Slide 1: Financial Results for the year ended March 31, 2019
INPEX CORPORATION Financial Results for the year ended March 31, 2019 May 14, 2019 0
Slide 2: Agenda
Agenda Corporate Overview Progress of Medium‐term Business Plan 2018‐2022 and FY 2019/12 Outlook Consolidated Financial Results for the year ended March 31, 2019 Consolidated Financial Forecasts for the year ending December 31, 2019 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 Takayuki Ueda Representative Director, President & CEO
Slide 5: FY 2019/03 Financial Results Highlights
FY 2019/03 Financial Results Highlights Financial FY 2019/03 Financial Results (April 2018 ‐ March 2019) • Net sales ¥971.3 billion (4.0% increase YoY) Results • Net income ¥96.1 billion (138.1% increase YoY) FY 2019/12 Financial Forecasts (April 2019 ‐ December 2019 : 9‐month accounting period*
Slide 6: FY 2019/03 Corporate Highlights
FY 2019/03 Corporate Highlights Sustainable Growth of Oil and Natural Gas E&P Activities Appointed as Asset Leader for Lower Zakum Oil Field Offshore Abu Dhabi, UAE (April) Completed offshore preparations for production start‐up of Ichthys LNG Project in Australia (May) Commenced production at
Slide 7: Ichthys LNG Project Progress after Production start-up
Ichthys LNG Project Progress after Production start‐up Production volume (Project 100%): LNG cargo Approximately 250 thousand BOED* 41 LNG cargoes shipped (cumulative shipments from the 1st shipment in October 2018 to the end of April 2019) Upstream gas**: Approximately 1,100 million cf/D
Slide 8: Ichthys LNG Project Exploration Blocks in Vicinity of Ichthys Field
Ichthys LNG Project Exploration Blocks in Vicinity of Ichthys Field WA‐74‐R AC/P36 WA‐343‐P WA‐79‐R INPEX 50% WA‐56‐R WA‐44‐L (Prelude FLNG) Murphy 50% Shell 67.5% (Lasseter, 2014) (Mimia, 2008) INPEX 17.5% WA‐58‐R INPEX 60% KOGAS 10.0% WA‐57‐R TOTAL 40% CPC 5.0% Darwin WA‐274‐P WA‐81‐R (Crown, 2012
Slide 9: Abadi LNG Project
Abadi LNG Project Current Progress Conducted Pre‐FEED work based on an onshore LNG development scheme with an annual LNG production capacity of 9.5 million tons from March to October 2018. Currently in dialogue with the Indonesian government in preparation for submission of the revised plan of
Slide 10: Progress on other Projects in Production / under Development
Progress on other Projects in Production / under Development Kashagan Oil Field (In Production: Kazakhstan) ACG Oil Field (In Production: Azerbaijan) ナダ Areas of Progress Areas of Progress Current production Made final investment volume: Approx. 340 decision on further thousand bbl/d develop
Slide 11: Progress on Projects under Exploration
Progress on Projects under Exploration Western Barents Sea PL1027 Onshore Block 4 ナダAbu Dhabi) (Under Exploration: Northern Norwegian Sea PL1016 (Under Exploration: Norway) PL1027 Onshore Block 4 Awarded block in January 2019 Awarded block as operator in the 2018 Abu Dhabi Participating in
Slide 12: Natural Gas Business in Japan and Renewable Energy Initiatives
Natural Gas Business in Japan and Renewable Energy Initiatives Natural Gas Business in Japan Renewable Energy Business Sarulla Geothermal IPP Project Natural Gas Sales Establishment of “Renewable Energy & Power FY 2019/03: approx. 2,170 million m3 * Business Division” in June 2018 FY 2019/12
Slide 13: Net Production (FY 2019/03)
Net Production* (FY 2019/03) 600 Production increase factors: 500 • Ichthys Project 450 424 production start‐up 6% 400 5% • Kashagan oil field (Thousand BOED) production ramp‐up 300 57% 54% Production decrease factor: • Expiration of Offshore 200 Mahakam Block PSC 10% 12% 100 20% 22% 0 7% 7% Mar. 18
Slide 14: Production Cost, Proved + Probable Reserves and Reserve Indices
Production Cost, Proved + Probable Reserves* and Reserve Indices 6,000 Reserves to 5,300 5,212 production ratio**** Production Cost per BOE (Excl. Royalty) 4,970 5,000 4,693 7.0 1,443 1,202 4,044 5.9 5.9 4,000 1,705 1,389 6.0 5.7 US$/BOE Million BOE 1,610 3,000 5.0 33.7 years 2,000 3,857 4,010 25.9
Slide 15: Progress of Medium-term Business Plan 2018-2022 and FY 2019/12 Outlook
Progress of Medium‐term Business Plan 2018‐2022 and FY 2019/12 Outlook Takayuki Ueda Representative Director, President & CEO
Slide 16: Progress of Medium-term Business Plan 2018-2022 and FY 2019/12 Outlook①
Progress of Medium‐term Business Plan 2018‐2022 and FY 2019/12 Outlook① Made steady progress toward achieving targets set in the medium‐term business plan by reaching important milestones, such as production start‐up and shipment of Ichthys LNG Project in FY 2019/03 Aiming for steady achievement
Slide 17: Progress of Medium-term Business Plan 2018-2022 and FY 2019/12 Outlook②
Progress of Medium‐term Business Plan 2018‐2022 and FY 2019/12 Outlook② In FY 2019/03, net sales and net income increased year‐on‐year driven by higher oil prices and contribution from the Ichthys LNG Project, among other factors. The company will aim for steady growth towards achieving the quanti
Slide 18: Financial Results for the year ended March 31, 2019
Financial Results for the year ended March 31, 2019 Masahiro Murayama Director, Senior Managing Executive Officer Senior Vice President, Finance & Accounting
Slide 19: Highlights of the Consolidated Financial Results
Highlights of the Consolidated Financial Results for the year ended March 31, 2019 Apr. ‘17 ‐ Mar. ‘18 Apr. ‘18 ‐ Mar. ‘19 Change %Change Net sales (Billions of yen) 933.7 971.3 37.6 4.0% Crude oil sales 710.2 782.6 72.4 10.2% Natural gas sales (including LPG) 208.1 170.7 (37.3) (18.0%) Others 15.3
Slide 20: Crude Oil Sales
Crude Oil Sales Apr. ‘17 ‐ Mar. ’18 Apr. ‘18 ‐ Mar. ’19 Change %Change Net sales (Billions of yen) 710.2 782.6 72.4 10.2% Sales volume (thousand bbl) 112,882 100,503 (12,379) (11.0%) Average unit price of overseas 56.30 70.30 14.00 24.9% production ($/bbl) Average unit price of domestic 42,143 51,66
Slide 21: Natural Gas Sales (excluding LPG)
Natural Gas Sales (excluding LPG) Apr. ‘17 ‐ Mar. ‘18 Apr. ‘18 ‐ Mar. ’19 Change %Change Net sales (Billions of yen) 202.0 169.2 (32.8) (16.3%) Sales volume (million cf) 264,816 232,851 (31,965) (12.1%) Average unit price of overseas 5.04 3.18 (1.86) (36.9%) production ($/thousand cf) Average unit p
Slide 22: Statement of Income
Statement of Income Decrease in sales volume : (99.3) (Billions of Yen) Apr. ‘17‐ Mar. ’18 Apr. ‘18 ‐ Mar. ’19 Change %Change Increase in unit price : +139.1 Exchange rate Net sales 933.7 971.3 37.6 4.0% (Appreciation of yen) : (4.7) Others : +2.6 Cost of sales 498.0 413.3 (84.7) (17.0%) Cost of sal
Slide 23: Analysis of Net Income Increase
Analysis of Net Income Increase (Billions of Yen) (億円) 250 54.7 200 34.2 84.7 150 4.8 (87.8) (29.5) 100 96.1 139.1 2.6 (43.1) (4.7) 50 40.3 0 ‐50 (99.3) ‐100 Net income Decrease Increase in Exchange rate Others Decrease in Increase in Decrease Other Extraordinary Increase in Net income Net income at
Slide 24: Balance Sheet
Balance Sheet (Billions of yen) Mar. ’18 Mar. ’19 Change %Change Current assets 466.3 457.7 (8.6) (1.9%) Tangible fixed assets 2,044.6 2,278.9 234.3 11.5% Intangible assets 541.5 520.2 (21.2) (3.9%) Summary of financial information Recoverable accounts under production sharing 589.0 568.0 (21.0) (3.
Slide 25: Statement of Cash Flows
Statement of Cash Flows (Billions of Yen) Apr. ‘17 ‐ Mar. ’18 Apr. ‘18 ‐ Mar. ‘19 Change %Change Income before income taxes 307.2 494.0 186.7 60.8% Depreciation and amortization 92.8 106.8 14.0 15.2% Impairment loss 79.9 25.2 (54.7) (68.4%) Recovery of recoverable accounts under production sharing (
Slide 26: Consolidated Financial Forecasts for the year ending December 31, 2019
Consolidated Financial Forecasts for the year ending December 31, 2019 (nine‐month accounting period) Masahiro Murayama Director, Senior Managing Executive Officer Senior Vice President, Finance & Accounting
Slide 27: Consolidated Financial Forecasts for the year ending December 31, 2019
Consolidated Financial Forecasts for the year ending December 31, 2019 (nine‐month accounting period) 1st Half (Apr. – Sep. ‘19) 2nd Half (Oct. – Dec. ‘19) Full year Brent oil price ($/bbl) 65.0 65.0 65.0 Average exchange rate (¥/$) 110.0 110.0 110.0 Mar. ‘19 Mar. ‘19 Dec. ‘19 % (Actual) (Adjusted a
Slide 28: Sales and Investment Plan for the year ending December 31, 2019
Sales and Investment Plan for the year ending December 31, 2019 (nine‐month accounting period) Mar. ’19 Mar. ‘19 Dec. ’19 % (Actual) * (Forecasts ) Change (Adjusted actual ) Change Crude oil (thousand bbl)1 100,503 85,138 102,695 17,557 20.6% Sales Volume Natural gas (million cf)2 232,851 157,925 36
Slide 29: 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 December 31, 2019 (nine‐month accounting period) (Note 1) (Billions of yen) At the Beginning of the 1Q : +3.8 (‐3.8) Brent Cr