Inpex Corporation · TSE:1605
Inpex — H1 FY2019/03 Earnings Presentation
27 slides from Inpex's earnings presentation, Nov 8, 2018
Slide 1: Financial Results for the six months ended September 30, 2018
INPEX CORPORATION Financial Results for the six months ended September 30, 2018 November 8, 2018
Slide 2: Agenda
Agenda Corporate Overview Consolidated Financial Results for the six months ended September 30, 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 Takayuki Ueda Representative Director, President & CEO
Slide 5: First Half FY 2019/03 Financial Results Presentation Highlights
First Half FY 2019/03 Financial Results Presentation Highlights Half‐year Financial Results (Apr.2018 – Sep.2018) • Net sales ¥438.2 billion (2.2% decrease YoY） Financial Results • Net income ¥34.0 billion (12.9% increase YoY） and Forecasts Financial Forecasts (FY2019/03) • Net sales ¥1,001.0 bi
Slide 6: First Half FY 2019/03 Corporate Highlights
First Half 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 pr
Slide 7: Ichthys LNG Project Overview
Ichthys LNG Project Overview Current progress Proved reserves Production of gas from the wellhead began in July 2018 Approx. 930 million BOE (based on INPEX’s Commenced condensate and LNG shipment in October participating interest of 62.245%) 2018. Thereafter, the first LNG shipment arrive
Slide 8: Ichthys LNG Project History
Ichthys LNG Project History History since acquisition of the Ichthys Block: 1998~2018 ：1998年～2018年 1998 Acquisition of Block ■Acquired the Ichthys Block as operator ■Confirmed the presence of gas and 2000～2004 Exploration condensate through the first and second drilling campaigns The first drill
Slide 9: Ichthys LNG Project Status after Production start-up
Ichthys LNG Project Status after Production start‐up Production ramp‐up OPEX Production currently undergoing steady ramp up Peak‐time production cost expected to be Production expected to reach plateau 2~3 years from LNG similar to that of other INPEX’s projects production start‐up 2nd t
Slide 10: 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 INPEX 50% WA‐79‐R Murphy 50% WA‐56‐R (Lasseter, 2014) (Mimia, 2008） WA‐44‐L(Prelude FLNG) WA‐58‐R Shell 67.5% INPEX 60% INPEX 17.5% WA‐57‐R TOTAL 40% KOGAS 10.0% Darwin CPC 5.0% WA‐274‐P WA‐81‐R WA‐50‐L / （Cr
Slide 11: 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 developing revised plan of development based on the results of Pre‐FEED work etc. to submit to
Slide 12: Project Progress under Development / in Production
Project Progress under Development / in Production Abu Dhabi Oil Fields Kashagan Oil Field ナダ Prelude FLNG Project (In Production: Abu Dhabi) (In Production: Kazakhstan) (Under Development: Australia) Current Progress Current Progress Current Progress Development work is ongoing to increase
Slide 13: Project Progress under Exploration
Project Progress under Exploration Northern Gulf of Mexico R1.4 Block 3 (Perdido) Western Barents ナダ Sea PL767 Southern Gulf of Mexico R2.4 Block 22 (Salina) Western Barents Sea PL950 (Under Exploration: Mexico) (Under Exploration: Norway) R1.4 Block 3 (Perdido) PL767 Made a successful joint b
Slide 14: 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 Business Division” in June 2018 FY 2018/03: approx. 2,120 million m3 * Indonesia:
Slide 15: Net Production (April – September 2018)
Net Production* (April – September 2018) 500 481 5% Production increase factors 400 355 • Production ramp‐up at 6% Kashagan Project 54% • Production commencement at (Thousand BOED) 300 Ichthys Project 64% 200 9% Production decrease factors • Expiration of Offshore 100 25% Mahakam Block PSC 14% 8% 7%
Slide 16: Financial Results for the six months ended September 30, 2018
Financial Results for the six months ended September 30, 2018 Masahiro Murayama Director, Senior Managing Executive Officer Senior Vice President, Finance & Accounting
Slide 17: Highlights of the Consolidated Financial Results
Highlights of the Consolidated Financial Results for the six months ended September 30, 2018 Apr. ‐ Sep. ‘17 Apr. ‐ Sep. ‘18 Change %Change Net sales (Billions of yen) 447.9 438.2 (9.7) (2.2%) Crude oil sales 330.9 372.9 42.0 12.7% Natural gas sales (including LPG) 110.8 57.9 (52.8) (47.7%) Others 6
Slide 18: Crude Oil Sales
Crude Oil Sales Apr. ‐ Sep. ‘17 Apr. ‐ Sep. ‘18 Change %Change Net sales (Billions of yen) 330.9 372.9 42.0 12.7% Sales volume (thousand bbl) 57,530 46,462 (11,068) (19.2%) Average unit price of overseas 51.25 73.16 21.91 42.8% production ($/bbl) Average unit price of domestic 37,780 54,443 16,663 4
Slide 19: Natural Gas Sales (excluding LPG)
Natural Gas Sales (excluding LPG) Apr. ‐ Sep. ‘17 Apr. ‐ Sep. ‘18 Change %Change Net sales (Billions of yen) 108.3 57.5 (50.7) (46.8%) Sales volume (million cf) 151,351 69,026 (82,325) (54.4%) Average unit price of overseas 5.14 2.67 (2.47) (48.1%) production ($/thousand cf) Average unit price of do
Slide 20: Analysis of Net Sales Decrease
Analysis of Net Sales Decrease (Billions of Yen) 500 Crude Oil (63.2) Crude Oil (6.1) Natural Gas (including LPG) (0.3) Natural Gas (including LPG) (47.6) 450 106.6 1.0 (6.5) 400 350 (110.9) 300 Crude Oil 111.5 Natural Gas (including LPG) (4.8) 250 447.9 438.2 200 150 100 50 0 Net Sales Decrease in
Slide 21: Statement of Income
Statement of Income Decrease in sales volume : (110.9) (Billions of Yen) Apr. ‐ Sep. ‘17 Apr. ‐ Sep. ‘18 Change %Change Increase in unit price : +106.6 Exchange rate Net sales 447.9 438.2 (9.7) (2.2%) (Appreciation of yen) : (6.5) Others : 1.0 Cost of sales 222.1 176.0 (46.1) (20.8%) Cost of sales f
Slide 22: Other Income/Expenses
Other Income/Expenses Apr. ‐ Sep. Apr. ‐ Sep. (Billions of Yen) Change %Change ‘17 ‘18 Other income 15.6 33.6 17.9 114.7% Interest income 4.0 4.1 0.0 1.4% Dividend income 2.0 1.4 (0.6) (31.3%) Equity in earnings of affiliates Profit increase in affiliates 2.1 10.5 8.4 400.6% accounted for by the equ
Slide 23: Analysis of Net Income Increase
Analysis of Net Income Increase (Billions of Yen) (億円) 100 15.4 80 46.1 4.2 60 (4.5) 40 30.1 34.0 (44.3) 106.6 (3.3) 1.0 20 (6.5) 0 ‐20 ‐40 (110.9) ‐60 Net income Decrease Increase in Exchange rate Others Decrease in Increase in Decrease Other Increase in Net income Net income attributable in Sales
Slide 24: Balance Sheet
Balance Sheet (Billions of yen) Mar. ‘18 Sep. ‘18 Change %Change Current assets 466.3 646.0 179.7 38.5% Summary of financial information Tangible fixed assets 2,044.6 2,207.5 162.9 8.0% for Ichthys downstream JV (100% basis, including the Company’s Intangible assets 541.5 524.0 (17.4) (3.2%) equity
Slide 25: Statement of Cash Flows
Statement of Cash Flows (Billions of Yen) Apr. ‐ Sep. ‘17 Apr. ‐ Sep. ‘18 Change %Change Income before income taxes 195.4 246.9 51.5 26.4% Depreciation and amortization 45.4 41.7 (3.7) (8.2%) Recovery of recoverable accounts under production sharing (capital expenditures) 34.9 10.0 (24.9) (71.4%) Re
Slide 26: Differences between Consolidated Financial Forecasts and Actual Results
Differences between Consolidated Financial Forecasts and Actual Results for the six months ended September 30, 2018 ‐ Assumptions (August 9, 2018) 1st half (Previous Forecasts) Crude oil price (Brent) (US$/bbl) 72.5 Exchange rate (yen/US$) 109.6 (November 7, 2018) 1st half (Actual Results) Crude oil
Slide 27: Revisions of Financial Forecasts for the year ending March 31, 2019
Revisions of Financial Forecasts for the year ending March 31, 2019 ‐ Assumptions (August 9, 2018) 1st half 2nd half Full year Crude oil price (Brent) (US$/bbl) 72.5 70.0 71.2 Exchange rate (yen/US$) 109.6 110.0 109.8 (November 7, 2018) 1st half 2nd half Full year Crude oil price (Brent) (US$/bbl) 7