Inpex Corporation · TSE:1605
Inpex — H1 2021 Earnings Presentation
29 slides from Inpex's earnings presentation, Aug 11, 2021
Slide 1: Financial Results for the six months ended June 30, 2021
INPEX CORPORATION Financial Results for the six months ended June 30, 2021 August 11, 2021
Slide 2: Agenda
Agenda Corporate Overview Consolidated Financial Results for the six months ended June 30, 2021 Consolidated Financial Forecasts for the year ending December 31, 2021 Copyright © 2021 INPEX CORPORATION. All rights reserved. 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: FY2021/12 Second Quarter Financial Results Highlights
FY2021/12 Second Quarter Financial Results Highlights Net Sales ¥498.3 billion (27.2% increase YoY) FY2021 Q2 Net Income ¥51.9 billion (¥172.7 billion increase YoY) Financial Results Net Production 528 thousand BOED (9.3% decrease YoY) Net Sales: ¥1,134.0 billion (47.1% increase YoY) FY2021 Full Y
Slide 6: Upstream Project Highlights (1)
Upstream Project Highlights (1) Australia Ichthys LNG Project (In production) Maintenance Plan Shutdown maintenance completed in May ‐ June 2021 Production Status / Cargoes Shipped Stable operations have been maintained while less cargoes were shipped during shutdown maintenance. 47 LNG ca
Slide 7: Upstream Project Highlights (2)
Upstream Project Highlights (2) Indonesia Abu Dhabi Abadi LNG Project (In preparation for development) Abu Dhabi Onshore Concession (In production) Production Capacity Areas of Progress Total output of natural gas (LNG equivalent): 10.5 million tons per Production capacity reached 2 million
Slide 8: Upstream Project Highlights (3)
Upstream Project Highlights (3) Japan Americas Natural Gas Business in Japan (In production) Tight Oil Project (Eagle Ford shale play) (In production) Natural Gas Sales Volume (1m3 =41.8605MJ) Areas of Progress FY2020/12: approx. 2.07 billion m3 Oil Production: 3 thousand bbl/d (average for
Slide 9: Net Production Volume
Net Production Volume Net production for the first half decreased reflecting the planned shutdown maintenance of the Ichthys LNG Project. 600 582 3% 528 500 3% (Thousand BOED) 42% 400 40% Americas Middle East/Africa 300 10% 10% Eurasia 200 Asia/Oceania 40% 42% Japan 100 0 4% 5% FY2020 Q2 FY2021 Q2
Slide 10: Initiatives Towards a Net Zero Carbon Society (1)
Initiatives Towards a Net Zero Carbon Society (1) Our climate change response goals Five Business Pillars towards a net zero carbon society Reduce Scope3 CO2 emissions 2050 2030 from upstream Reduction operations (CCUS) NET ZERO in 30% OR MORE work together with all Enhance and absolute reduction of
Slide 11: Initiatives Towards a Net Zero Carbon Society (2)
Initiatives Towards a Net Zero Carbon Society (2) Develop a hydrogen business Integrated hydrogen business test project in Kashiwazaki, Niigata, Japan INPEX plans to demonstrate the feasibility of a business model utilizing natural gas from INPEX assets to produce carbon‐free hydrogen through a na
Slide 12: Initiatives Towards a Net Zero Carbon Society (3)
Initiatives Towards a Net Zero Carbon Society (3) Promote carbon recycling and cultivate new business opportunities Methanation In this NEDO2‐sanctioned project to develop technologies that enable the effective utilization of CO2, INPEX established a testing facility producing methane from CO2 and
Slide 13: Progress against Medium-term Business Plan 2018-2022 and Outlook (1)
Progress against Medium‐term Business Plan 2018‐2022 and Outlook for FY2021/12 (1) First, Second and Third Years (Results) Fourth Year (Outlook) FY2019/3, FY2019/12 & FY2020/12 FY2021/12 Ichthys LNG Project: Achieved rapid and Ichthys LNG Project: Continue stable production and steady ramp‐up; c
Slide 14: Progress against Medium-term Business Plan 2018-2022 and Outlook (2)
Progress against Medium‐term Business Plan 2018‐2022 and Outlook for FY2021/12 (2) FY 2019/12 FY 2019/3 FY 2020/12 FY 2021/12 FY 2022/12* Results Results Results Outlook Targets (9 months) Assumptions Brent crude oil price 70.86 64.27 43.21 65.1 60.00 (US$/ barrel) Exchange rate 110.93 108.66 106.77
Slide 15: Consolidated Financial Results
Consolidated Financial Results for the year ended December 31, 2021 Daisuke Yamada Director, Managing Executive Officer, Finance & Accounting
Slide 16: Highlights of the Consolidated Financial Results
Highlights of the Consolidated Financial Results for the six months ended June 30, 2021 2Q FY2020 2Q FY2021 Change % Change (January ‐ June ’20) (January ‐ June ’21) Net sales (Billions of yen) 391.6 498.3 106.7 27.2% Crude oil sales 246.3 375.3 129.0 52.4% Natural gas sales (including LPG) 138.2 11
Slide 17: Crude Oil Sales
Crude Oil Sales 2Q FY2020 2Q FY2021 Change % Change (January ‐ June ’20) (January ‐ June ’21) Net sales (Billions of yen) 246.3 375.3 129.0 52.4% Sales volume (thousand bbl) 60,894 55,454 (5,440) (8.9%) Average unit sales price of 37.27 62.71 25.44 68.3% overseas production ($/bbl) Average unit sale
Slide 18: Natural Gas Sales (excluding LPG)
Natural Gas Sales (excluding LPG) 2Q FY2020 2Q FY2021 Change % Change (January ‐ June ’20) (January ‐ June ’21) Net sales (Billions of yen) 136.7 113.3 (23.4) (17.2%) Sales volume (million cf) 222,856 203,293 (19,562) (8.8%) Average unit sales price of 4.17 3.84 (0.33) (7.9%) overseas production ($/
Slide 19: 2Q FY2021 Analysis of Net Sales Increase
2Q FY2021 Analysis of Net Sales Increase (Billions of Yen) Crude Oil +152.7 Natural Gas (including LPG) (16.8) Crude Oil (1.6) Natural Gas (including LPG) (0.4) 498.3 391.6 Crude Oil (22.0) Natural Gas (including LPG) (6.1) Copyright © 2021 INPEX CORPORATION. All rights reserved. 18
Slide 20: Statement of Income
Statement of Income 2Q FY2020 2Q FY2021 Change % Change (January ‐ June ’20) (January ‐ June ’21) (Billions of Yen) Decrease in sales volume : (28.1) Net sales 391.6 498.3 106.7 27.2% Increase in unit sales price : +135.9 Exchange rate: (2.1) Cost of sales 226.0 233.7 7.7 3.4% Others : +1.1 Gross pr
Slide 21: Analysis of Income before One-off Profit (Loss) Increase
2Q FY2021 Analysis of Income before One‐off Profit (Loss) Increase (Billions of Yen) * Income before one‐off profit (loss) = Net income (loss) attributable to owners of parent − one‐off profit (loss) +3.7 Copyright © 2021 INPEX CORPORATION. All rights reserved. 20
Slide 22: Analysis of Impact of One-off Profit (Loss)
2Q FY2021 Analysis of Impact of One‐off Profit (Loss) (Billions of Yen) Prelude FLNG Project (130.8) Eagle Ford (33.6) Lucious Oil Field (18.9) Bayu‐Undan Gas‐Condensate Field (8.9) +11.8 (157.2) Copyright © 2021 INPEX CORPORATION. All rights reserved. 21
Slide 23: Balance Sheet
Balance Sheet December June 2021 Change % Change Summary of financial information for (Billions of yen) 2020 Ichthys downstream JV (100% basis ‐ the Company equity share is 66.245%) Current assets 387.0 423.8 36.7 9.5% (Billions of yen) Tangible fixed assets • Current assets : 128.0 2,069.7 2,185.0
Slide 24: Statement of Cash Flows
Statement of Cash Flows 2Q FY2020 2Q FY2021 (January ‐ June ’20) (January ‐ June ’21) (Billions of Yen) Income (loss) before income taxes (43.1) 219.8 Depreciation and amortization 88.8 77.2 Impairment loss 192.4 ‐ Recovery of recoverable accounts under production sharing (capital 14.8 28.2 expendit
Slide 25: Consolidated Financial Forecasts for the year ending December 31, 2021
Consolidated Financial Forecasts for the year ending December 31, 2021 Daisuke Yamada Director, Managing Executive Officer, Finance & Accounting
Slide 26: Differences between Forecasts and Actual Results for the six months
Differences between Consolidated Financial Forecasts and Actual Results for the six months ended June 30, 2021 Assumptions 1st half (May 13, 2021) (Previous Forecasts) Crude oil price (Brent) (US$/bbl) 60.7 Exchange rate (yen/US$) 107.1 1st half (August 10, 2021) (Actual Results) Crude oil price (
Slide 27: Revisions of Financial Forecasts for the year ending December 31, 2021
Revisions of Financial Forecasts for the year ending December 31, 2021 Assumptions (May 13, 2021) 1st half (Jan‐Jun) 2nd half (Jul‐Dec) Full year Crude oil price (Brent) (US$/bbl) 60.7 60.0 60.3 Exchange rate (yen/US$) 107.1 108.0 107.5 (August 10, 2021) 1st half (Jan‐Jun) 2nd half (Jul‐Dec) Full
Slide 28: FY2021 Financial Forecasts Analysis of Net Income
FY2021 Financial Forecasts Analysis of Net Income (Billions of Yen) Exchange Rate (yen/US$) * Income before one‐off profit (loss) May 13 Forecast 107.5 = Net income attributable to owners of parent − one‐off profit (loss) 200 Aug 10 Forecast 108.9 2.8 0.9 180 Crude Oil Price (Brent) （US$/bbl） 32.0 M
Slide 29: FY2021 Cash Flow Forecast
FY2021 Cash Flow Forecast * Approximately ¥320 billion in free cash flow* forecasted for FY2021. (Billions of Yen) Approx. 560 Approx. 240 Approx. 320 * Including the Ichthys Downstream IJV (Incorporated Joint Venture) Copyright © 2021 INPEX CORPORATION. All rights reserved. 28