Slide 1: Financial Results for the year ended March 31, 2014
INPEX CORPORATION Financial Results for the year ended March 31, 2014 May 12, 2014 0
Slide 2: Agenda
Agenda Corporate Overview Outlook Financial Results for the year ended March 31, 2014 Consolidated Financial Forecasts for the year ending March 31, 2015 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: FY 2014/03 Corporate Highlights (1/3)
FY 2014/03 Corporate Highlights (1/3) ■ Proved Increased by 16% YoY to 2.53 billion BOE Reserves ■ Net Production 409 thousand BOED ■ Financial Results ‐ Net sales ¥1,334.6 billion (9.7% increase YoY) (Mar.2014) ‐ Net profit ¥183.6 billion (0.4% increase YoY) ■ Ichthys ‐ Development works (Engineeri
Slide 6: FY 2014/03 Corporate Highlights (2/3)
FY 2014/03 Corporate Highlights (2/3) Continuous Enhancement of E&P Activities (Medium to Long Term Vision of INPEX‐Growth Target No.1) Acquisition of New Exploration Blocks JPDA11‐106 contract area in the Joint Petroleum Development Area between East Timor and Australia Area 15, Oriental Republ
Slide 7: FY 2014/03 Corporate Highlights (3/3)
FY 2014/03 Corporate Highlights (3/3) Strengthening Gas Supply Chain (Medium to Long Term Vision of INPEX‐ Growth Target No.2) Naoetsu LNG Terminal brought on stream • Secured New Shipping Vessels for Ichthys LNG Project • Completed construction of “Naoetsu Line” and “Shin Nagaoka Line” in Japan (
Slide 8: Ichthys LNG Project (1/3)
Ichthys LNG Project (1/3) Proved reserves: Approx. 1,030 million BOE (Based on INPEX’s Participating interest of 66.07%*) Production volume (expected): ‐8.4 million t/y of LNG ‐Approx. 1.6 million t/y of LPG ‐Approx. 100,000 bbl/d of condensate (at peak) CAPEX: US$34.0 billion Ceremony for FPS
Slide 9: Ichthys LNG Project (2/3) Offshore Facilities
Ichthys LNG Project (2/3) Offshore Facilities Construction of FPSO Hull (Feb. 2014 in Construction of Riser Support Korea) Structure (Jan. 2014 in Indonesia) Major works for Offshore Facilities done since FID and plans for 2014 2012 2013 2014 Detailed engineering /procurement Fabrication/coating of
Slide 10: Ichthys LNG Project (3/3) Onshore Facilities
Ichthys LNG Project (3/3) Onshore Facilities Birdʹs‐eye view of Onshore LNG Plant Site in Darwin Jun. 2009 Feb. 2014 Construction of LNG storage tanks in Darwin May 2012 Major works for Onshore Facilities done since FID and plans for 2014 2012 2013 2014 Detailed engineering /procurement Accommodatio
Slide 11: Abadi LNG Project
Abadi LNG Project Comparison Abadi structure and Kanto region‐ SURF (Subsea Production Facilities) FEED Massive potential reserves (Front End Engineering Design) work commenced in November 2012 and completed in January 2014 FLNG (Floating LNG) FEED work commenced in January 2013 is ongoing AMD
Slide 12: Progress in Enhancing Gas Supply Chain
Progress in Enhancing Gas Supply Chain Naoetsu LNG Terminal Indigenous gas source Start‐up of Naoetsu LNG Terminal ‐ Naoetsu LNG Terminal brought on stream in December 2013. Planed to receive LNG cargoes from Ichthys and other LNG projects in the future Enhancing marketing activities and trading
Slide 13: Topics for FY 2014/03: Upper Zakum Oil Field
Topics for FY 2014/03 Upper Zakum Oil Field in ADMA Block Participating Interest: ‐INPEX(JODCO) 12%, Abu Dhabi National Oil Company 60%, Exxon Mobil 28% Production Facility (artificial island) Extension of the Concession Agreement for the Upper Zakum Oil Field for 15 years (from 2026 to 2041) / Fi
Slide 14: Net Production (FY 2014/03)
Net Production* (FY 2014/03) 500 Main increase factor 408 409 ・ Increase in production in Middle East / 400 4% 5% Africa Region due mainly to new line‐up of the Angora Block 14 and expansion of the ADMA Block (+9 thousand BOED) 39% (Thousand BOED) 300 41% Main decrease factor ・ Decrease in productio
Slide 15: Proved + Probable Reserves and Reserves Indices
Proved + Probable Reserves* and Reserves Indices 5,000 Reserves Life Finding & Development Cost per BOE (3‐year average ） 4,477 (RP Ratio**) 4,500 4,255 20.0 4,404 4,095 4,000 11.2 11.7 3,500 1,945 US$/boe 1,823 10.0 1,907 3,000 2,818 6.3 Million BOE 2,500 0.0 2,000 30.2 Mar. ʹ12 Mar. ʹ13 Mar. ʹ14 y
Slide 16: Outlook
Outlook Toshiaki Kitamura Representative Director, President & CEO
Slide 17: Investment Plan
Investment Plan By Activity Comparison with Plan Released FY 2013/03 (Billions of Yen) (Millions of US$) (Billions of Yen) 1,125.0 (Millions of US$ ) 1,200 11,910 12,000 (11,250) 11,250 1,100 962.9 11,000 (9,612) 9,612 1,000 9,670 10,000 (Actual) 900 794.0 9,000 (7,940) 7,877 800 (Actual) 7,940 653.
Slide 18: Net Production Volume Projection
Net Production* Volume Projection Target for the 2020s Following the Ichthys 1 million BOED start‐up etc., the total 1,000 production from existing projects will rise to 900 approximately 700 thousand BOED 800 600 ～ 700 700 600 (Thousand BOED) 500 471 409 411 421 400 5% 41% 300 200 6% 41% 100 0 7% M
Slide 19: FY 2015/03 Outlook
FY 2015/03 Outlook Investment Plan Net Production Project Development: Target production: Ichthys LNG Project 411 thousand BOED • Start laying GEP 990 billion Yen • Spud production wells Exploration: (2 thousand BOED • Commence to receive plant increase on FY 2014/03) modules and installatio
Slide 20: Financial Results for the year ended March 31, 2014
Financial Results for the year ended March 31, 2014 Masahiro Murayama Director, Managing Executive Officer Head of Finance & Accounting Division
Slide 21: Highlights of the Consolidated Financial Results
Highlights of the Consolidated Financial Results for the year ended March 31, 2014 Mar. ‘13 Mar. ‘14 Change %Change Net Sales (Billions of yen) 1,216.5 1,334.6 118.0 9.7% Crude Oil Sales 788.1 858.7 70.6 9.0% Natural Gas Sales (including LPG) 397.7 455.4 57.6 14.5% Others 30.6 20.4 (10.1) (33.2%) Op
Slide 22: Crude Oil Sales
Crude Oil Sales Mar. ’13 Mar. ’14 Change %Change Net Sales (Billions of yen) 788.1 858.7 70.6 9.0% Sales volume (thousand bbl) 86,189 79,171 (7,018) (8.1%) Average unit price of overseas 110.11 107.78 (2.33) (2.1%) production ($/bbl) Average unit price of domestic production(¥/kl) 64,207 67,817 3,61
Slide 23: Natural Gas Sales (excluding LPG)
Natural Gas Sales (excluding LPG) Mar. ‘13 Mar. ‘14 Change %Change Net Sales (Billions of yen) 370.5 431.1 60.6 16.4% Sales volume (million cf) 318,792 327,117 8,325 2.6% Average unit price of overseas 13.43 13.09 (0.34) (2.5%) production ($/thousand cf) Average unit price of domestic sales(¥/ m3) 4
Slide 24: Statement of Income
Statement of Income Decrease in Sales Volume : (60.4) (Billions of Yen) Mar. ’13 Mar. ’14 Change %Change Decrease in Unit Price : (23.2) Net Sales 1,216.5 1,334.6 118.0 9.7% Exchange rate (Depreciation of Yen) : +211.9 Cost of Sales 426.3 490.4 64.0 15.0% Others : (10.1) 20.1 Cost of sales for Explo
Slide 25: Other Income/Expenses
Other Income/Expenses (Billions of Yen) Mar. ‘13 Mar. ‘14 Change %Change Other income 98.6 50.7 (47.9) (48.6%) Interest income 8.7 17.4 8.7 99.9% Dividend income 7.8 9.2 1.3 17.8% Gain on sales of marketable securities 0.0 10.3 10.2 ‐% Other 82.0 13.7 (68.3) (83.3%) Other expenses 73.9 34.2 (39.7) (
Slide 26: Analysis of Net Profit Increase
Analysis of Net Profit Increase Main Factors; (Billions of Yen) • Decrease in gain on transfer of the Ichthys equity interest, etc. (75.6) (’12: Gains on transfer of equity interest and sales of investment securities) 350 • Foreign exchange gain +25.7, Gain on sales of marketable securities +10.2 an
Slide 27: Balance Sheet
Balance Sheet (Billions of yen) Mar. ‘13 Mar. ’14 Change %Change Available fund (Billions of yen) 1,466.1* Current assets 1,106.5 1,140.2 33.7 3.0% Breakdown • Cash and deposits : 650.1 Tangible fixed assets 584.5 951.7 367.2 62.8% • Long‐term time deposits : 364.1 • Marketable securities : 201.0 In
Slide 28: Statement of Cash Flows
Statement of Cash Flows (Billions of Yen) Mar. ‘13 Mar. ‘14 Change %Change Income before income taxes and minority interests 718.1 750.0 31.9 4.4% Depreciation and amortization 51.9 50.9 (0.9) (1.9%) Recovery of recoverable accounts under production sharing (capital expenditures) 54.0 67.0 12.9 24.0
Slide 29: Financial Indices
Financial Indices Net Debt/Total Capital Employed (Net)* Equity Ratio** Mar.ʹ13 Mar.ʹ14 (43.9%) (31.9%) 68.6% 69.1% Mar.ʹ13 Mar.ʹ14 D/E Ratio*** * Net Debt/Total Capital Employed (Net) = (Interest‐bearing debt ‐ Cash and deposits ‐ Public and corporate bonds and other debt securities (with determina
Slide 30: Consolidated Financial Forecasts for the year ending March 31, 2015
Consolidated Financial Forecasts for the year ending March 31, 2015 Masahiro Murayama Director, Managing Executive Officer Head of Finance & Accounting Division
Slide 31: Consolidated Financial Forecasts for the year ending March 2015
Consolidated Financial Forecasts for the year ending March 31, 2015 1st Half 2nd Half Full year Brent oil price ($/bbl) 105.0 105.0 105.0 Average exchange rate (¥/$) 100.0 100.0 100.0 Mar. ‘14 Mar. ‘15 Full Year (Actual) (Forecasts ) Change % Change Net Sales (Billions of yen) 1,334.6 1,331.0 (3.6)
Slide 32: Sales and Investment Plan for the year ending March 31, 2015
Sales and Investment Plan for the year ending March 31, 2015 Mar. ’14 Mar. ‘15 (Actual) (Forecasts ) Change % Change Crude oil (thousand bbl)1 79,171 82,093 2,922 3.7% Sales Volume Natural gas (million cf)2 327,117 323,555 (3,562) (1.1%) Overseas 260,011 255,941 (4,070) (1.6%) 67,106 67,614 508 Japa
Slide 33: Net Income Sensitivities (1/2)
Net Income Sensitivities (1/2) Sensitivities of crude oil price and foreign exchange fluctuation on consolidated net income for the year ending March 31, 2015 (Note 1) (The impact of Exchange Rate is shown in more detail below.) (Billions of yen) Crude Oil Price; $1/bbl increase (decrease) (Note 2
Slide 34: Net Income Sensitivities (2/2)
Net Income Sensitivities (2/2) Details on valuation for assets and liabilities denominated in the U.S. dollar Exchange gain/loss is booked in the Exchange gain/loss directly affects net assets Statements of Income. in the balance sheet (in the form of unrealized exchange gain/loss). The assets and l