Japan's Inpex raises annual profit forecast on strong Ichthys LNG output
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 JPY370 billion ($2.5 billion) for 2025, up from its May projection of JPY300 billion and above analysts' estimate of JPY324 billion 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 JPY147 per US dollar from JPY144.
With the improved outlook, Inpex raised its annual dividend forecast to JPY100 per share, up from the previous estimate of JPY90 and last year's actual dividend of JPY86.
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 JPY80 billion, 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 JPY223.53 billion.
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 tonnes a year.
It plans to accumulate JPY400-600 billion for development preparation from 2025 to 2027, Yamada said.
(Reporting by Yuka Obayashi Editing by Mark Potter)
