Inpex Corporation · TSE:1605
Inpex — H1 FY2017/03 Earnings Presentation
26 slides from Inpex's earnings presentation, Nov 14, 2016
Slide 1: Financial Results for the Six Months ended September 30, 2016
INPEX CORPORATION Financial Results for the Six Months ended September 30, 2016 November 14, 2016
Slide 2: Agenda
Agenda 1. Corporate Overview Toshiaki Kitamura Representative Director, President & CEO 2. Financial Results for the six months ended September 30, 2016 Masahiro Murayama Director, Senior Managing Executive Officer Senior Vice President, Finance & Accounting 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: First-Half FY 2017/03 Corporate Highlights (1/2)
First‐Half FY 2017/03 Corporate Highlights (1/2) Half‐year Results ‐ Net sales ¥389.6 billion (31.3% decrease YoY) (Apr.2016 ‐Sep.2016) ‐ Net income ¥15.7 billion (65.4 % decrease YoY) Major projects ‐ Ichthys LNG Project Continue onshore (LNG plant) / offshore (CPF/FPSO) development works in
Slide 6: First-Half FY 2017/03 Corporate Highlights (2/2)
First‐Half FY 2017/03 Corporate Highlights (2/2) Continuous Enhancement of E&P Activities Commenced exploratory drilling offshore Shimane and Yamaguchi Prefectures, Japan (June) Reached final investment decision to expand Tangguh LNG facility, Indonesia (July) Strengthening Gas Supply Chain Co
Slide 7: Ichthys LNG Project (1/3)
Ichthys LNG Project (1/3) Completion of off‐loading of the final onshore module Construction of LNG train (Aug/2016) (Aug./2016) Proved reserves: Approx. 930 million BOE (Based on INPEX’s participating interest of 62.245%) Production capacity : ‐Approx. 8.9 million t/y of LNG ‐Approx. 1.6 millio
Slide 8: Ichthys LNG Project (2/3) Offshore Facilities
Ichthys LNG Project (2/3) Offshore Facilities Major works for Offshore Facilities done since FID and plans up to the third quarter of 2017 2012 2013 2014 2015 2016 2017 (Jan.‐Sep.) Detailed engineering / procurement Installation of GEP Construction of CPF and FPSO / Preparation for ready for sail aw
Slide 9: Ichthys LNG Project (3/3) Onshore Facilities
Ichthys LNG Project (3/3) Onshore Facilities Major works for Onshore Facilities done since FID and plans up to the third quarter of 2017 2012 2013 2014 2015 2016 2017 (Jan.‐Sep.) Detailed engineering / procurement Fabrication of LNG plant modules Construction of storage tanks, power plant and produc
Slide 10: Abadi LNG Project
Abadi LNG Project Abadi gas field (image) Location of Masela Block Received the notice from Indonesian government instructing to re‐ propose a plan of development based on onshore LNG for the project in April 2016 Engaged in discussion with Indonesian government regarding the optimal development
Slide 11: Progress of major upstream business
Progress of major upstream business Kazakhstan: Kashagan Oil Field Commenced dispatch of crude oil in October 2016 following production restart To increase production capacity to a target level of approx. 370,000 bbl/d over the next year One of the worldʹs largest oil fields with estimated o
Slide 12: Strengthening Gas Supply Chain & Reinforcement of Renewable Energy Initiatives
Strengthening Gas Supply Chain & Reinforcement of Renewable Energy Initiatives Domestic natural gas business Geothermal power generation business Sarulla Geothermal IPP Project Toyama Line completed in June 2016 Indonesia: Sarulla Geothermal Commenced supply of natural gas to Nissan Independen
Slide 13: Net Production (April – September 2016)
Net Production* (April – September 2016) 600.0 524 503 500.0 5% 5% Main Factor ・ Increase in production at the ADMA (Thousand BOED) 400.0 Block in UAE 48% 52% 300.0 6% 5% 200.0 33% 100.0 36% 4% 5% 0.0 Sep. 15 Sep. 16 Japan Asia & Oceania Eurasia Middle East & Africa Americas * The production volume
Slide 14: Responding to Lower Oil Prices
Responding to Lower Oil Prices Mar.’15 & Mar.’16 investments versus Production cost per Barrel of Oil Equivalent*3 Mar.’17 & Mar.’18 investment forecasts 10,000 9,381 12.0 9,000 11.2 8,084 8,000 10.0 7,000 (US$ Millions) 8.0 6,020 (US$/BOE) 6,000 7.8 5,000 8,464 6.0 7,325 4,000 5,770 4.0 3,000 2,000
Slide 15: Financial Results for the six months ended September 30, 2016
Financial Results for the six months ended September 30, 2016 Masahiro Murayama Director, Senior Managing Executive Officer Senior Vice President, Finance & Accounting
Slide 16: Highlights of the Consolidated Financial Results
Highlights of the Consolidated Financial Results for the six months ended September 30, 2016 Apr.‐Sep. ‘15 Apr.‐Sep. ‘16 Change %Change Net sales (Billions of yen) 567.0 389.6 (177.3) (31.3%) Crude oil sales 396.8 275.8 (121.0) (30.5%) Natural gas sales (including LPG) 163.3 108.0 (55.2) (33.9%) Oth
Slide 17: Crude Oil Sales
Crude Oil Sales Apr.‐Sep. ‘15 Apr.‐Sep. ‘16 Change %Change Net sales (Billions of yen) 396.8 275.8 (121.0) (30.5%) Sales volume (thousand bbl) 57,805 59,970 2,164 3.7% Average unit price of overseas 56.52 43.08 (13.44) (23.8%) production ($/bbl) Average unit price of domestic production (¥/kl) 47,04
Slide 18: Natural Gas Sales (excluding LPG)
Natural Gas Sales (excluding LPG) Apr.‐Sep. ‘15 Apr.‐Sep. ‘16 Change %Change Net sales (Billions of yen) 157.7 104.3 (53.3) (33.8%) Sales volume (million cf) 160,634 165,837 5,204 3.2% Average unit price of overseas 7.23 4.83 (2.40) (33.2%) production ($/thousand cf) Average unit price of domestic 5
Slide 19: Analysis of Net Sales Decrease
Analysis of Net Sales Decrease (Billions of Yen) Crude Oil +14.9 700 Natural Gas (including LPG) +4.6 600 19.6 Crude Oil (37.7) Natural Gas (including LPG) (10.6) 500 400 (147.5) (48.4) (1.0) 300 Crude Oil (98.1) 567.0 Natural Gas (including LPG) (49.3) 200 389.6 100 0 Net sales Increase in Decrease
Slide 20: Statement of Income
Statement of Income (Billions of Yen) Apr.‐Sep. ’15 Apr.‐Sep. ’16 Change %Change Increase in sales volume : +19.6 Decrease in unit price : (147.5) Exchange rate Net sales 567.0 389.6 (177.3) (31.3%) (Appreciation of Yen) : (48.4) Others : (1.0) Cost of sales 273.5 210.1 (63.4) (23.2%) Gross profit 2
Slide 21: Other Income/Expenses
Other Income/Expenses (Billions of Yen) Apr.‐Sep. ’15 Apr.‐Sep. ’16 Change %Change Other income 39.8 16.4 (23.4) (58.7%) Interest income 4.2 5.1 0.8 19.7% Dividend income 2.5 1.3 (1.1) (46.4%) Gain on sales of marketable securities 11.4 ‐ (11.4) ‐ Foreign exchange gain 9.1 ‐ (9.1) ‐ Other 12.4 9.9 (
Slide 22: Analysis of Net Income Decrease
Analysis of Net Income Decrease (Billions of Yen) (億円) 100 19.6 50 112.0 45.4 (15.1) 15.7 0 20.2 3.5 ‐50 63.4 (147.5) (36.5) ‐100 (48.4) (1.0) ‐150 Net income Increase Decrease in Exchange rate Others Decrease in Decrease in Decrease Other Decrease in Net income Net income attributable in Sales Unit
Slide 23: Balance Sheet
Balance Sheet (Billions of yen) Mar. ’16 Sep. ’16 Change %Change Current assets 984.3 933.3 (51.0) (5.2%) Available fund (Billions of yen) 768.5* Tangible fixed assets 1,752.6 1,716.2 (36.3) (2.1%) Breakdown • Cash and deposits : 749.6 Intangible assets 541.4 497.4 (44.0) (8.1%) • Available investme
Slide 24: Statement of Cash Flows
Statement of Cash Flows (Billions of Yen) Apr.‐Sep. ’15 Apr.‐Sep. ’16 Change %Change Income before income taxes 258.8 132.1 (126.6) (48.9%) Depreciation and amortization 35.1 43.2 8.1 23.3% Recovery of recoverable accounts under production sharing (capital expenditures) 26.8 37.2 10.4 38.8% Recovera
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, 2016 ‐ Assumptions (August 4, 2016) 1st half (Previous Forecasts) Crude oil price (Brent) (US$/bbl) 46.0 Exchange rate (yen/US$) 106.6 (November 11, 2016) 1st half (Actual Results) Crude oi
Slide 26: Revisions of Financial Forecasts for the year ending March 31, 2017
Revisions of Financial Forecasts for the year ending March 31, 2017 ‐ Assumptions (August 4, 2016) 1st half 2nd half Full year Crude oil price (Brent) (US$/bbl) 46.0 45.0 45.5 Exchange rate (yen/US$) 106.6 105.0 105.8 (November 11, 2016) 1st half 2nd half Full year Crude oil price (Brent) (US$/bbl)