Inpex Corporation · TSE:1605
Inpex — Investor Day (November 2023)
45 slides from Inpex's investor day presentation, Nov 27, 2023
Slide 1: Investor Day 2023
Investor Day 2023 November 27, 2023
Slide 2: Investor Day 2023 program
Investor Day 2023 Date and time: Monday, November 27, 2023; 14:30 (JST) start, 17:35 (JST) close Venue: Bellesalle Yaesu (and live-streamed online in both Japanese/English) Time Program Speakers 14:30-14:35 Opening Remarks Representative Director, President & CEO Takayuki Ueda 14:35-14:50 Ichthys LN
Slide 3: Ichthys LNG Project
Ichthys LNG Project Senior Managing Executive Officer, Senior Vice President, Oceania Projects Hitoshi Okawa
Slide 4: History of the Project
History of the Project 199 200 200 201 8 鉱区取得 0 試掘井にて 8 LNGプラント 2FID ガス胚胎 建設地を 確認 ダーウィに 決定 Drilled Exploration/ Appraisal wells Construction 1998 2000 2008 2012 2018 2023 Permit Gas discovery Select Darwin FID Commencement Present Award as the location for of the production 201 LNG Facility 201 202
Slide 5: Current status of Ichthys Project
Current status of Ichthys Project Aim to increase the LNG production capacity for stable production of 9.3million tons per year • Improvement on the equipment that constrains facility capacity – Upgrading cooling systems at onshore LNG facilities – Countermeasures for the vibration of equipment • Co
Slide 6: Growth Strategy - Sustaining Stable Gas Supply
Growth Strategy -Sustaining Stable Gas Supply- Ichthys Ichthys development project Gas & Condensate Field • Drilling additional production wells • Confirm good reservoir property of deeper reservoir AC/RL7(Cash Maple) • Construction of additional equipment at offshore facility for the stable product
Slide 7: Climate Change Strategy
Climate Change Strategy As a part of our challenge to achieve net zero emissions by 2050, Reservoir Onshore Offshore we aim to supply a stable clean energy. In addition, as a responsibility to continue operations in Australia, we will promote decarbonization initiatives. Breakdown of Ichthys project
Slide 8: INPEX Brand
INPEX Brand Employer of Choice : Be conscious of continuous employment and a desirable workplace Partner of Choice：Be the company of choice for governments, industries and stakeholders Strengthening relationships, support for strengthening ESG, etc. Contribution to Local Communities １）Reconciliation
Slide 9: Energy Business and Investment Environment in Australia
Energy Business and Investment Environment in Australia Reform of Petroleum Energy Market Australian Domestic Environment Plan Safeguard Intervention by Gas Security （EP） Mechanism Resource Rent Tax Australian Mechanism government CO2 Various policy changes by the Australian government and others ar
Slide 10: Abadi LNG Project
Abadi LNG Project Managing Executive Officer Senior Vice President, Asia Projects Akihiro Watanabe
Slide 11: Abadi LNG Project Outline
Abadi LNG Project Outline Competitive and clean project through comprehensive cost optimization and CCS Investability to be maintained/increased through FEED period Project Economics Stable supply of clean LNG New partners Aim to achieve an IRR LNG: 9.5 MTPA Contribution to energy security in in
Slide 12: Project Concept
Project Concept Floating Production, Storage and Offloading Facility（FPSO) Onshore LNG Plant (OLNG) • Receiving reservoir gas from SURF • Dry gas receiving from FPSO via GEP • Condensate stabilization and offloading to tankers • Acid gas removal, dehydration and mercury removal • Dehydration, dew po
Slide 13: Way Forward
Way Forward Drive the project with partners toward early production start while keeping due consideration for the project economics ～ (Early) Production start On-site survey EPC implementation ～Final Investment Decision (Mid 2020s) (Schedule and cost management) Present Engineering (G&G survey
Slide 14: Toward FID and Production Start (1/2)
Toward FID and Production Start (1/2) Until FID Until Production start Item Deliverable/target (Engineering phase) (Construction phase) On- / Off-shore G&G surveys for plant site Incorporating the detailed data into ー G&G Surveys and pipeline route FEED Optimize engineering for Engineering / Design
Slide 15: Toward FID and Production Start (2/2)
Toward FID and Production Start (2/2) Until FID Until Production start Item Deliverable/target (Engineering phase) (Construction phase) Contracts with gas Long-term contracts with Negotiation on price, quantity, contract ー buyers credible buyers period and so forth Financing for LNG facilities Secur
Slide 16: Abadi Gas Value Chain
Abadi Gas Value Chain Upstream Mid/Downstream Sales Stable supply of natural gas/LNG (Contribution to energy security) Abadi Gas Field Onshore LNG Stable supply for Indonesia, Japan LNG production and Asian countries Natural gas production Clean LNG Ammonia Plant CCS CCS for CO2 from third parties A
Slide 17: Renewable Energy Business
Renewable Energy Business Becoming a Pioneer of Energy Transformation Director, Senior Executive Vice President, Senior Vice President, Renewable Energy & New Business Kenji Kawano
Slide 18: Initiatives for Renewable Energy Business
Initiatives for Renewable Energy Business Value up in renewable energy business Business expansion in core regions Synergies with upstream & green hydrogen In Australia, agreed to a strategic collaboration with Enel, the business world's largest renewable energy company. Promoting decarbonizatio
Slide 19: INPEX's Renewable Energy Projects
INPEX’s Renewable Energy Projects Breakdown Net Generation Capacity (As of Oct 31, 2023) (Unit: MW) Up by PV 37% 138 628 Onshore Wind TOTAL Offshore MW 38 Wind 458 500 628MW 333 MW MW Geothermal 119 July 2023 October 2023 MTP Increased through collaboration with EGP Enhanced involvement in solar
Slide 20: Renewable Energy Projects (net capacity in brackets)
Renewable Energy Projects (net capacity in brackets) Europe (333MW) Hywind Tampen Luchterduinen Borssele III/IV Moray East Offshore Wind Offshore Wind Offshore Wind Offshore Wind Australia Indonesia (171MW) (113MW) Sarulla Muara Laboh Geothermal Rantau Dedap Geothermal Geothermal Flat Rock Japan Bun
Slide 21: Overview of Enel Green Power Australia
Overview of Enel Green Power Australia EGPA Assets Enel Green Power Solar Project World’s largest renewable Wind Project energy company in Italy Capacity Flat Rocks 1 21 countries (Under Construction) Capacity: 75.6MW 12,000 sites 60GW Cohuna (Under Construction) Enel Green Power Australia Capacity:
Slide 22: Higher Return Through EGPA
Higher Return Through EGPA Initiatives for higher profitability Expansion of scale Selection of Value creation JPY100 billion investment, more than 2 GW profitable projects outside of generation by 2030 Pursue Develop & Sell Competitiveness in procurement through Investment decisions made on
Slide 23: Reference (as of Oct 31, 2023)
Reference (as of Oct 31, 2023) Projects Country Status Capacity (MW) Net Capacity (MW) INPEX Joetsu PV Japan Operation 4.0 4.0 Oyasu geothermal Japan Construction 15.0 6.4 Goto Offshore Wind Japan Construction 16.8 -(*) Sarulla Geothermal Indonesia Operation 330.0 60.2 Muara Laboh Geothermal Indones
Slide 24: Hydrogen and CCUS Business
Hydrogen and CCUS Business Becoming a Pioneer of Energy Transformation Director, Managing Executive Officer, Senior Vice President, Hydrogen & CCUS Development Toshiaki Takimoto
Slide 25: INPEX Vision / Target around 2030
INPEX Vision / Target around 2030 5 Net Zero Business Oil & Gas business Expand each business at an accelerated Maintain stable energy supply on the pace and become recognized as a basis of thoroughly making the credible key player business cleaner Target of Hydrogen/CCUS CCS・CCUS e-methane Hydrogen
Slide 26: Why Hydrogen & CCUS?
Why Hydrogen & CCUS? Hydrogen & CCUS contribution to global CO2 reduction in 2050 7% 15% 12% 20% approx. By H2 and CCUS 30Gt-CO2 24% 20% H2 2% 6% CO 2 14% Total CO2 Avoided Demand Technology Bioenergy Other Electrifications Other fuel shifts Hydrogen CCUS Reduction Performance renewables Note: INPEX
Slide 27: INPEX Activities Hydrogen/Ammonia/e-methane
INPEX Activities Hydrogen/Ammonia/e-methane US Japan Blue Ammonia Project in Houston Ship Channel Integrated Demonstration of Blue Hydrogen & Ammonia Production and Usage in Green Hydrogen Project in South Texas Kashiwazaki City, Niigata (NEDO/JOGMEC) CO2-EOR demonstration test in Agano City
Slide 28: Kashiwazaki Integrated Demonstration Project
INPEX Activities - 1 Kashiwazaki Integrated Demonstration Project Sep. 2023 Hydrogen Injection/Observation/Production Wells CO2 Capture Production CO2 Ammonia Compression Production Control Room Hydrogen Power Feed Gas Generation Receiving Image Overview Schedule Demonstration project of blue Hydr
Slide 29: Nagaoka Methanation Pilot Project
INPEX Activities - 2 Nagaoka Methanation Pilot Project Sep. 2023 Liquified H2 Methanation Reactor Area Utilities Area Storage & Supply Plant Area Ground Flare CO2 Compressor Admin Building Southern Gate Liquified CO2 200m Storage & Supply Area Termination of Connecting Piping (4mx6m) Koshijihara Pla
Slide 30: Blue Ammonia Project in Houston Ship Channel
INPEX Activities - 3 Blue Ammonia Project in Houston Ship Channel ：This project ：Other projects INPEX LSB AL VMH Overview Schedule INPEX, Air Liquide Group(AL), LSB Industries, Inc.(LSB), and Vopak Moda Houston Targeted to produce more than 1.1MTPA of LLC(VMH) have agreed to collaborate on the p
Slide 31: Challenges for Commercialization
Challenges for Commercialization Company’s Effort • Production cost reduction Procure cheaper and cleaner H2 • Technology development of efficient H2 production facilities • Development of efficient CO2 removal equipment • Establish value chain and secure off takers • Secure CO2 storage site Regul
Slide 32: Financial Results for the nine months ended September 30, 2023 & Forecasts for FY2023
Financial Results for the nine months ended September 30, 2023 & Financial Forecasts for FY2023 Director, Managing Executive Officer, Senior Vice President, Finance & Accounting Daisuke Yamada
Slide 33: 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 34: Highlights of the Consolidated Financial Results for the nine months ended September 30, 2023
Highlights of the Consolidated Financial Results for the nine months ended September 30, 2023 3Q FY2022 3Q FY2023 Change % Change Average crude oil price (Brent) ($/bbl) 102.48 81.94 (20.54) (20.0%) 9.94yen 7.7% Average exchange rate (¥/$) 128.30 138.24 depreciation depreciation 132.70 16.88yen 12.7
Slide 35: Analysis of Net Income (3Q FY2022 vs 3Q FY2023)
3Q FY2023 Analysis of Net Income (3Q FY2022 vs 3Q FY2023) (Billions of Yen) +13.7 Increase in exploration expenses: (0.8) Increase in provision for explorations Main factors for change: 3Q FY2022 Eagle Ford: +18.2 (other expense): (9.6) Decrease in divestment gain 3Q FY2023 Prelude: (75.6) (Lucius,
Slide 36: FY2023 Revision of Financial Forecasts
FY2023 Revision of Financial Forecasts Financial Forecasts for the year ending December 31, 2023 Previous forecasts Revised forecasts Change % Change (August 9, 2023) (November 9, 2023) 80.0 82.7 Crude oil price (Brent) （US$/bbl） 1st half (Jan-Jun)：79.9 1st half (Jan-Jun)：79.9 2.7 3.4% 2nd half (J
Slide 37: FY2023 Financial Forecasts Analysis of Net Income
FY2023 Financial Forecasts Analysis of Net Income (Previous forecasts vs Revised forecasts) Market factors Business Activities factors Other factors (Billions of Yen) +22.7 Billions of Yen +3.4 Billions of Yen (6.1) Billions of Yen Market factors 350 Crude Oil Price(Brent) $80.0 → $82.7 3.4 1.0 11.7
Slide 38: FY2023 Cash Flow Forecast
FY2023 Cash Flow* Forecast Previous forecasts Previous forecasts Previous forecasts Revised forecasts Change (Billions of Yen) (February 9, 2023) (May 10, 2023) (August 9, 2023) (November 9, 2023) Development expenditure (Oil & Gas Business) 349.0 342.0 347.0 213.0 (134.0) Development expenditure (5
Slide 39: ROIC by segment
ROIC by segment Consolidated financial O&G Domestic O&G Overseas Ichthys O&G Overseas Others Others statements Net income attributable to owners 45.9 234.1 57.6 (13.9) 320.0 of parent（billions of yen） Previous forecasts ROIC 18.0% 8.0% 6.8% (2.4%) 7.7% (August 9, 2023) Invested capital*¹（billions of
Slide 40: Appendix
Appendix INPEX
Slide 41: Balance Sheet
Balance Sheet December 2022 September 2023 Change % Change Summary of financial information for Ichthys (Billions of yen) downstream Incorporated Joint Venture (100% Current assets 729.4 966.8 237.4 32.5% basis, including the Company’s equity share 66.245%) Tangible fixed assets 2,473.1 2,568.6 95.5
Slide 42: Statement of Income
Statement of Income 3Q FY2022 3Q FY2023 Change % Change (Billions of Yen) Increase in sales volume: +63.0 Net sales 1,698.7 1,601.8 (96.9) (5.7%) Decrease in unit price: (262.5) Exchange rate: +102.7 Cost of sales 681.3 654.5 (26.8) (3.9%) Others : (0.1) Gross profit 1,017.3 947.2 (70.0) (6.9%) Cost
Slide 43: 3Q FY2023 Net Sales
3Q FY2023 Net Sales (Billions of Yen) Product 3Q FY2022 3Q FY2023 Change % Change Crude Oil 4.5 3.5 (1.0) (23.0%) Natural Gas (excluding LPG) 143.2 180.4 37.1 25.9% Japan LPG 0.0 - (0.0) (100.0%) Other 7.1 5.6 (1.4) (20.7%) Total 154.9 189.5 34.6 22.3% Crude Oil 156.3 148.1 (8.2) (5.3%) Natural Gas
Slide 44: 3Q FY2023 Sales Volume
3Q FY2023 Sales Volume Product 3Q FY2022 3Q FY2023 Change % Change Crude Oil (thousand bbl) 452 322 (130) (28.8%) Natural Gas (excluding LPG) Japan (million cf) 71,139 71,654 515 0.7% LPG (thousand bbl) 1 - (1) (100.0%) Crude Oil (thousand bbl) 11,357 13,220 1,862 16.4% Australia & Natural Gas (excl
Slide 45: 3Q FY2023 Net Production Volume
3Q FY2023 Net Production Volume* Product 3Q FY2022 3Q FY2023 Change % Change Crude Oil (thousand bbl) 727 694 33 4.5% Natural Gas (excluding LPG) 27,744 26,269 1,475 5.3% Japan (million cf) Iodine (ton) 412 410 2 0.6% Electric power generation 164 158 6 3.8% (million KWh) Australia & Crude Oil (thou