Inpex Corporation · TSE:1605

Inpex — H1 FY2014 Earnings Presentation

27 slides from Inpex's earnings presentation, Nov 10, 2014

  1. Slide 1: Financial Results for the Six Months ended September 30, 2014

    INPEX CORPORATION Financial Results for the Six Months ended September 30, 2014 November 10, 2014

  2. Slide 2: Agenda

    Agenda 1. Corporate Overview Toshiaki Kitamura Representative Director, President & CEO 2. Financial Results for the six months ended September 30, 2014 Masahiro Murayama Director, Managing Executive Officer Head of Finance & Accounting Division 1

  3. 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

  4. Slide 4: Corporate Overview

    Corporate Overview Toshiaki Kitamura Representative Director, President & CEO

  5. Slide 5: First-Half FY 2014 Corporate Highlights (1/2)

    First‐Half FY 2014 Corporate Highlights (1/2) ■ Half‐year Results ‐ Net sales ¥663.1billion (1.9% increase YoY) (Apr.2014 ‐Sep.2014) ‐ Net income ¥88.7billion (10.8% increase YoY) ‐ Development works making steady progress  In Apr. 2014, ceremony of first dry dock hull block erection for CPF (Centr

  6. Slide 6: First-Half FY 2014 Corporate Highlights (2/2)

    First‐Half FY 2014 Corporate Highlights (2/2) Acquisition of new exploration blocks  WA‐502‐P offshore Western Australia (May)  WA‐504‐P offshore Western Australia (June) Progress of existing projects  Acquired Additional Interest in Lucius Deepwater US Gulf of Mexico Project (July)  Commencemen

  7. Slide 7: Ichthys LNG Project (1/3)

    Ichthys LNG Project (1/3)  Proved reserves: Approx. 1,030 Fabrication of onshore LNG plant modules (Sep/2014, Thailand) million BOE (Based on INPEX’s participating interest of 66.07%*)  Production volume (expected): ‐8.4 million t/y of LNG ‐Approx. 1.6 million t/y of LPG ‐Approx. 100,000 bbl/d of

  8. Slide 8: Ichthys LNG Project (2/3) Offshore Facilities

    Ichthys LNG Project (2/3) Offshore Facilities Image of FPSO Fabrication of X’mas tree Construction of FPSO (Sep/2014, UK) (Sep/2014, Korea) Major works for Offshore Facilities done since FID and plans for 2015 2012 2013 2014 2015 Detailed engineering /procurement Manufacturing/ coating of linepipes

  9. Slide 9: Ichthys LNG Project (3/3) Onshore Facilities

    Ichthys LNG Project (3/3) Onshore Facilities Onshore LNG plant site in Darwin Jun/2009 Sep/2014 May/2012 Construction of power plant (Oct/2014, Darwin) Major works for Onshore Facilities done since FID and plans for 2015 2012 2013 2014 2015 Detailed engineering /procurement Construction of accommoda

  10. Slide 10: Abadi LNG Project

    Abadi LNG Project Abadi Gas Field‐Under review for subsequent development with the huge potential reserves  Initiatives for gas reserves and subsequent development ‐ 3 delineation wells and 1 exploratory well had been drilled from June 2013 till June 2014 ‐ Evaluation works on the outcome of the dr

  11. Slide 11: First-Half FY 2014 Topics (1/2)

    First‐Half FY 2014 Topics (1/2) Projects coming on stream Production facility of Lucius field Location ■Lucius Field in U.S. Gulf of Mexico ■Umm Lulu Oil Field in ADMA – In July 2014, acquired an additional participating block, Abu Dhabi interest in the Lucius deepwater US Gulf of Mexico – INPEX’s p

  12. Slide 12: First-Half FY 2014 Topics (2/2)

    First‐Half FY 2014 Topics (2/2) Discovery of resources from existing Exploration Projects and acquisition of new Projects ナダ Vietnam:Blocks 05‐1b and 05‐1c Australia:WA‐274‐P Brazil:BM‐ES‐23 – INPEX’s share: 30%, Idemitsu: – INPEX’s share:20%, Chevron: – INPEX’s share:15%, Petrobras: 35%(Operator),

  13. Slide 13: Net Production (April - September 2014)

    Net Production* (April – September 2014) 500 403 395 400 5% 5% Main decreasing factor (MBOED) 41% ・ Shutdown of the Van Gogh Oil Field due to 300 42% the work over operation of the FPSO ( ‐5MBOED) ‐ Decrease in production in the Bayu‐Undan 200 7% 6% Unit due to the periodic maintenance ( ‐3MBOED) 10

  14. Slide 14: Financial Results for the six months ended September 30, 2014

    Financial Results for the six months ended September 30, 2014 Masahiro Murayama Director, Managing Executive Officer Head of Finance & Accounting Division

  15. Slide 15: Highlights of the Consolidated Financial Results

    Highlights of the Consolidated Financial Results for the six months ended September 30, 2014 Apr.‐Sep. ’13 Apr.‐Sep. ’14 Change %Change Net Sales (Billions of yen) 650.4 663.1 12.6 1.9% Crude Oil Sales 426.7 437.6 10.8 2.5% Natural Gas Sales (including LPG) 214.8 216.7 1.9 0.9% Others 8.8 8.6 (0.1)

  16. Slide 16: Crude Oil Sales

    Crude Oil Sales Apr.‐Sep. ‘13 Apr.‐Sep. ‘14 Change %Change Net Sales (Billions of yen) 426.7 437.6 10.8 2.5% Sales volume (thousand bbl) 40,578 40,048 (530) (1.3%) Average unit price of overseas 106.21 105.75 (0.46) (0.4%) production ($/bbl) Average unit price of domestic production(¥/kl) 66,878 71,

  17. Slide 17: Natural Gas Sales (excluding LPG)

    Natural Gas Sales (excluding LPG) Apr.‐Sep. ‘13 Apr.‐Sep. ‘14 Change %Change Net Sales (Billions of yen) 203.9 205.8 1.8 0.9% Sales volume (million cf) 159,671 152,056 (7,614) (4.8%) Average unit price of overseas production ($/thousand cf) 12.83 12.78 (0.05) (0.4%) Average unit price of domestic sa

  18. Slide 18: Analysis of Net Sales Increase

    Analysis of Net Sales Increase Crude Oil (5.5) (Billions of Yen) Natural Gas (including LPG) (10.3) 700 23.8 4.9 (0.1) 600 (15.9) Crude Oil +17.1 500 Natural Gas (including LPG) +6.6 400 Crude Oil (0.7) 650.4 Natural Gas (including LPG) +5.6 663.1 300 200 100 0 Net Sales Decrease in Increase in Exch

  19. Slide 19: Statement of Income

    Statement of Income Crude Oil sales : 437.6 (Billions of Yen) Apr.‐Sep. ’13 Apr.‐Sep. ’14 Change %Change (Change) +10.8 Net Sales 650.4 663.1 12.6 1.9% Natural Gas sales* : 216.7 (Change) +1.9 Cost of Sales 249.2 257.8 8.5 3.4% Exploration expenses 16.6 15.5 (1.1) (7.0%) Cost of sales for Crude Oil

  20. Slide 20: Other Income/Expenses

    Other Income/Expenses (Billions of Yen) Apr.‐Sep. ’13 Apr.‐Sep. ’14 Change %Change Other income 18.3 30.1 11.8 64.3% Interest income 8.7 5.3 (3.3) (38.7%) Dividend income 2.1 2.2 0.0 2.8% Equity in earnings of affiliates ‐ 7.9 7.9 ‐ Foreign exchange gain ‐ 5.3 5.3 ‐ Other 7.3 9.2 1.8 25.4% Other exp

  21. Slide 21: Analysis of Net Income Increase

    Analysis of Net Income Increase Main Factors; (Billions of Yen) ‐ Equity in earnings of affiliates +11.4 ‐ Foreign exchange gain +6.5 120 100 19.2 23.8 (0.1) (7.6) 80 (1.5) (8.5) (2.6) 4.9 (2.7) 60 (15.9) 88.7 40 80.0 20 0 Net Income Decrease in Increase in Exchange Rate Others Increase in Increase

  22. Slide 22: Balance Sheet

    Balance Sheet (Billions of yen) Mar. ’14 Sep. ’14 Change %Change Available fund (Billions of yen) 1,350.4* Current assets 1,140.2 1,285.0 144.8 12.7% Breakdown • Cash and deposits : 775.3 Tangible fixed assets 951.7 1,183.5 231.7 24.3% • Long‐term time deposits : 247.4 • Marketable securities : 191.

  23. Slide 23: Statement of Cash Flows

    Statement of Cash Flows (Billions of Yen) Apr.‐Sep. ’13 Apr.‐Sep. ’14 Change %Change Income before income taxes and minority interests 350.6 368.4 17.8 5.1% Depreciation and amortization 23.9 25.6 1.6 7.0% Recovery of recoverable accounts under production 30.9 36.6 5.7 18.6% sharing (capital expendi

  24. Slide 24: Differences between Consolidated Financial Forecasts and Actual Results

    Differences between Consolidated Financial Forecasts and Actual Results for the six months ended September 30, 2014 ‐ Assumptions (August 6, 2014) 1st half (Previous Forecasts) Crude oil price (Brent) (US$/bbl) 107.4 Exchange rate (yen/US$) 101.1 (November 7, 2014) 1st half (Actual Results) Crude oi

  25. Slide 25: Revisions of Financial Forecasts for the year ending March 31, 2015

    Revisions of Financial Forecasts for the year ending March 31, 2015 ‐ Assumptions (August 6, 2014) 1st half 2nd half Full year Crude oil price (Brent) (US$/bbl) 107.4 105.0 106.2 Exchange rate (yen/US$) 101.1 100.0 100.5 (November 7, 2014) 1st half 2nd half Full year Crude oil price (Brent) (US$/bbl

  26. Slide 26: Net Income Sensitivities (1/2)

    Net Income Sensitivities (1/2) [As of May 9, 2014]  Sensitivities of crude oil price and foreign exchange fluctuation on consolidated net income for the year ending March 31, 2015 (Note 1) (The impact of Exchange Rate is shown in more detail below.) (Billions of yen) Crude Oil Price; $1/bbl increas

  27. Slide 27: Net Income Sensitivities (2/2)

    Net Income Sensitivities (2/2) Details on valuation for assets and liabilities denominated in the U.S. dollar  The assets and liabilities denominated in the U.S. dollar are practically balanced in the following chart.  However, some portion of assets is held as bonds denominated in the U.S. dollar

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