Inpex Raises Full-year Profit Guidance Despite Prelude Impairment Loss

Katya Golubkova and Yuka Obayashi
Thursday, November 9, 2023

Japan's top oil and gas producer Inpex on Thursday increased its full-year net profit forecast to 340 billion yen ($2.3 billion) on expectations of higher oil prices and a weaker yen and after record nine-month earnings.

Inpex had earlier forecast net profit for the year at 320 billion yen. On Thursday, it posted a 5% on-year increase in nine-month net profit to 280.4 billion yen.

The upward revision came despite an impairment loss of 75.6 billion yen the company booked in the third quarter on the Prelude liquefied natural gas (LNG) project in Australia due to higher costs to meet the tightened environmental regulations. 

"Despite the loss on the Prelude, we were able to book a record profit for the January-September period, helped by a weaker yen and stronger natural gas sales from the Ichthys LNG project in Australia," Daisuke Yamada, Inpex' managing executive officer, told a press conference.

The Australian government implemented a series of regulations and measures in the gas industry to meet domestic energy needs, manage soaring gas prices and reduce emissions.

Earlier this year, Inpex set aside a clean-up cost of 35 billion yen for Ichthys in response to the stricter regulations, but it has cancelled the cost as growing LNG output will be able to offset the extra expense, Yamada said.

"We have factored in all possible impact of Australia's tightened regulations on our earnings," Yamada said.

For the full-year, the company revised an assumption of Brent oil prices to $82.7 per barrel from its August estimate of $80 and exchange rate to 138.6 yen per U.S. dollar from 135.0 yen.  

($1 = 151.0600 yen)


(Reuters - Reporting by Katya Golubkova and Yuka Obayashi; Editing by Christopher Cushing and Emelia Sithole-Matarise)

Categories: LNG Industry News Activity Asia Gas FLNG Australia/NZ

Related Stories

Azeri SOCAR Plans New Agreements with Oil and Gas Majors

TPAO, SOCAR and BP to Ink Caspian Sea Oil and Gas Production Deal

Fugro Lands Deepwater Gas Field Job in Southeast Asia

ADNOC’s XRG Partners Up with Petronas for Offshore Gas Block in Caspian Sea

Valeura Energy Greenlights Wassana Oil Field Redevelopment off Thailand

Shell-Reliance-ONGC JV Complete India’s First Offshore Decom Project

TMC Books Compressors Orders for FPSO and LNG Vessels

Woodside Inks Long-Term LNG Supply Deal with China Resources

ADNOC Signs 15-Year LNG Supply Deal with Osaka Gas for Ruwais Project

ADNOC Secures LNG Supply Deal with India's BPCL

Current News

Azeri SOCAR Plans New Agreements with Oil and Gas Majors

TPAO, SOCAR and BP to Ink Caspian Sea Oil and Gas Production Deal

Fugro Lands Deepwater Gas Field Job in Southeast Asia

OMV Exits Ghasha Gas Project off UAE with Lukoil Stake Sale

China's Sinopec Laucnhes $690M Hydrogen Venture Capital Funds

CIP, ACEN Partner Up for First Large-Scale Offshore Wind Farm in Philippines

Valeura Concludes Eight-Well Drilling Campaign in Gulf of Thailand

Three Dead in Chevron's Angolan Oil Patform Fire

BW Opal FPSO Vessel set for Work off Australia

Keyfield Ventures into Indonesia’s Oil and Gas Market with New Partner

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com