Slide 1: Financial Results for the Six Months ended September 30, 2013
INPEX CORPORATION Financial Results for the Six Months ended September 30, 2013 November 8, 2013
Slide 2: Agenda
Agenda 1. Corporate Overview Toshiaki Kitamura Representative Director, President & CEO 2. Financial Results for the six months ended September 30, 2013 Masahiro Murayama Director, Managing Executive Officer Head 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 2013 Corporate Highlights (1/3)
First‐Half 2013 Corporate Highlights (1/3) ■ Half‐year Results ‐ Net sales ¥650.4 billion (12.4% increase YoY) (Apr.2013 ‐Sep.2013) ‐ Net income ¥80.0billion (28.1% decrease YoY) ■ Net Production ‐ 403 thousand BOED (0.2% decrease YoY) (Apr.2013 ‐Sep.2013) ‐ EPC works progressing in due course ‐ In
Slide 6: First-Half 2013 Corporate Highlights (2/3)
First‐Half 2013 Corporate Highlights (2/3) Continuous Enhancement of E&P Activities (Medium to Long Term Vision of INPEX‐Management Policy No.1) Acquisition of New Exploration Blocks • JPDA11‐106 contract area at the Joint Petroleum Development Area (Apr.) • Area 15, Oriental Republic of Uruguay(M
Slide 7: First-Half 2013 Corporate Highlights (3/3)
First‐Half 2013 Corporate Highlights (3/3) Strengthening Gas Supply Chain (Medium to Long Term Vision of INPEX‐Management Policy No.2) Ichthys LNG Project to Secure New Shipping Vessels (Jun.) Completion of constructing “Naoetsu Line” and “Shin Nagaoka Line”, Japan (Natural Gas Trunk Pipelines)
Slide 8: Ichthys LNG Project (1/2)
Ichthys LNG Project (1/2) Status of current works Proved reserves: Approx. 1,030 [Offshore facilities] million BOE * Production volume (expected): ‐ Engineering, procurement & construction of CPF and FPSO ongoing ‐8.4 million t/y of LNG ‐ Manufacturing 42” linepipes completed and coating proce
Slide 9: Ichthys LNG Project (2/2)
Ichthys LNG Project (2/2) Construction of CPF Hull in Korea FPSO Hull 1st Steel Cutting Ceremony in Korea Onshore LNG Plant Site 42” Linepipe Coating Yard in Indonesia in Darwin 8
Slide 10: Abadi LNG Project
Abadi LNG Project Development at Abadi (image) SURF (subsea production facilities) FEED commenced in November 2012. FLNG FEED commenced in January 2013. AMDAL(Environmental & Social Impact Assessment Process) ongoing Drilling rig • Plans to complete the AMDAL report by the end of 2013 and to obt
Slide 11: Strengthening Gas Supply Chain
Strengthening Gas Supply Chain Construction of Naoetsu LNG Terminal – In Aug., first LNG carrier arrived at Naoetsu LNG Terminal 海上生産施設 – Targeting commercial operation from January 2014 Expansion of Natural Gas Pipeline Network – In Jul., completion of constructing “Naoetsu Line” and “Shin Naga
Slide 12: First-Half 2013 Topics (1/2)
First‐Half 2013 Topics (1/2) Production/Development Exploration activity Kashagan Oil Production Facility ■ Kashagan oil field started production of ■ Encountered oil pay in Walker Ridge 95/96/139/140 Blocks U.S. Gulf of crude oil – The production capacity in the initial period is Mexico anticipated
Slide 13: First-Half 2013 Topics (2/2)
First‐Half 2013 Topics (2/2) Exploration projects Entered into Cooperation Agreement with Rosneft Participation in Zapadno‐ for Magadan 2 and 3 Yaraktinsky block and blocks in the Sea of Bolshetirsky block, onshore Okhotsk, Russia Irkutsk, Russia Acquisition of Exploration Block WA‐494‐P, Offshore A
Slide 14: Net Production (April – September 2013)
Net Production* (April – September 2013) 500 404 403 Main increasing factor 400 3% 5% ・ Increase in production in Middle East / Africa region due to the acquisition of interest in the Block 14, Republic of Angola and 39% (MBOED) capacity building in the ADMA Block, Abu 300 41% Dhabi ( + 11MBOED) 6%
Slide 15: Financial Results for the six months ended September 30, 2013
Financial Results for the six months ended September 30, 2013 Masahiro Murayama Director, Managing Executive Officer Head of Finance & Accounting Division
Slide 16: Highlights of the Consolidated Financial Results
Highlights of the Consolidated Financial Results for the six months ended September 30, 2013 Apr.‐Sep. ’12 Apr.‐Sep. ’13 Change %Change Net Sales (Billions of yen) 578.5 650.4 71.9 12.4% Crude Oil Sales 367.8 426.7 58.9 16.0% Natural Gas Sales (including LPG) 195.0 214.8 19.8 10.2% Others 15.6 8.8 (
Slide 17: Crude Oil Sales
Crude Oil Sales Apr.‐Sep. ‘12 Apr.‐Sep. ‘13 Change %Change Net Sales (Billions of yen) 367.8 426.7 58.9 16.0% Sales volume (thousand bbl) 42,120 40,578 (1,543) (3.7%) Average unit price of overseas 109.24 106.21 (3.03) (2.8%) production ($/bbl) Average unit price of domestic production(¥/kl) 59,214
Slide 18: Natural Gas Sales (excluding LPG)
Natural Gas Sales (excluding LPG) Apr.‐Sep. ‘12 Apr.‐Sep. ‘13 Change %Change Net Sales (Billions of yen) 180.5 203.9 23.4 13.0% Sales volume (million cf) 153,562 159,671 6,109 4.0% Average unit price of overseas production ($/thousand cf) 13.96 12.83 (1.13) (8.1%) Average unit price of domestic sale
Slide 19: Analysis of Net Sales Increase
Analysis of Net Sales Increase (Billions of Yen) 700 Crude Oil (13.1) 116.7 Natural Gas (including LPG) +1.7 600 (6.7) (11.3) 500 (26.6) Crude Oil +82.7 400 Natural Gas (including LPG) +33.9 650.4 300 578.5 Crude Oil (10.7) Natural Gas (including LPG) (15.8) 200 100 0 Net Sales Decrease in Decrease
Slide 20: Statement of Income
Statement of Income (Billions of Yen) Apr.‐Sep. ’12 Apr.‐Sep. ’13 Change %Change Crude Oil sales : 426.7 Net Sales 578.5 650.4 71.9 12.4% (Change) +58.9 Cost of Sales 201.9 249.2 47.2 23.4% Natural Gas sales* : 214.8 (Change) +19.8 Exploration expenses 4.0 16.6 12.5 307.7% Selling, general and Cost
Slide 21: Other Income/Expenses
Other Income/Expenses Apr.‐ Apr.‐ (Billions of Yen) Change %Change Sep. ’12 Sep. ’13 Other income 39.2 18.3 (20.9) (53.2%) Interest income 3.1 8.7 5.6 183.2% Dividend income 2.0 2.1 0.1 9.0% Equity in earnings of affiliates 2.8 ‐ (2.8) (100.0%) Gain on transfer of mining rights 22.7 ‐ (22.7) (100.0%
Slide 22: Analysis of Net Income Decrease
Analysis of Net Income Decrease (Billions of Yen) Main Factors; 200 116.7 ‐ Decrease in gain on sales of investment securities (’12: Sales of the Ichthys downstream JV share, etc.) (4.9) 180 ‐ Absence of one‐off gain on transfer of mining rights (6.7) (’12: Gain on transfer of the Ichthys upstream J
Slide 23: Balance Sheet
Balance Sheet (Billions of yen) Mar. ’13 Sep. ’13 Change %Change Available fund (Billions of yen) 1,512.0* Current assets 1,106.5 1,052.5 (53.9) (4.9%) Breakdown Tangible fixed assets 584.5 738.3 153.7 26.3% ・Cash and deposits : 573.4 ・Long‐term time deposits : 414.8 Intangible assets 380.1 414.4 34
Slide 24: Statement of Cash Flows
Statement of Cash Flows (Billions of Yen) Apr.‐Sep. ’12 Apr.‐Sep. ’13 Change %Change Income before income taxes and minority interests 363.8 350.6 (13.1) (3.6%) Depreciation and amortization 25.9 23.9 (2.0) (7.7%) Recovery of recoverable accounts under production 26.3 30.9 4.5 17.5% sharing (capital
Slide 25: Differences between Consolidated Financial Forecasts and Actual Results
Differences between Consolidated Financial Forecasts and Actual Results for the six months ended September 30, 2013 ‐ Assumptions (August 2, 2013) 1st half (Previous Forecasts) Crude oil price (Brent) (US$/bbl) 101.7 Exchange rate (yen/US$) 96.9 (November 7, 2013) 1st half (Actual Results) Crude oil
Slide 26: Revisions of Financial Forecasts for the year ending March 31, 2014
Revisions of Financial Forecasts for the year ending March 31, 2014 ‐ Assumptions (August 2, 2013) 1st half 2nd half Full year Crude oil price (Brent) (US$/bbl) 101.7 100.0 100.8 Exchange rate (yen/US$) 96.9 95.0 95.9 (November 7, 2013) 1st half 2nd half Full year Crude oil price (Brent) (US$/bbl) 1
Slide 27: 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, 2014 (Note 1) (This is the sensitivity as of the announcement made in May 2013. The impact of Exchange Rate is shown in more detail below.) (Bil
Slide 28: 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