Inpex Corporation · TSE:1605
Inpex — FY2010 Earnings Presentation
29 slides from Inpex's earnings presentation, May 14, 2010
Slide 1: Financial Results for the year ended March 31, 2010
Financial Results f th for the year ended d d March M h 31,31 2010 INPEX CORPORATION May 14, 2010
Slide 2: Agenda
Agenda Financial Results for the year ended March 31, 31 2010 Consolidated Financial Forecasts for the year ending March 31, 2011 Corporate Overview Outlook 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 tl available il bl to t it, it a
Slide 4: Financial Results for the year ended March 31, 2010
Financial Results for the y year ended March 31,, 2010 Masahiro Murayama Director Managing Executive Officer Director, Head of Finance & Accounting Division
Slide 5: Highlights of the Consolidated Financial Results for the year ended March 31, 2010
Highlights of the Consolidated Financial Results for the year ended March 31, 2010 Mar. ‘09 Mar. ‘10 Change %Change Net Sales S l ((Billions ll off yen)) 1,076.1 840.4 (235.7) (21.9%) Crude Oil Sales 650.3 486.9 (163.4) (25.1%) Natural Gas Sales (including LPG) 398.2 326.4 (71.8) (18.0%) Others 27.5
Slide 6: Crude Oil Sales
Crude Oil Sales Mar. ’09 Mar. ’10 Change %Change Net Sales (Billions of yen) 650.3 486.9 (163.4) (25.1%) Sales volume (Mbbl) 75,427 76,095 668 0.9% Average unit price of overseas 82.70 68.40 (14.30) (17.3%) production ($/bbl) Average unit price of domestic production(¥/kl) 65,829 41,470 (24,359) (37
Slide 7: Natural Gas Sales (excluding LPG)
Natural Gas Sales (excluding LPG) Mar. ‘09 Mar. ‘10 Change %Change Net Sales (Billions of yen) 382.4 307.8 (74.5) (19.5%) Sales volume (MMcf) 401,076 416,684 15,609 3.9% Average unit price of overseas 9.22 7.43 (1.79) (19.4%) production ($/Mcf) Average unit price of domestic production(¥/ m3) 37.39
Slide 8: Analysis of Net Sales Decrease
Analysis of Net Sales Decrease (Billions of Yen) Crude Oil (114.0) Natural Gas (including LPG) (68.0) 1 200 1,200 Crude Oil (55.0) Natural Gas (including LPG) (28.0) 1,000 800 Crude Oil +5.6 Natural Gas (including LPG) +24.2 600 400 200 0 Net Sales Increase in Decrease in Exchange rate Net Sales Oth
Slide 9: Statements of Income
Statements of Income Crude Oil sales : 486.9 (Billions of Yen) Mar. ‘09 Mar. ’10 Change %Change (Change) (163.4) Net Sales 1,076.1 840.4 (235.7) (21.9%) Natural Gas sales* : 326.4 (Change) (71.8) Cost of Sales 319 0 319.0 298 1 298.1 (20 8) (20.8) (6 5%) (6.5%) Exploration expenses 25.9 15.7 (10.2)
Slide 10: Other Income/Expenses
Other Income/Expenses (Billions of Yen) Mar. ‘09 Mar. ‘10 Change %Change Other income 32.0 21.4 (10.5) (33.0%) Interest income 9.5 4.3 (5.1) (54.3%) Di ide d income Dividend i o e 12 3 12.3 94 9.4 (2 8) (2.8) (23 2%) (23.2%) Equity in earnings of affiliates 0.9 ‐ (0.9) (100.0%) Other 9.2 7.6 (1.5) (
Slide 11: Analysis of Net Profit Decrease
Analysis of Net Profit Decrease 400 29.8 145.2 (8.7) 300 Main Factor ‐ Decrease in royalty due to decreased (Billions of Yen) sales in ADMA block 22.0 200 15.6 2.9 (182.0) 20.8 Main Factors ‐ Interest income (5.1) ‐ Dividend income (2.8) ‐ Loss on valuation of investment securities +31.7 100 ‐ Forei
Slide 12: Balance Sheets
Balance Sheets (Billions of yen) Mar. ‘09 Mar. ’10 Change %Change Investment in Naoetsu LNG Receiving Terminal Current assets 411.1 492.8 81.7 19.9% and Ichthys, etc. Tangible fixed assets 297 6 297.6 358 0 358.0 60 4 60.4 20 3% 20.3% Intangible assets 253.6 239.2 (14.4) (5.7%) Recoverable accounts
Slide 13: Statements of Cash Flows
Statements of Cash Flows (Billions of Yen) Mar. ‘09 Mar. ‘10 Change %Change Income before income taxes and minority interests 616.1 442.0 (174.1) (28.3%) Depreciation and amortization 42.9 40.3 (2.6) (6.1%) Recoveryy of recoverable accounts under p production sharing (capital expenditures) 45 7 45.7
Slide 14: Financial Indices
Financial Indices Net Debt/Total Capital Employed (Net)* Equity Ratio** Mar '09 Mar. Mar '10 Mar. 71 9% 71.9% 68 9% 68.9% (31.2%) (30.6%) Mar. '09 Mar. '10 D/E Ratio*** * Net Debt/Total Capital Employed (Net) = (Interest‐bearing debt ‐ Cash and deposits ‐ Public and corporate bonds and other debt se
Slide 15: Consolidated Financial Forecasts for the year ending March 31, 2011
Consolidated Financial Forecasts f th for the year ending di M March h 31 31, 2011 Masahiro Murayama Director Managing Executive Officer Director, Head of Finance & Accounting Division
Slide 16: Consolidated Financial Forecasts for the year ending March 31, 2011
Consolidated Financial Forecasts for the year ending March 31, 2011 1st Half 2nd Half Full year Brent oil price ($/bbl) 77.5 77.5 77.5 Average exchange rate (¥/$) 90.0 90.0 90.0 Mar. ‘10 10 Mar. ‘11 11 Full Year (Actual) (Forecasts ) Ch Change % Change Ch Net Sales (Billions of yen) 840.4 863.0 22.6
Slide 17: Sales Volume and Investment Plan for the year ending March 31, 2011
Sales and Investment plan for the year ending March 31, 2011 Mar. ‘10 Mar. ‘11 (Actual) (Forecasts ) Change % Change Crude oil (Mbbl)1 76,095 74,374 (1,721) (2.3%) Saless Volume Natural gas (MMcf)2 416,684 397,743 (18,941) (4.5%) Overseas O 355,225 335,550 (19,675) (5.5%) 61,459 62,193 734 Japan 1.2
Slide 18: Net Income Sensitivities
Net Income Sensitivities Estimated Impact of crude oil price and foreign exchange fluctuation on consolidated net income for the year ending March 31, 2011 (Billions of yen) Brent Crude Oil Price; $1/bbl increase (decrease) +2.1 (2.1) Exchange Rate; ¥1 depreciation (appreciation) against the U.S.
Slide 19: Corporate Overview
Corporate Overview Naoki Kuroda Representative director, director President
Slide 20: FY 2010/03 Corporate Highlights
FY 2010/03 Corporate Highlights Net profit down by 26% : under severe business environment such as drop in average oil prices ‐18%, yen appreciation ‐10% Proved + probable reserves declined by approximately 8% : due mainly to the loss of produced volumes and impact of change in oil prices. Net
Slide 21: Proved Reserves
Proved Reserves* By Resource Type By Region Note: * Proved reserve volumes are based on the reserves report (preliminary) by DeGolyer and MacNaughton applying SEC regulations. Reserves that DeGolyer and MacNaughton did not evaluate are excluded. Volumes attributable to the equity method affiliates a
Slide 22: Proved + Probable Reserves
Proved + Probable Reserves* Reserves Life (RP Ratio**) 29.8 years 10.0 years * Proved reserve volumes are based on the reserves report (preliminary) by DeGolyer and MacNaughton applying SEC regulations. Probable reserve volumes are based on the reserves report (preliminary) by DeGolyer and MacNaught
Slide 23: Net Production (FY Mar. 2010)
Net Production* (FY Mar. 2010) Main increase factor 4% 5% ・ Farm‐in of Block 18, Ecuador in Oct. 2008 ( 3MBOE/D) (+3MBOE/D) 36% 33% Main decrease factor ・ Decrease in production in 7% 6% ADMA block, Abu Dhabi due to OPEC quota (‐13MBOE/D) 46% 48% Main increase factor ・ Increase of cost recovery oil
Slide 24: Ichthys Project
Ichthys Project FEED work in progress Condensate 85 Thousand bbl/d (peak rate) LNG 8.4 MMt/a LPG 1.6 MMt/a ‐ Onshore (natural gas liquefaction plant) Condensate 15 Thousand bbl/d (peak rate) ‐ Offshore (Offshore facilities & pipeline) Darwin Application for production license Submitted Prelimi
Slide 25: Abadi Project
Abadi Project The Plan Of Development (POD) was approved by the Indonesian Government. Working on the preparation for FEED Abadi Started AMDAL/IESIA(International FLNG Environmental & Social Impact Topside Swivel Assessment) LNG Hull Transfer a 10% participating interest to an Carrier Turret
Slide 26: Domestic Natural Gas Business
Domestic Natural Gas Business Domestic Natural Gas Sales - FY 2010/03 : approx. 1,710 MM m3* - Volume increased byy approx. pp 1 %. (Decreased sales by 90MM m3 to Shizuoka Gas Co. while direct sales increased) - FY 2011/3 (E) : approx. 1,730 MM m3* - Volume increase by approx.1% (Decreased sales t
Slide 27: Outlook
Outlook Naoki Kuroda Representative director, director President
Slide 28: Investment Plan
Investment Plan To invest approx. 4 trillion yen in the next 7 years for development activities etc. By Activity By Region (Billions of Yen) (Billions of Yen) * Mainly investments in Naoetsu LNG Receiving Terminal and domestic pipeline network, etc 27 ** Including Acquisition Costs
Slide 29: Net Production Volume Projection
Net Production* Volume Projection Long term production target (800‐1,000 thousand BOED) New Projects Kashagan Oil Field 5% (Expected to start in 2012) 5% Ichthys LNG Project Existing Projects 33% 45% (Expected to start in 2016) 7% 11% Abadi LNG Project 48% (Expected to start in 2016) 33% 7% 6%