Inpex lifts profit forecast on strong oil prices

TOKYO Japan's biggest oil and gas explorer Inpex Corp lifted its full-year net profit forecast by 17 per cent on Monday as strong prices of natural gas and oil boosted its first-half earnings, while a weaker yen lent support.

After the end of the pandemic lock downs and a surge in energy prices, Russia's invasion of Ukraine, has boosted profits for energy companies worldwide.

Inpex expects to reach 350 billion yen $2.6 billion in the year 2022, which is a lower than the May estimate of 300 billion yen, though it fell short of the 408 billion yen forecast in a Refinitiv poll of nine analysts.

The net profit for the first six months was more than tripled from a year ago to 184 billion yen.

In a news conference, Inpex's managing executive officer, Daisuke Yamada, said the forecast was a result of a revision of assumptions of oil prices and forex rate.

Inpex revised its average Brent oil price for the year to $95 a barrel from $85, and the rate of the yen increased to 125 yen per US dollar from 120 yen.

Yamada said that the project of Ichthys LNG in Australia will contribute to its profit by more than 260 billion yen, or 20 billion yen, more than its previous plan.

The rosy outlook came despite a 6 per cent reduction in the full-year sales volume estimate of natural gas, hit by slower output at the Prelude floating LNG facility in Australia amid a long-running pay dispute.

With bumper profits, Inpex boosted its annual dividend to 60 yen a share from its previous plan of 54 yen, and announced a plan to buy back up to 8.7 per cent of its own shares this year.