INPEX (1605) Q2 2026 earnings summary

Executive summary

• H1 FY2026 profit reached a record ¥263.1 billion, up 17.7% year-over-year, despite a 4.6% revenue decline due to lower crude oil sales volumes from Middle East conflict impacts; higher oil prices and strong Ichthys LNG performance offset volume losses.

• Operating profit rose 0.3% to ¥618.7 billion, while total comprehensive income surged to ¥459.8 billion from a loss of ¥180.6 billion in the prior year, reflecting positive exchange differences.

• Full-year profit forecast revised up to a record ¥510.0 billion, mainly on higher realized sales prices and stable Ichthys LNG operations, despite ongoing Middle East uncertainties.

• Shareholder returns increased: annual DPS raised to ¥112 (up ¥12 YoY) and share buybacks of ¥140.0 billion resolved, with a total payout ratio expected at 53%.

Financial highlights

• Revenue for H1 FY2026 was ¥1,000.4 billion, down 4.6% year-over-year; operating profit was ¥618.7 billion, up 0.3%.

• Profit attributable to owners of parent rose to ¥263.1 billion (+17.7% YoY); EPS increased to ¥226.33 (+21.3% YoY).

• Crude oil revenue fell 10.9% to ¥694.9 billion, while natural gas revenue rose 8.2% to ¥271.9 billion year-over-year.

• Average Brent crude price rose 23.7% YoY to $87.60/bbl; average exchange rate depreciated 6.7% to ¥158.29/$.

• Cash and cash equivalents at June 30, 2026, were ¥216.2 billion, up from ¥168.4 billion at year-end 2025.

Outlook and guidance

• FY2026 profit forecast revised up by ¥60.0 billion to ¥510.0 billion (+13.3% vs. previous forecast), driven by higher sales prices and Ichthys LNG stability.

• Full-year 2026 revenue is forecast at ¥1,973.0 billion (down 1.9% year-over-year), with profit attributable to owners of parent expected to rise 29.5% to ¥510.0 billion.

• Dividend forecast for 2026 was revised upward to ¥112 per share.

• Full-year CFFO expected at ¥1,055.0 billion; investing cash flow forecast at ¥859.0 billion, including ¥200.0 billion set aside for Abadi LNG development.

• Net production volume projected to rise from 630 kboe/d to 800 kboe/d by 2035, with operating cash flow expected to reach ¥1.5 trillion (+67% vs. FY2024).