Slide 1: Financial Results for the year ended March 31, 2018
INPEX CORPORATION Financial Results for the year ended March 31, 2018 May 11, 2018
Slide 2: Agenda
Agenda Corporate Overview Vision 2040, Medium‐term Business Plan 2018‐ 2022 and FY 2019/03 Outlook Consolidated Financial Results for the year ended March 31, 2018 Consolidated Financial Forecasts for the year ending March 31, 2019 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 Toshiaki Kitamura Representative Director, President & CEO
Slide 5: FY 2018/03 Financial Results Highlights
FY 2018/03 Financial Results Highlights ‐ Financial Results (FY2018/03) • Net sales ¥933.7 billion (6.8% increase YoY) Financial Results • Net income ¥40.3 billion (12.6% decrease YoY) and Forecasts ‐ Financial Forecasts (FY2019/03) • Net sales ¥860.0 billion • Net income ¥48.0 billion ‐ Ichthys LNG
Slide 6: FY 2018/03 Corporate Highlights
FY 2018/03 Corporate Highlights Sustainable Growth of Oil and Natural Gas E&P Activities Sailed away FLNG facility for Prelude FLNG Project (June) Entered into agreement to extend duration of production sharing agreement for ACG Oil Fields (September) Awarded exploration license PL767 (Septemb
Slide 7: Ichthys LNG Project Overview
Ichthys LNG Project Overview Current progress： Proved reserves Preparation for production startup mostly complete. Approx. 930 million BOE (based on INPEX’s The Project will soon commence production from the participating interest of 62.245%) wellhead, and thereafter begin the production a
Slide 8: Ichthys LNG Project Offshore facilities / Production wells
Ichthys LNG Project Offshore facilities / Production wells FPSO CPF FLOTEL ※ FPSO: Floating Production Storage and Offloading FPSO undergoing commissioning work CPF undergoing commissioning work (Ichthys Field, March 2018) (Ichthys Field, November 2017) Key Milestones (2017~) Achieved CPF/FPSO sail
Slide 9: Ichthys LNG Project Onshore facilities
Ichthys LNG Project Onshore facilities Operations Complex & Utilities Annex Ground Flares Inlet Facilities LPG Tanks Utilities Power Plant 1st Train LNG Tanks 2nd Train Condensate Tanks Onshore Facilities (Darwin, January 2018) Key Milestones (2017~) Achieved Major construction work on main faciliti
Slide 10: Ichthys LNG Project Exploration Blocks in Vicinity of Ichthys Field
Ichthys LNG Project Exploration Blocks in Vicinity of Ichthys Field Participating interests held in 22 exploration blocks in vicinity of the Ichthys Field, including the newly awarded WA‐533‐P. To date, gas discoveries have been made in the Crown, Lasseter, Mimia and Burnside formations, etc. Thes
Slide 11: Abadi LNG Project
Abadi LNG Project Abadi Gas Field superimposed on map of Greater Tokyo (image) Location of Masela Block INPEX commenced Pre‐FEED work based on an onshore LNG development scheme with an annual LNG production capacity of 9.5 million tons in March 2018. The Abadi LNG Project was listed by the Indon
Slide 12: Abu Dhabi Oil Fields
Abu Dhabi Oil Fields Abu Dhabi Offshore Oil Fields Completion of concession acquisition and extension negotiations conducted with Abu Dhabi authorities over many years Satah Oil Field Upper / Lower Zakum Oil Fields January 2014: Umm Al‐Dalkh Oil Field Extended Concession for Upper Zakum Oil Abu
Slide 13: FY 2018/03 Topics of upstream business
FY 2018/03 Topics of upstream business Progress of upstream business (Second‐half FY 2018/03) ナダ D.R. Congo: The United Mexican States: Kingdom of Norway: Offshore D.R. Congo Block Block 22 in Deep‐water Sector of PL950 in Western Barents Sea (In Production) Southern Gulf of Mexico (Salina Offshore
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 Geothermal power generation business Sarulla Geothermal IPP Project Natural Gas Sales Indonesia: Sarulla Geothermal FY 2018/03: approx. 2,120 million m3 * Independent Power Producer (IPP) Project The
Slide 15: Net Production (FY 2018/03)
Net Production* (FY 2018/03) 600 521 Production increase factor 500 5% 450 • Production restart of 6% Kashagan Project 400 (Thousand BOED) 52% 300 57% Production decrease factors • Expiration of Offshore 200 6% Mahakam Block PSC • Sale of all shares in INPEX 10% NATUNA, Ltd. 100 31% 20% 0 5% 7% Mar.
Slide 16: Production Cost, Proved + Probable Reserves and Reserve Indices
Production Cost, Proved + Probable Reserves* and Reserve Indices 6,000 Reserves to 5,316 production ratio**** Production Cost per BOE (Excl. Royalty)***** 4,970 5,000 4,693 15.0 4,477 1,459 12.0 4,044 4,000 1,705 1,389 US$/BOE 9.0 7.6 1,945 Million BOE 5.9 5.9 6.0 1,610 3,000 3.0 32.4 years 0.0 2,00
Slide 17: Vision 2040, Medium-term Business Plan 2018-2022 and FY 2019/03 Outlook
Vision 2040, Medium‐term Business Plan 2018‐2022 and FY 2019/03 Outlook Toshiaki Kitamura Representative Director, President & CEO
Slide 18: Vision 2040 Three Business Targets
Note: Announced on May 11, 2018 Delivering tomorrowʼs energy solutions Vision 2040 Three Business Targets ① Sustainable Growth of Oil and ② Development of Global Gas ③ Reinforcement of Natural Gas E&P Activities Value Chain Business Renewable Energy Initiatives A top 10 A key player 10% in natural g
Slide 19: Medium-term Business Plan 2018-2022
Note: Announced on May 11, 2018 Medium‐term Business Plan 2018‐2022 Cash Allocation during the 5‐Year Period* Main Business Initiatives Cash In Cash Out (1) Oil & Natural Gas (2) Global Gas Value Chain Upstream ・ Achieve annual gas supply volume of 2.5 billion m3 in Japan ・ Conduct LNG/gas marketing
Slide 20: FY 2019/03 Outlook
FY 2019/03 Outlook FY 2019/03 Business Plan Investment Plan Major Projects Net Production Development*: ¥326 billion Production startup and Scheduled production: shipmemt from Ichthys Exploration: ¥13 billion LNG Project 440 thousand BOED Other capital expenditures: (10 thousand BOED Com
Slide 21: Financial Results for the year ended March 31, 2018
Financial Results for the year ended March 31, 2018 Masahiro Murayama Director, Senior Managing Executive Officer Senior Vice President, Finance & Accounting
Slide 22: Highlights of the Consolidated Financial Results
Highlights of the Consolidated Financial Results for the year ended March 31, 2018 Apr. ‘16 ‐ Mar. ‘17 Apr. ‘17 ‐ Mar. ‘18 Change %Change Net sales (Billions of yen) 874.4 933.7 59.2 6.8% Crude oil sales 617.1 710.2 93.0 15.1% Natural gas sales (including LPG) 242.5 208.1 (34.4) (14.2%) Others 14.6
Slide 23: Crude Oil Sales
Crude Oil Sales Apr. ‘16 ‐ Mar. ’17 Apr. ‘17 ‐ Mar. ’18 Change %Change Net sales (Billions of yen) 617.1 710.2 93.0 15.1% Sales volume (thousand bbl) 122,207 112,882 (9,325) (7.6%) Average unit price of overseas 46.41 56.30 9.89 21.3% production ($/bbl) Average unit price of domestic 35,997 42,143 6
Slide 24: Natural Gas Sales (excluding LPG)
Natural Gas Sales (excluding LPG) Apr. ‘16 ‐ Mar. ‘17 Apr. ‘17 ‐ Mar. ‘18 Change %Change Net sales (Billions of yen) 235.7 202.0 (33.7) (14.3%) Sales volume (million cf) 342,994 264,816 (78,178) (22.8%) Average unit price of overseas 5.19 5.04 (0.15) (2.9%) production ($/thousand cf) Average unit pr
Slide 25: Statement of Income
Statement of Income Decrease in sales volume : (88.7) (Billions of Yen) Apr. ‘16‐ Mar. ’17 Apr. ‘17 ‐ Mar. ’18 Change %Change Increase in unit price : +127.9 Exchange rate Net sales 874.4 933.7 59.2 6.8% (Depreciation of yen) : +19.3 Others : 0.6 Cost of sales 453.8 498.0 44.1 9.7% Cost of sales for
Slide 26: Analysis of Net Income Decrease
Analysis of Net Income Decrease (Billions of Yen) (億円) 120 19.3 0.6 Main factors 37.3 0.4 0.5 100 ・An investment in the consolidated subsidiary by non‐controlling 127.9 interests 80 ・Posting impairment loss (Shale Gas Project in Canada) 60 46.1 (44.1) 52.4 40.3 40 Main factors ・Depreciation of yen 2
Slide 27: Balance Sheet
Balance Sheet Cash and deposits : (376.5) (Billions of yen) Mar. ’17 Mar. ’18 Change %Change Current assets 942.9 469.5 (473.3) (50.2%) Tangible fixed assets Investments in Ichthys LNG 1,928.5 2,044.6 116.0 6.0% Project and others Intangible assets 521.2 541.5 20.2 3.9% Summary of financial informat
Slide 28: Statement of Cash Flows
Statement of Cash Flows (Billions of Yen) Apr. ‘16 ‐ Mar. ’17 Apr. ‘17 ‐ Mar. ‘18 Change %Change Income before income taxes 327.5 307.2 (20.2) (6.2%) Depreciation and amortization 91.1 92.8 1.6 1.8% Impairment loss 6.3 79.9 73.6 ‐ Recovery of recoverable accounts under production sharing (capital ex
Slide 29: Consolidated Financial Forecasts for the year ending March 31, 2019
Consolidated Financial Forecasts for the year ending March 31, 2019 Masahiro Murayama Director, Senior Managing Executive Officer Senior Vice President, Finance & Accounting
Slide 30: Consolidated Financial Forecasts for the year ending March 31, 2019
Consolidated Financial Forecasts for the year ending March 31, 2019 1st Half 2nd Half Full year Brent oil price ($/bbl) 65.0 65.0 65.0 Average exchange rate (¥/$) 105.0 105.0 105.0 Mar. ‘18 Mar. ‘19 Full Year (Actual) (Forecasts) Change % Change Net Sales (Billions of yen) 933.7 860.0 (73.7) (7.9%)
Slide 31: Sales and Investment Plan for the year ending March 31, 2019
Sales and Investment Plan for the year ending March 31, 2019 Mar. ’18 Mar. ‘19 (Actual) (Forecasts ) Change % Change Crude oil (thousand bbl)1 112,882 98,604 (14,278) (12.6%) Sales Volume Natural gas (million cf)2 264,816 284,278 19,462 7.3% Overseas 185,573 201,982 16,408 8.8% 79,243 82,297 3,053 J
Slide 32: Net Income Sensitivities
Net Income Sensitivities Sensitivities of crude oil price and foreign exchange fluctuation on consolidated net income attributable to owners of parent for the year ending March 31, 2019 (Note 1) (Billions of yen) Brent Crude Oil Price; $1/bbl increase (decrease) (Note 2) (Note 4) +1.6 (‐1.6) E