Inpex Japan increases its annual profit forecast due to strong Ichthys Liquefied Gas production
Inpex, Japan's largest oil and gas exploration company, raised its net profit forecast for the year by 23% on Friday, citing higher oil prices, stronger yen and strong production at its Ichthys project, which is Australia's key liquefied gas project.
The company expects a profit of 370 billion yen (about $2 billion) in 2025. This is up from the 300 billion yen it projected for May and well above an LSEG survey's estimate of 324 trillion yen.
Daisuke YAMADA, Senior Managing Executive Officer, said at a press conference that the revision reflected the steady production of the Ichthys Project. He added that the depreciation of the yen and higher oil prices also contributed.
Yamada stated that Inpex expected Ichthys will ship 116 LNG cargoes in this year. This is the same volume as last year, despite planned maintenance for one and a half months during the second half.
The company increased its Brent oil price expectation to $69 from $65, and adjusted its yen estimate to 147 yen for every U.S. Dollar from 144.
Inpex's forecast for its annual dividend has been raised to 100 yen, up from 90 yen, and the actual dividend last year of 86.
The company has also announced that it will buy back up to 50,000,000 shares or 4.17%, of the outstanding shares. This share purchase is scheduled to take place between August 12 and December 31, with a maximum price of 80 billion yen.
Yamada stated that the confidence in future earnings was boosted by the strengthening of the structural profit basis, as well as improved resilience to low oil and yen prices.
Inpex's net profits for the six-month period ended June increased by 5.1%, to 223.53 milliards yen.
The company hopes to reach a final decision on investment in the Abadi project in Indonesia before 2027. Peak production is expected to be 9.5 million tons per year.
Yamada stated that the government plans to collect 400-600 billion yen between 2025 and 2027 for development preparation.
(source: Reuters)
