Japan's Inpex lifts FY 2026 net profit outlook on higher oil prices

Published May 13, 2026 at 10:38 a.m. UTC

Source: MarketScreener

State-backed Japanese oil and gas explorer Inpex Corp. on Wednesday raised its net profit forecast for the year through December to a range of between 350 billion yen ($2.2 billion) and 450 billion yen on higher oil prices triggered by instability in the Middle East.

The company issued its earnings outlook as a range for the first time, citing increased uncertainty over the effective closure of the Strait of Hormuz following the U.S.-Israeli war on Iran.

"We set certain assumptions because it is difficult to know how the situation will develop," Daisuke Yamada, a senior managing executive officer, told a press conference on the company's earnings results.

Inpex had previously forecast a net profit of 330 billion yen for its current financial year.

The company said higher oil prices and a weaker yen are expected to more than offset the impact of reduced crude oil sales volume, as the strait's effective closure has disrupted some shipments.

The strait is a crucial waterway for global energy shipments and a major route for crude oil imports to Japan.

According to the company, operating profit is now projected at a range of 1.09 trillion yen to 1.37 trillion yen, up from the earlier forecast of 957 billion yen. Its sales are expected to total 2.00 trillion yen to 2.29 trillion yen, compared with 1.89 trillion yen previously forecast.

Inpex made its calculations based on a scenario that

conditions around the strait will normalize around July.

Yamada said the company's facilities have not sustained damage, but shipments from offshore oil fields have been restricted, weighing on production and shipment volumes.

In the January-March period, net profit fell 13.4 percent from a year earlier to 109.41 billion yen, while operating profit dropped 14.1 percent to 278.22 billion yen. Sales were down 6.5 percent to 501.80 billion yen.

Inpex said crude oil sales declined 10.4 percent to 352.8 billion yen, while natural gas sales fell 1.8 percent to 133.6 billion yen.

==Kyodo