TOKYO :Japan’s biggest oil and gas explorer Inpex on Friday raised its annual net profit forecast by 23 per cent, citing strong production at its key Ichthys liquefied natural gas project in Australia, higher oil price assumptions and a weaker yen.
The company now expects a net profit of 370 billion yen ($2.5 billion) for 2025, up from its May projection of 300 billion yen and above analysts’ estimate of 324 billion yen in an LSEG poll.
“The revision reflected steady production at the Ichthys project,” Daisuke Yamada, senior managing executive officer, told a news conference, adding stronger oil prices and the yen’s depreciation also contributed.
Inpex expects Ichthys to ship 116 LNG cargoes this year, matching last year’s volume, despite a planned one-and-a-half-month maintenance in the second half, Yamada said.
The company revised its Brent oil price assumption to $69 per barrel from $65, while adjusting its yen assumption to 147 yen per U.S. dollar from 144 yen.
With the improved outlook, Inpex raised its annual dividend forecast to 100 yen per share, up from the previous estimate of 90 yen and last year’s actual dividend of 86 yen.
The company also announced a share buyback of up to 50 million shares, or 4.17 per cent of outstanding shares, with a maximum value of 80 billion yen, scheduled from August 12 to December 31.
“Strengthening the structural profit base along with improving resilience to low oil prices and yen appreciation has built confidence in future earnings,” Yamada said, citing this as the reason behind the increased shareholder returns.
For the six months ended June, Inpex’s net profit increased 5.1 per cent to 223.53 billion yen.
The company aims to make a final investment decision on the Abadi LNG project in Indonesia by 2027, with peak production expected at 9.5 million metric tons a year.
It plans to accumulate 400-600 billion yen for development preparation from 2025 to 2027, Yamada said.
($1 = 147.6600 yen)
