INPEX CORPORATION Q4 FY2025 earnings call

• Business overview: Discussed financial results and forecast for fiscal year. External environment has changed from energy transition to balancing energy security and addition. LNG demand in Asia is expected to grow with shortage.
• Ichthys update: 2025 had 112 cargo shipments, profit contribution JPY 270 billion. 2026 has booster compressor commissioning affecting production. Future backfill and Train 3 expansion activities ongoing.
• Abadi update: FEED work steady, cost estimate to be clear by end of 2026, marketing and financing activities started.
• Abu Dhabi: Investment large due to production increase.
• Clean energy: Blue hydrogen project, methanation facility, renewable energy investments in various regions.

For fiscal year 2025, net profit was JPY 393.8 billion, which was the third highest on record. Adjusted for oil price and foreign exchange rate, it was the best on record. For Ichthys in 2025, there were 112 cargo shipments and profit contribution of about JPY 270 billion. In 2026, due to booster compressor commissioning, production won't fully recover but will increase by about 10 cargoes. For Abadi, FEED work is steady, with cost estimate to be clear by end of 2026 and marketing and financing activities ongoing. In Abu Dhabi, investment is large due to production increase. For clean energy, blue hydrogen project in Niigata, methanation facility with Osaka Gas, renewable energy investments in Australia, Indonesia, Japan, etc. Revenue contribution: Oil and gas, especially natural gas and LNG, are core segments with significant contribution in terms of profit and future growth potential.

Forecast for fiscal year 2026 is JPY 330 billion profit. Assumes Brent at $63 and JPY 151 to a dollar, which is conservative. Targets annual dividend of JPY 108 per share with total shareholder return ratio of more than 50%. Expect to make investments of JPY 850 billion in 2026, with long-term growth confidence despite short-term profit forecast.

Q: About core earnings, ROE, ROIC and free cash flow.

A: Core earnings JPY 330 billion, ROE 7%, ROIC 6%, free cash flow likely negative this year due to large investment but will raise funds.

Q: Details of investments and Abadi milestones.

A: Investments include existing project expansion, new asset acquisition. Abadi's milestones include obtaining AMDAL permit, community engagement, detailed negotiations.

Q: Investment environment and profit booster.

A: Investment environment has both opportunities and challenges, profit booster involves factors like TA recycling and investment incentive effect.

Q: Ichthys production profile and cost forecast.

A: Ichthys production affected by booster compressor commissioning, cost forecast involves balance of production volume and OpEx.

Q: Dividend decision.

A: Discussions on returning profit to shareholders, considering payout ratio and inflation, leading to dividend of JPY 108 per share.