Slide 1: Financial Results for the six months ended June 30, 2020
INPEX CORPORATION Financial Results for the six months ended June 30, 2020 August 7, 2020
Slide 2: Agenda
Agenda Corporate Overview Consolidated Financial Results for the six months ended June 30, 2020 Consolidated Financial Forecasts for the year ending December 31, 2020 Copyright © 2020 INPEX CORPORATION. All rights reserved. 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: FY 2020/12 Second Quarter Financial Results Highlights
FY 2020/12 Second Quarter Financial Results Highlights Net Income Income before Net Production Net Sales (Loss) One-off Profit (Loss)*1 (January to June 2020) FY2020/12 Q2 ¥391.6 billion (¥120.7 billion) ¥36.4 billion 582,000 BOED Financial Results (30.5% decrease YoY*2) (51.5% decrease YoY*2) (9% i
Slide 6: Recognition of Impairment Losses, Revision of FY2020 Consolidated Financial Forecasts, Dividend
Recognition of Impairment Losses, Revision of FY2020 Consolidated Financial Forecasts, Dividend Recognition of Impairment Losses Impairment tests conducted on assets in light of such factors as the drop in oil prices due to factors such as the spread of COVID-19 resulted in the recognition of 19
Slide 7: Response to Low Oil Prices: Investment and Cost Reduction Measures
Response to Low Oil Prices Investment and Cost Reduction Measures FY2020 development and exploration reduction targets and progress We have been pursuing our initial targets to reduce development investment by over 20% and exploration investment by over 40% groupwide compared to our initial fore
Slide 8: Securing Sufficient Liquidity and Free Cash Flow
Response to Low Oil Prices Securing Sufficient Liquidity and Free Cash Flow INPEX maintains abundant liquidity on hand and has sufficient commitment lines. FY2020 Free Cash Flow Forecast* INPEX will further strengthen its (billion yen) Approx. financial base with the following 350 measures. Cont
Slide 9: Implementing COVID-19 Countermeasures for Steady Production
Response to the Low Oil Price Implementing COVID-19 Countermeasures for Steady Production Stable operations and energy supply are being steadfastly maintained through various initiatives at INPEX-operated sites including Ichthys LNG facilities in Australia and the Minami-Nagaoka Gas Field and Naoe
Slide 10: Net Production
Net Production Net production for the first half increased reflecting the successful ramp-up of the Ichthys LNG Project. 600 582 534 3% 500 4% 42% (Thousand BOED) 400 43% Americas Middle East/Africa 300 10% 9% Eurasia 200 Asia/Oceania 40% Japan 38% 100 0 5% 4% (Reference figures) FY2020/12 Q2 Same
Slide 11: Ichthys LNG Project
Ichthys LNG Project Production Status Stable operations have been maintained without shutdowns, etc., as a result of various countermeasures against the spread of COVID-19. Number of LNG Cargoes 56 LNG cargoes shipped between January and June 2020 Approximately 10 LNG cargoes per month exp
Slide 12: Exploration Blocks in Vicinity of Ichthys Field
Exploration Blocks in Vicinity of Ichthys Field INPEX holds participating interests in 18 exploration blocks in the vicinity of the Ichthys Field. To date, gas reservoirs have been discovered including Crown, Lasseter, Mimia and Burnside. These gas reservoirs extend across at least 9 blocks. Lan
Slide 13: Abadi LNG Project
Abadi LNG Project Production Capacity Sufficiently Strong Project Economics Total output of natural gas (LNG equivalent): 10.5 million PSC term secured until 2055 tons per year including Excellent reservoir productivity enabling efficient • Approximately 9.5 million tons of LNG per year de
Slide 14: Progress on other key overseas projects supporting our business
Progress on other key overseas projects supporting our business Abu Dhabi Onshore Concession Abu Dhabi Offshore Oil Fields (In Production in Abu Dhabi) (Upper Zakum, Lower Zakum, Satah and Umm Al Dalkh) (In Production in Abu Dhabi) Target Production Capacity Target Production Capacity 2 millio
Slide 15: Natural Gas Business in Japan and Renewable Energy Business
Natural Gas Business in Japan and Renewable Energy Business and Effective CO2 Utilization Technology Development Natural Gas Business in Japan Renewable Energy Business and Effective CO2 Utilization Technology Development Naoetsu LNG Terminal Methanation Testing Facility Natural Gas Sales Volume*
Slide 16: Consolidated Financial Results for the six months ended June 30, 2020
Consolidated Financial Results for the six months ended June 30, 2020 Daisuke Yamada Director, Managing Executive Officer, Finance & Accounting
Slide 17: Comparison with 2Q FY2020/12
Comparison with 2Q FY2020/12 INPEX’s accounting period changed to the January to December period from the April to March period from the fiscal year ended December 31, 2019. FY2020 second quarter figures are compared with the reference figures of the January to June 2019 period. (Reference figures
Slide 18: Highlights of the Consolidated Financial Results
Highlights of the Consolidated Financial Results for the six months ended June 30, 2020 (Reference) 2Q FY2020 Same Period Last Year Change % Change (January - June ’20) (January - June ’19) Net sales (Billions of yen) 563.1 391.6 (171.4) (30.5%) Crude oil sales 421.3 246.3 (175.0) (41.5%) Natural ga
Slide 19: Crude Oil Sales
Crude Oil Sales (Reference) 2Q FY2020 Same Period Last Year Change % Change (January - June ’20) (January - June ’19) Net sales (Billions of yen) 421.3 246.3 (175.0) (41.5%) Sales volume (thousand bbl) 57,784 60,894 3,111 5.4% Average unit price of overseas production 66.21 37.27 (28.94) (43.7%) ($/
Slide 20: Natural Gas Sales (excluding LPG)
Natural Gas Sales (excluding LPG) (Reference) 2Q FY2020 Same Period Last Year Change % Change (January - June ’20) (January - June ’19) Net sales (Billions of yen) 130.9 136.7 5.8 4.4% Sales volume (million cf) 185,197 222,856 37,659 20.3% Average unit price of overseas production 4.21 4.17 (0.04) (
Slide 21: Analysis of Net Sales Decrease
Analysis of Net Sales Decrease (Billions of Yen) 700 Crude Oil (193.8) Natural Gas (including LPG) (8.1) 38.0 600 Crude Oil (3.8) 500 Natural Gas (including LPG) (1.2) 400 (201.9) (5.1) (2.3) Crude Oil +22.6 300 563.1 Natural Gas (including LPG) +15.3 200 391.6 100 0 (Reference) Increase in Decrease
Slide 22: Statement of Income
Statement of Income (Reference) 2Q FY2020 Same Period Last Year Change % Change (Billions of Yen) (January - June ’19) (January - June ’20) Increase in sales volume : +38.0 Net sales 563.1 391.6 (171.4) (30.5%) Decrease in unit price : (201.9) Exchange rate: (5.1) Cost of sales 246.8 226.0 (20.8) (8
Slide 23: Analysis of Income before One-off Profit (Loss) Decrease
Analysis of Income before One-off Profit (Loss) Decrease * Income before one-off profit (loss) (Billions of Yen) = Net income (loss) attributable to owners of parent − one-off profit (loss) Copyright © 2020 INPEX CORPORATION. All rights reserved. 22
Slide 24: Analysis of Impact of One-off Profit (Loss)
Analysis of Impact of One-off Profit (Loss) (Billions of Yen) (億円) 50 Prelude FLNG Project 36.4 (130.8) Eagle Ford (33.6) Lucius Oil Field (18.9) Bayu-Undan Gas-Condensate Field (8.9) 0 (50) (120.7) (100) 14.0 29.7 (2.7) (5.9) (150) (192.4) (200) Income before Impairment loss Tax effect on Refinance
Slide 25: Balance Sheet
Balance Sheet Summary of financial information for Ichthys downstream JV (100% basis, including the Company’s equity share 66.245%) December 2019 June 2020 Change % Change (Billions of yen) (Billions of yen) • Current assets : 81.0 Current assets 419.8 512.2 92.4 22.0% • Fixed assets : 3,630.2 • Tot
Slide 26: Statement of Cash Flows
Statement of Cash Flows 2Q FY2020 (Reference) (Billions of Yen) (January - June ’20) April - September ’19 Income before income taxes (43.1) 271.1 Depreciation and amortization 88.8 83.0 Impairment loss 192.4 - Recovery of recoverable accounts under production sharing (capital expenditures) 14.8 19.
Slide 27: Consolidated Financial Forecasts for the year ending December 31, 2020
Consolidated Financial Forecasts for the year ending December 31, 2020 Daisuke Yamada Director, Managing Executive Officer, Finance & Accounting
Slide 28: Differences between Forecasts and Actual Results for the six months ended June 30, 2020
Differences between Consolidated Financial Forecasts and Actual Results for the six months ended June 30, 2020 Assumptions 1st half (May 12, 2020) (Previous Forecasts) Crude oil price (Brent) (US$/bbl) 40.4 Exchange rate (yen/US$) 109.5 1st half (August 6, 2020) (Actual Results) Crude oil price (B
Slide 29: Revisions of Financial Forecasts for the year ending December 31, 2020
Revisions of Financial Forecasts for the year ending December 31, 2020 Assumptions (May 12, 2020) 1st half (Jan-Jun) 2nd half (Jul-Dec) Full year Crude oil price (Brent) (US$/bbl) 40.4 30.0 35.2 Exchange rate (yen/US$) 109.5 110.0 109.7 (August 6, 2020) 1st half (Jan-Jun) 2nd half (Jul-Dec) Full y
Slide 30: Analysis of Income before One-off Profit (Loss) Increase
Analysis of Income before One-off Profit (Loss) Increase (Billions of Yen) * Income before one-off profit (loss) = Net income (loss) attributable to owners of parent − one-off profit (loss) Crude Oil Price (Brent) Assumptions (US$/bbl) 1st half 2nd half Full year Exchange Rate Assumptions (Yen/US$)
Slide 31: Analysis of Impact of One-off Profit (Loss)
Analysis of Impact of One-off Profit (Loss) (Billions of Yen) * Income before one-off profit (loss) = Net income (loss) attributable to owners of parent − one-off profit (loss) Prelude (130.8) Eagle Ford (33.6) Lucius (18.9) Bayu-Undan (8.9) 1st half 14.0 2nd half (8.0) Copyright © 2020 INPEX CORPOR