Inpex Corporation · TSE:1605
Inpex — H1 FY2016/03 Earnings Presentation
28 slides from Inpex's earnings presentation, Nov 11, 2015
Slide 1: Financial Results for the Six Months ended September 30, 2015
INPEX CORPORATION Financial Results for the Six Months ended September 30, 2015 November 11, 2015
Slide 2: Agenda
Agenda 1. Corporate Overview Toshiaki Kitamura Representative Director, President & CEO 2. Financial Results for the six months ended September 30, 2015 Masahiro Murayama Director, Managing Executive Officer Senior Vice President of Finance & Accounting Division 1
Slide 3: Cautionary Statement
Cautionary Statement This presentation includes forward‐looking information that reflects the plan 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 kn
Slide 4: Corporate Overview
Corporate Overview Toshiaki Kitamura Representative Director, President & CEO
Slide 5: First-Half FY 2016/03 Corporate Highlights (1/2)
First‐Half FY 2016/03 Corporate Highlights (1/2) ■ Half‐year Results ‐ Net sales ¥567.0 billion (14.5% decrease YoY) (Apr.2015 ‐Sep.2015) ‐ Net income ¥45.4 billion (48.7% decrease YoY) ■ Net Production ‐ 503 thousand BOED (28% increase YoY) ‐ Production start: End December 2016 ⇒3rd quarter of 2017
Slide 6: First-Half FY 2016/03 Corporate Highlights (2/2)
First‐Half FY 2016/03 Corporate Highlights (2/2) Continuous Enhancement of E&P Activities Existing projects Discovered oil in Deepwater Block R, Offshore East Malaysia (April) Acquired participating interest in ADCO Onshore Concession (April) Re‐start of oil production in Van Gogh Oil Field, W
Slide 7: Ichthys LNG Project (1/4)
Ichthys LNG Project (1/4) Updates Production Schedule and Raises LNG Production Capacity Production start: End December 2016 → 3rd quarter of 2017 CAPEX : Approx. 10% increase LNG production capacity: Approx.8.4 million t/y →Approx. 8.9 million t/y (approx.6% increase) Construction of LNG plan
Slide 8: Ichthys LNG Project (2/4)
Ichthys LNG Project (2/4) LNG storage tank (July/2015) FPSO Module Lifting (Sep./2015) (April/2015, Darwin) Proved reserves: Approx. 970 million BOE (Based on INPEX’s participating interest of 62.245%) Production volume: ‐ Approx. 8.9 million t/y of LNG ‐Approx. 1.6 million t/y of LPG ‐Approx. 1
Slide 9: Ichthys LNG Project (3/4) Offshore Facilities
Ichthys LNG Project (3/4) Offshore Facilities Major works for Offshore Facilities done since FID and plans up to the third quarter of 2017 2012 2013 2014 2015 2016 2017 (Jan.‐Sep.) Detailed engineering / procurement Installation of GEP Construction of CPF and FPSO / sailing away to the site Installa
Slide 10: Ichthys LNG Project (4/4) Onshore Facilities
Ichthys LNG Project (4/4) Onshore Facilities Major works for Onshore Facilities done since FID and plans up to the third quarter of 2017 2012 2013 2014 2015 2016 2017 (Jan.‐Sep.) Detailed engineering / procurement Fabrication of LNG plant modules Construction of storage tanks, power plant and produc
Slide 11: Abadi LNG Project
Abadi LNG Project Submitted to the Indonesian government a revised Plan of Development (Revised POD) in September 2015 Revised POD envisions FLNG plant with 7.5 million t/y Revised POD is under discussion with the Indonesian government To propel the project forward to launch FEED works for t
Slide 12: First-Half FY 2016/03 Topics
First‐Half FY 2016/03 Topics Progress of the existing projects (Results in the 1st. half of FY 2016/03) ナダ Abu Dhabi : Acquired Japan : Discovered oil in participating interest in ADCO Minami‐Kuwayama Oil Onshore Concession in April Field in Niigata 2015 Prefecture, in June 2015 INPEX share : 5%
Slide 13: Net Production (April – September 2015)
Net Production* (April – September 2015) 600 503 500 5% (Thousand BOED) 400 395 5% 48% 300 42% Main increase factor ・ Acquisition of participating interest in 6% 200 6% the ADCO Onshore Concession in Abu Dhabi. 36% 100 41% 6% 4% 0 Sep. 14 Sep. 15 Japan Asia/Oceania Eurasia Middle East/Africa America
Slide 14: Responding to Lower Oil Prices (1/2)
Responding to Lower Oil Prices (1/2) FY2015 investments versus FY2016 & FY2017 investment forecast 12,000 11,250 11,000 10,000 9,381 9,030 8,850 9,000 (USD Millions) 8,000 7,000 6,000 9,900 5,000 8,464 8,240 8,090 4,000 3,000 2,000 1,000 1,050 662 470 370 0 300 255 320 390 FY2015 2015年3月期 FY2015 201
Slide 15: Responding to Lower Oil Prices (2/2)
Responding to Lower Oil Prices (2/2) Production cost per Barrel of Oil Equivalent* Production cost per Barrel reduced as a result of improving 12.0 operational efficiency as well as investment cut/postponement 11.2 20%‐30% reduction 10.0 from FY 2015 Substantially increasing production volume an
Slide 16: Financial Results for the six months ended September 30, 2015
Financial Results for the six months ended September 30, 2015 Masahiro Murayama Director, Managing Executive Officer Senior Vice President of Finance & Accounting Division
Slide 17: Highlights of the Consolidated Financial Results
Highlights of the Consolidated Financial Results for the six months ended September 30, 2015 Apr.‐Sep. ’14 Apr.‐Sep. ‘15 Change %Change Net sales (Billions of yen) 663.1 567.0 (96.1) (14.5%) Crude oil sales 437.6 396.8 (40.7) (9.3%) Natural gas sales (including LPG) 216.7 163.3 (53.4) (24.7%) Others
Slide 18: Crude Oil Sales
Crude Oil Sales Apr.‐Sep. ‘14 Apr.‐Sep. ‘15 Change %Change Net sales (Billions of yen) 437.6 396.8 (40.7) (9.3%) Sales volume (thousand bbl) 40,048 57,805 17,757 44.3% Average unit price of overseas 105.75 56.52 (49.23) (46.6%) production ($/bbl) Average unit price of domestic production (¥/kl) 71,3
Slide 19: Natural Gas Sales (excluding LPG)
Natural Gas Sales (excluding LPG) Apr.‐Sep. ‘14 Apr.‐Sep. ‘15 Change %Change Net sales (Billions of yen) 205.8 157.7 (48.1) (23.4%) Sales volume (million cf) 152,056 160,634 8,577 5.6% Average unit price of overseas 12.78 7.23 (5.55) (43.4%) production ($/thousand cf) Average unit price of domestic
Slide 20: Analysis of Net Sales Decrease
Analysis of Net Sales Decrease (Billions of Yen) 1,000 Crude Oil (293.9) Natural Gas (including LPG) (81.6) 900 202.7 Crude Oil +59.9 800 Natural Gas (including LPG) +18.6 700 600 78.6 500 (1.8) (375.5) 400 Crude Oil +193.2 663.1 Natural Gas (including LPG) +9.4 300 567.0 200 100 0 Net sales Increas
Slide 21: Statement of Income
Statement of Income (Billions of Yen) Apr.‐Sep. ’14 Apr.‐Sep. ’15 Change %Change Increase in sales volume : +202.7 Decrease in unit price : (375.5) Exchange rate Net sales 663.1 567.0 (96.1) (14.5%) (Depreciation of Yen) : +78.6 Others : (1.8) Cost of sales 257.8 273.5 15.7 6.1% Gross profit 405.3 2
Slide 22: Other Income/Expenses
Other Income/Expenses (Billions of Yen) Apr.‐Sep. ’14 Apr.‐Sep. ’15 Change %Change Other income 30.1 39.8 9.6 32.1% Interest income 5.3 4.2 (1.0) (20.3%) Dividend income 2.2 2.5 0.2 11.0% Gain on sales of marketable securities 4.6 11.4 6.8 147.3% Equity in earnings of affiliates 7.9 ‐ (7.9) ‐ Foreig
Slide 23: Analysis of Net Income Decrease
Analysis of Net Income Decrease (Billions of Yen) (億円) 350 300 202.7 250 200 150 100 7.9 50 88.7 58.4 78.6 5.0 45.4 0 0.4 (1.8) (15.7) ‐50 (3.3) ‐100 (375.5) ‐150 Net income Increase Decrease in Exchange rate Others Increase in Increase in Decrease Other Decrease in Net income Net income attributabl
Slide 24: Balance Sheet
Balance Sheet (Billions of yen) Mar. ’15 Sep. ’15 Change %Change Available fund (Billions of yen) 769.0* Current assets 1,342.4 959.8 (382.5) (28.5%) Breakdown • Cash and deposits : 641.6 Tangible fixed assets 1,497.6 1,683.0 185.4 12.4% • Long‐term time deposits : 36.0 • Marketable securities : 73.
Slide 25: Statement of Cash Flows
Statement of Cash Flows (Billions of Yen) Apr.‐Sep. ’14 Apr.‐Sep. ’15 Change %Change Income before income taxes 368.4 258.8 (109.6) (29.8%) Depreciation and amortization 25.6 35.1 9.4 37.0% Recovery of recoverable accounts under production sharing (capital expenditures) 36.6 26.8 (9.8) (26.8%) Recov
Slide 26: Financial Indices
Financial Indices Net Debt/Total Capital Employed (Net)* Equity Ratio** Mar.ʹ15 Sep.ʹ15 68.2% 67.5% (16.8%) (1.2%) Mar.ʹ15 Sep.ʹ15 Maintain sound financial indices Increase available funds by external loans to D/E Ratio*** prepare for prolonged low crude oil price Financial indices in the near
Slide 27: Differences between Consolidated Financial Forecasts and Actual Results
Differences between Consolidated Financial Forecasts and Actual Results for the six months ended September 30, 2015 ‐ Assumptions (August 7, 2015) 1st half (Previous Forecasts) Crude oil price (Brent) (US$/bbl) 61.8 Exchange rate (yen/US$) 120.7 (November 10, 2015) 1st half (Actual Results) Crude oi
Slide 28: Revisions of Financial Forecasts for the year ending March 31, 2016
Revisions of Financial Forecasts for the year ending March 31, 2016 ‐ Assumptions (August 7, 2015) 1st half 2nd half Full year Crude oil price (Brent) (US$/bbl) 61.8 60.0 60.9 Exchange rate (yen/US$) 120.7 120.0 120.4 (November 10, 2015) 1st half 2nd half Full year Crude oil price (Brent) (US$/bbl)