 0.0 2,000 years M
Slide 18: Outlook
Outlook Toshiaki Kitamura Representative Director, President & CEO
Slide 19: Actual and Planned Investments
Actual and Planned Investments Actual and planned investments in Yen Actual and planned investments in US$ (Billions of Yen) (Millions of US$) (Billions of Yen) (Millions of US$ ) 1,200 12,000 1,100 1,029.7 11,000 1,000 962.9 971.2 10,000 9,612 9,381 900 9,000 7,877 8,084 800 8,000 700 653.1 7,000 6
Slide 20: Net Production Volume Projection
Net Production* Volume Projection Target for the 2020s Following the Ichthys start-up 1 million BOED 1,000 etc., the total production volume from existing projects will reach approximately 600 to 700 900 thousand BOED 800 600 - 700 700 577 600 Thousand BOED 521 507 500 5% 400 52% 300 200 6% 100 31%
Slide 21: Key initiatives from FY2013 based on Medium- to Long-Term Vision
Key initiatives from FY2013 based on Medium- to Long-Term Vision and Future Outlook Kazakhstan Kazakhstan ・Commenced oil production from Kashagan Oil Field United Arab Emirates ・Acquired participating interest in ADCO Onshore Concession ・Extended Concession Agreement for Upper Zakum Oil Field US Gul
Slide 22: Financial Results for the year ended March 31, 2017
Financial Results for the year ended March 31, 2017 Masahiro Murayama Director, Senior Managing Executive Officer Senior Vice President, Finance & Accounting
Slide 23: Highlights of the Consolidated Financial Results
Highlights of the Consolidated Financial Results for the year ended March 31, 2017 Apr. ‘15 - Mar. ‘16 Apr. ‘16 - Mar. ‘17 Change %Change Net sales (Billions of yen) 1,009.5 874.4 (135.1) (13.4%) Crude oil sales 679.2 617.1 (62.0) (9.1%) Natural gas sales (including LPG) 316.7 242.5 (74.1) (23.4%) O
Slide 24: Crude Oil Sales
Crude Oil Sales Apr. ‘15 - Mar. ’16 Apr. ‘16 - Mar. ’17 Change %Change Net sales (Billions of yen) 679.2 617.1 (62.0) (9.1%) Sales volume (thousand bbl) 117,227 122,207 4,980 4.2% Average unit price of overseas 47.95 46.41 (1.54) (3.2%) production ($/bbl) Average unit price of domestic production (¥
Slide 25: Natural Gas Sales (excluding LPG)
Natural Gas Sales (excluding LPG) Apr. ‘15 - Mar. ‘16 Apr. ‘16 - Mar. ‘17 Change %Change Net sales (Billions of yen) 306.2 235.7 (70.4) (23.0%) Sales volume (million cf) 337,216 342,994 5,778 1.7% Average unit price of overseas 6.58 5.19 (1.39) (21.1%) production ($/thousand cf) Average unit price o
Slide 26: Statement of Income
Statement of Income (Billions of Yen) Apr. ‘15 - Mar. ’16 Apr. ‘16 - Mar. ’17 Change %Change Increase in sales volume : +34.8 Decrease in unit price : (85.9) Exchange rate Net sales 1,009.5 874.4 (135.1) (13.4%) (Appreciation of yen) : (85.1) Others : 1.0 Cost of sales 526.7 453.8 (72.9) (13.8%) Gro
Slide 27: Other Income/Expenses
Other Income/Expenses (Billions of Yen) Apr. ‘15 - Mar. ‘16 Apr. ‘16 - Mar. ‘17 Change %Change Other income 69.9 39.0 (30.8) (44.1%) Interest income 10.7 10.4 (0.2) (2.7%) Dividend income 10.8 2.8 (8.0) (74.1%) Gain on sales of marketable securities 25.9 - (25.9) - Gain on sales of investment securi
Slide 28: Analysis of Net Income Increase
Analysis of Net Income Increase (Billions of Yen) (億円) 150 83.0 100 34.8 46.1 50 (52.2) 16.7 39.5 0 9.1 1.8 10.4 72.9 -50 (85.9) -100 1.0 (85.1) -150 Net income Increase Decrease in Exchange rate Others Decrease in Decrease in Decrease Other Extraordinary Decrease in Net income Net income attributab
Slide 29: Balance Sheet
Balance Sheet (Billions of yen) Mar. ’16 Mar. ’17 Change %Change Available fund (Billions of yen)* : Current assets 984.3 942.9 (41.3) (4.2%) 663.0 Breakdown Tangible fixed assets 1,752.6 1,928.5 175.9 10.0% • Cash and deposits : 652.6 • Available investment securities : Intangible assets 541.4 521.
Slide 30: Statement of Cash Flows
Statement of Cash Flows (Billions of Yen) Apr. ‘15 - Mar. ‘16 Apr. ‘16 - Mar. ‘17 Change %Change Income before income taxes 328.8 327.5 (1.3) (0.4%) Depreciation and amortization 86.7 91.1 4.3 5.0% Recovery of recoverable accounts under production sharing (capital expenditures) 64.1 79.8 15.6 24.4%
Slide 31: Financial Indices
Financial Indices Net Debt/Total Capital Employed (Net)* Equity Ratio** Mar.'16 Mar.'17 0.9% (8.1%) 67.1% 68.3% Mar.'16 Mar.'17 * Net Debt/Total Capital Employed (Net) = (Interest-bearing debt - Cash D/E Ratio*** and deposits - Public and corporate bonds and other debt securities (with determinable
Slide 32: Consolidated Financial Forecasts for the year ending March 31, 2018
Consolidated Financial Forecasts for the year ending March 31, 2018 Masahiro Murayama Director, Senior Managing Executive Officer Senior Vice President, Finance & Accounting
Slide 33: Consolidated Financial Forecasts for the year ending March 31, 2018
Consolidated Financial Forecasts for the year ending March 31, 2018 1st Half 2nd Half Full year Brent oil price ($/bbl) 50.0 50.0 50.0 Average exchange rate (¥/$) 110.0 110.0 110.0 Mar. ‘17 Mar. ‘18 Full Year (Actual) (Forecasts) Change % Change Net Sales (Billions of yen) 874.4 844.0 (30.4) (3.5%)
Slide 34: Sales and Investment Plan for the year ending March 31, 2018
Sales and Investment Plan for the year ending March 31, 2018 Mar. ’17 Mar. ‘18 (Actual) (Forecasts ) Change % Change Crude oil (thousand bbl)1 122,207 119,393 (2,814) (2.3%) Sales Volume Natural gas (million cf)2 342,994 266,609 (76,385) (22.3%) Overseas 271,699 187,643 (84,057) (30.9%) 71,295 78,96
Slide 35: Net Income Sensitivities
Net Income Sensitivities Sensitivities of crude oil price and foreign exchange fluctuation on consolidated net income attributable to owners of parent for the year ending March 31, 2018 (Note 1) (Billions of yen) Brent Crude Oil Price; $1/bbl increase (decrease) (Note 2) +2.4 (-2.4) Exchange R