Supplementary Explanation of Financial Results for the First Quarter of the Fiscal Year Ending December 2026 | INPEX CORPORATION (1605) timely disclosure

Worth reading

88Important

Scored from 5 of 6 sections

Direction

Mixed performance

Direction inferred from the company’s description.

Scale

200

¥100 million (based on the lower end of the forecast for profit for the period, versus the forecast announced in February)

Wording

Avoiding a definitive answer

How definitive the wording is.

Contents of this document

Supplementary materials to the earnings reportFirst quarter of the fiscal year ending December 202610 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales¥5,018 hundred million-6.5%

Operating profit¥2,782 hundred million-14.1%

Ordinary income¥2,913 100 million -13.1%profit before tax for the quarter

Net income¥1,094 100 million -13.4%profit for the quarter attributable to owners of the parent

Selling, general and administrative expenses¥322 100 million selling, general and administrative expenses, presented as expenses

Results for the three months of the current quarterRevenue: ¥501.8 billion; operating profit: ¥278.2 billion; profit before tax for the quarter: ¥291.3 billion; profit for the quarter attributable to owners of the parent: ¥109.4 billion

Full-year earnings forecast

Revenue

¥22,910 100 million at an oil price assumption of $83

Operating profit

¥13,680 100 million at an oil price assumption of $83

Pretax profit

¥14,160 100 million at an oil price assumption of $83

Profit for the period attributable to owners of the parent

¥4,500 100 million at an oil price assumption of $83

Revenue (at an oil price assumption of $70)

¥20,040 hundred million

Operating profit (at an oil price assumption of $70)

¥10,860 hundred million

Profit before tax (at an oil price assumption of $70)

¥11,340 hundred million

Profit for the period attributable to owners of the parent (at an oil price assumption of $70)

¥3,500 hundred million

What the company explained in this material

Self-assessment against the planThe company's self-assessment against its own plan.

Growth investments are progressing broadly in line with the original plan

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

Lower sales volumes¥-70 hundred million
Lower selling prices¥-494 hundred million
Foreign Exchange¥128 hundred million
Other¥85 hundred million
Lower revenue¥-350 hundred million
Increase in costs of sales¥-139 hundred million
Lower exploration expenses¥16 hundred million
Increase in SG&A expenses¥-14 hundred million
Equity-Method Income and Loss¥3 hundred million
Lower income taxes and other factors¥273 hundred million

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.

Full-year average oil price (at an oil price assumption of $83)$83 /bbl
Full-year average oil price (at an oil price assumption of $70)$70 /bbl
Full-year average exchange rate (at an oil price assumption of $83)156 Yen/Dollar
Full-year average exchange rate (at an oil price assumption of $70)154 Yen/Dollar
WACC6 Approximately %
Cost of shareholders’ equity8 Approximately %

New initiatives

Connection and commissioning work related to the Booster Compressor Module (low-pressure production facilities)
Additional acquisition of an interest in Southwest Caspian Oil
Acquisition of an onshore block in Australia (Beetaloo)

Key KPIsA metric the company considers important as a management benchmark.

Average oil price during the period (Brent)$78.38 /bbl
Year on year against the same period last year+4.5%
Average exchange rate during the period156.96 Yen/Dollar
Year on year against the same period last yearYen depreciation of 2.9%
Net production (crude oil, condensate and LPG)368 thousand BOE/day
Net production (crude oil and natural gas)635 thousand BOE/day
Total natural gas production1,410 million cf/day

Unit price and quantity metricsThese figures show sales broken down by price and volume.

ProductCrude oil
Sales volume
33,343 thousand bbl-2.6%
Selling price
$67.39 /bbl-10.7%
ProductNatural gas (excluding LPG)
Sales volume
130,018 million cf+3.5%
Selling price
$5.04 /thousand cf-2.3%

Medium-term management plan targets

TargetTotal payout ratio of 50% or more
TargetProgressive dividends

Financial targets

ROIC

Forecast value8 % at an oil price assumption of $83

ROE

Forecast value9.3 % at an oil price assumption of $83

Net debt-to-equity ratio

Forecast value0.33 times at an oil price assumption of $83

Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.

¥1,000 hundred million

DetailsAssumes a negative impact on profit, including lower sales volumes, resulting from the deterioration in the situation in the Middle East under the ¥450 billion scenario, with oil prices and foreign exchange rates being the primary factors

Annual Dividend

Interim dividend of ¥54 for the fiscal year ending December 2026, year-end dividend of ¥50 for the fiscal year ended December 2025, etc. However, the annual dividend for the fiscal year ending December 2026 is Not disclosed

Contents of this document
Item	Details
Document type	Supplementary materials to the earnings report
Fiscal Period Covered	First quarter of the fiscal year ending December 2026
Net Sales	¥5,018 hundred million (YoY -6.5%)
Operating profit	¥2,782 hundred million (YoY -14.1%)
Ordinary income	¥2,913 100 million (profit before tax for the quarter) (YoY -13.1%)
Net income	¥1,094 100 million (profit for the quarter attributable to owners of the parent) (YoY -13.4%)
Selling, general and administrative expenses	¥322 100 million (selling, general and administrative expenses, presented as expenses)
Results for the three months of the current quarter	Revenue: ¥501.8 billion; operating profit: ¥278.2 billion; profit before tax for the quarter: ¥291.3 billion; profit for the quarter attributable to owners of the parent: ¥109.4 billion
Full-year earnings forecast	Revenue ¥22,910 100 million (at an oil price assumption of $83) / Operating profit ¥13,680 100 million (at an oil price assumption of $83) / Pretax profit ¥14,160 100 million (at an oil price assumption of $83) / Profit for the period attributable to owners of the parent ¥4,500 100 million (at an oil price assumption of $83) / Revenue (at an oil price assumption of $70) ¥20,040 hundred million / Operating profit (at an oil price assumption of $70) ¥10,860 hundred million / Profit before tax (at an oil price assumption of $70) ¥11,340 hundred million / Profit for the period attributable to owners of the parent (at an oil price assumption of $70) ¥3,500 hundred million
Self-assessment against the plan	Growth investments are progressing broadly in line with the original plan
Breakdown of Factors Affecting the Change	Factors Lower sales volumes / Amount ¥-70 hundred million, Factors Lower selling prices / Amount ¥-494 hundred million, Factors Foreign Exchange / Amount ¥128 hundred million, Factors Other / Amount ¥85 hundred million, Factors Lower revenue / Amount ¥-350 hundred million, Factors Increase in costs of sales / Amount ¥-139 hundred million, Factors Lower exploration expenses / Amount ¥16 hundred million, Factors Increase in SG&A expenses / Amount ¥-14 hundred million, Factors Equity-Method Income and Loss / Amount ¥3 hundred million, Factors Lower income taxes and other factors / Amount ¥273 hundred million
Key KPIs	Indicator name Average oil price during the period (Brent) / Value $78.38 /bbl / Year on year against the same period last year $4.5 /bbl, Indicator name Average exchange rate during the period / Value 156.96 Yen/Dollar / Year on year against the same period last year Yen depreciation of 2.9%, Indicator name Net production (crude oil, condensate and LPG) / Value 368 thousand BOE/day / Year on year against the same period last year Not disclosed, Indicator name Net production (crude oil and natural gas) / Value 635 thousand BOE/day / Year on year against the same period last year Not disclosed, Indicator name Total natural gas production / Value 1,410 million cf/day / Year on year against the same period last year Not disclosed
Unit price and quantity metrics	Product Crude oil / Sales volume 33,343 thousand bbl (YoY -2.6%) / Selling price $67.39 /bbl (YoY -10.7%), Product Natural gas (excluding LPG) / Sales volume 130,018 million cf (YoY +3.5%) / Selling price $5.04 /thousand cf (YoY -2.3%)
Assumptions Underlying the Business Outlook	Item Full-year average oil price (at an oil price assumption of $83) / Value $83 /bbl, Item Full-year average oil price (at an oil price assumption of $70) / Value $70 /bbl, Item Full-year average exchange rate (at an oil price assumption of $83) / Value 156 Yen/Dollar, Item Full-year average exchange rate (at an oil price assumption of $70) / Value 154 Yen/Dollar, Item WACC / Value 6 Approximately %, Item Cost of shareholders’ equity / Value 8 Approximately %
Risk amount incorporated into the outlook	Amount ¥1,000 hundred million / Details Assumes a negative impact on profit, including lower sales volumes, resulting from the deterioration in the situation in the Middle East under the ¥450 billion scenario, with oil prices and foreign exchange rates being the primary factors
Medium-term management plan targets	Target Total payout ratio of 50% or more / Target fiscal year Not disclosed, Target Progressive dividends / Target fiscal year Not disclosed
Financial targets	ROIC Forecast value 8 % (at an oil price assumption of $83) / ROE Forecast value 9.3 % (at an oil price assumption of $83) / Net debt-to-equity ratio Forecast value 0.33 times (at an oil price assumption of $83)
Annual Dividend	Interim dividend of ¥54 for the fiscal year ending December 2026, year-end dividend of ¥50 for the fiscal year ended December 2025, etc. However, the annual dividend for the fiscal year ending December 2026 is Not disclosed
New initiatives	Connection and commissioning work related to the Booster Compressor Module (low-pressure production facilities), Additional acquisition of an interest in Southwest Caspian Oil, Acquisition of an onshore block in Australia (Beetaloo)

Items this document does not state (12)

Gross Profit MarginOperating profit marginProgress against full-year forecastSegment resultsNumber of stores and locationsNumber of employeesPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Although the rapid deterioration in the situation in the Middle East has affected the crude oil supply chain, the increase in profit expected from higher crude oil prices and the weaker yen is expected to substantially exceed the negative impact from lower sales volumes and other factors. The forecast for profit for the period was revised upward based on assumptions that allow for a range of oil prices and exchange rates. The reduction in growth investment reflects the timing of certain projects shifting into a different period.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.

Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.

Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.