ファConsolidated Financial Results for the Three Months ended June 30, 2010 [Japanese GAAP]
August 9, 2010
Note: The following report is an English translation of the Japanese-language original.
Company name

: INPEX CORPORATION

Stock Exchange on which the Company is listed : Tokyo Stock Exchange

Code number: 1605

URL http://www.inpex.co.jp/

Representative: Toshiaki Kitamura, President

Contact person: Kazuhiko Itano, General Manager, Corporate Communications Unit
TEL+81-3-5572-0233

Scheduled date of filing Quarterly Financial Report: August 11, 2010

Scheduled date of payment of cash dividends: ―Preparation of supplementary explanatory materials: Yes

Meeting of quarterly financial results presentation: None(Amounts less than one million yen are rounded off)

1. Consolidated Financial Results for the Three Months ended June 30, 2010 (April 1, 2010-June 30, 2010)(1) Consolidated operating results(Figures in % represent the changes from the corresponding period of the previous fiscal year)

Net sales

Operating income

Ordinary income

Net income

For the three months ended
June 30, 2010

Millions of yen

223,903

20.9

126,18336.7

122,698

38.7

32,004

23.1

June 30, 2009

185,164(51.4)

92,304(64.6)

88,470(63.9)

25,989(47.8)%

Millions of yen

Net income pershare—basic
For the three months ended
June 30, 2010
June 30, 2009%

Millions of yen%

Millions of yen%

Net income pershare—diluted
Yen

Yen

―
―

13,598.83
11,043.05(2) Consolidated financial position
Total assets
Millions of yen

As of June 30, 2010
As of March 31, 2010

Net assets excluding minority interests
Net assets excluding
as a percentage of total assets
minority interests per share
Millions of yen%
Yen

Net assets

2,016,243
2,013,778

1,496,586
1,490,603

69.2
68.9

592,451.87
589,548.88(Reference): Net assets excluding minority interests: ¥ 1,394,331 million as of June 30, 2010
¥ 1,387,499 million as of March 31, 2010

2. Dividends
Cash dividends per share
At 1st quarter end At 2nd quarter end At 3rd quarter end At fiscal year end
For the year ended
March 31, 2010
For the year ending
March 31, 2011

Yen

―

Yen

2,500.00

Total

Yen

Yen

Yen

―

3,000.00

5,500.00―

For the year ending
3,000.00
3,000.00
6,000.00―
March 31, 2011 (forecast)(Reference): Changes in projected dividends for the year ending March 31, 2011 from the previous forecast: None

3. Forecasted Consolidated Financial Results for the year ending March 31, 2011 (April 1, 2010-March 31, 2011)(Figures in % represent the changes from the previous fiscal period or year)

Net sales

Operating income

Ordinary income

Net income

Net income pershare

Millions of yen% Millions of yen% Millions of yen% Millions of yen%
For the six months ending
428,000 9.0
219,000
8.3
213,000 10.2
48,0000.7
September 30, 2010
For the year ending
863,000 2.7
451,000 (2.3)
433,000 (2.0)
102,000 (4.9)
March 31, 2011
(Reference): Changes in forecasted consolidated financial results for the year ending March 31, 2011 from the previous forecast: None

Yen

17,615.18
32,345.08

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4. Others (Please refer to page 3 “2. Others” for details.): None(1) Significant changes in scope of consolidation(Note): Changes in the specified subsidiaries during the period due to change in scope of consolidation(2) Adoption of simplified accounting method or special accounting treatment for preparationof quarterly consolidated financial statements: None(Note): Adoption of simplified accounting methods or special accounting methods for presenting
quarterly consolidated financial results(3) Changes in accounting principles, procedures, presentations, etc., pertaining to preparation of quarterly consolidated financial
statements:: Yes
1. Changes associated with revision in accounting standards: None2. Other changes(Note): Changes in accounting policies, procedures, or disclosures for presenting quarterly
consolidated financial statements stated as “Changes to the basis of presenting quarterly
consolidated financial statements.”(4) Number of shares issued (Common stock)
1. Number of shares issued at the end of the period(including treasury stock):
2. Number of treasury stock at the end of the period:
3. Average number of shares:

2,358,410 shares as of June 30, 2010
2,358,410 shares as of March 31, 2010
4,916 shares as of June 30, 2010
4,916 shares as of March 31, 2010
2,353,494 shares for the three months ended June 30, 2010
2,353,494 shares for the three months ended June 30, 2009

(Note): Since shareholder of the special class share is entitled to the same rights as that for shareholders of common stock regarding dividends andthe distribution of residual property, the special class share is classified as common stock equivalent share.

* Indication of quarterly review procedure implementation status
This quarterly earnings report is exempt from quarterly review procedure based upon the Financial Instruments andExchange Act. The review procedure for quarterly consolidated financial statements based upon the Financial Instruments andExchange Act has been completed at the time of disclosure of this report.
*Explanation regarding the appropriate use of estimated consolidated financial results
The aforementioned forecasts are based on the currently available information and contain many uncertainties. The final results might
be significantly different from the aforementioned forecasts due to changes in business conditions including oil and gas price levels,
production and sales plans, project development schedules, government regulations and financial and tax schemes. Please refer to“1.(3) Qualitative Information on Forecasted Consolidated Financial Results” on page 3.
The Company issued 1,216,000 shares of common stock by way of offering of new shares on August 2, 2010 as its due date. In
addition, up to 84,000 shares of common stock are planned to be issued to Nomura Securities Co., Ltd. as an allottee on August 31,
2010, by way of the third-party allotment in connection with a secondary offering of the Company’s shares (by way of over-allotment).
As a result, net income per share for the six months ending September 30, 2010 and for the year ending March 31, 2011, on the
aforementioned forecasts, is recalculated from the assumption that 84,000 shares of common stock may be issued by way of the thirdparty allotment, in addition to increase of 1,216,000 shares of common stock by offering of new shares.

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Index of the Attachments

1.

2.

Qualitative Information / Financial Statements……………………………………………………………………………..

2(1) Qualitative Information on Consolidated Financial Results…………………………………………………………......

2(2) Qualitative Information on Consolidated Financial Position………………………………………………………….....

2(3) Qualitative Information on Forecasted Consolidated Financial Results………………………………………………....

3

Others ……………………………………………………………………………………………………………………...

3(1) Significant changes in scope of consolidation…………………………………………………………………………...

3(2) Adoption of simplified accounting method or special accounting treatment
for preparation of quarterly consolidated financial statements………………………………………………………....

3(3) Changes in accounting principles, procedures, presentations, etc., pertaining
to preparation of quarterly consolidated financial statements………………………………………………………….

3

3. Consolidated Financial Statements…………………………………………………………………………………………..

4(1) Consolidated Balance Sheets………………………………………………………………………………………….....

4(2) Consolidated Statements of Income……………………………………………………………………………………...

6(3) Consolidated Statements of Cash Flows………………………………………………………………………………....

7(4) Conditions or events that indicate there could be substantial doubt about
the Company’s ability to continue as a going concern………………………………………………………………......

9(5) Segment Information…………………………………………………………………………………………………......

10(6) Note on significant changes in shareholders’ equity……………………………………………………………………..

11(7) Subsequent events……………………………………………………………………………………………………......

12

Supplementary information……………………………………………………………………………………………….....

13(1) Production, orders received and sales performance……………………………………………………………………...

13

4.

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1.Qualitative Information / Financial Statements(1) Qualitative Information on Consolidated Financial Results
During the three months ended June 30, 2010, consolidated net sales were ¥223,903 million (increased by ¥38,739 million, or 20.9%,
from the corresponding period of the previous fiscal year) due mainly to an increase in sales price of crude oil and natural gas. Net
sales of crude oil increased by ¥20,956 million, or 19.4%, to ¥129,186 million, and net sales of natural gas increased by ¥16,965
million, or 23.7%, to ¥88,629 million, respectively. Sales volume of crude oil decreased by 1,214 Mbbls, or 6.3%, to 17,958 Mbbls.
Sales volume of natural gas decreased by 4,376 MMcf, or 4.2%, to 100,221 MMcf. Sales volume of natural gas produced overseas
decreased by 5,153 MMcf, or 5.6%, to 86,160 MMcf, and sales volume of natural gas produced domestically increased by 21 MM㎥,
or 5.8%, to 377 MM㎥ (14,061 MMcf). The average sales price of crude oil produced overseas increased by US$20.08 per bbl, or
35.1 %, to US$77.35 per bbl, and the average sales price of natural gas produced overseas increased by US$1.99 per Mcf, or 31.2%,
to US$8.37 per Mcf. In addition, the average sales price of domestic natural gas increased by ¥7.06, or 19.7%, to ¥42.94 per ㎥. The
average exchange rate of Japanese yen on consolidated net sales appreciated by ¥5.13, or 5.3%, to ¥92.08 per U.S. dollar from thecorresponding period of the previous fiscal year.
The increase of ¥38.7 billion in net sales was derived mainly from the following factors: a decrease in sales volume adversely affected¥7.5 billion, an increase in unit sales price affected ¥56.6 billion, the appreciation of Japanese yen against U.S. dollar adversely
affected ¥11.1 billion and net sales excluding crude oil and natural gas affected ¥0.8 billion.
Cost of sales for the three months ended June 30, 2010 increased by ¥5,836 million, or 7.9%, to ¥79,720 million due mainly to anincrease in net purchase of natural gas in Japan and an increase in royalty in the ADMA Block owing to an increase in sales.
Exploration expenses decreased by ¥55 million, or 2.9%, to ¥1,852 million due mainly to a decrease in exploration activities in Japandespite an increase in Oceania. Selling, general and administrative expenses decreased by ¥920 million, or 5.4%, to ¥16,147 million.
As a result, operating income increased by ¥33,878 million, or 36.7%, to ¥126,183 million.
Other income decreased by ¥227 million, or 5.5 %, to ¥3,934 million due to a decrease in interest income. Other expenses decreasedby ¥576 million, or 7.2%, to ¥7,419 million due mainly to a decrease in foreign exchange loss, provision for exploration projects, andprovision for allowance for recoverable accounts under production sharing owing to a decrease in exploration activities in the Masela
Block and others, despite a record of loss on adjustment for changes of accounting standard for asset retirement obligations. As aresult, ordinary income and income before income taxes and minority interests increased by ¥34,227 million, or 38.7%, to ¥122,698
million.
Total amount of current income taxes increased by ¥22,206 million, or 35.6%, to ¥84,560 million, and deferred income taxes were
¥3,274 million, income before minority interests were ¥34,863 million, and minority interests were ¥2,858 million. As a result of theabove effects, net income for the three months ended June 30, 2010 increased by ¥6,015 million, or 23.1%, to ¥32,004 million fromthe corresponding period of the previous fiscal year.

Financial results of segment are as follows: Meanwhile, effective from the first quarter ended June 30, 2010, the Company adopted“Accounting Standard for Disclosures about Segments of an Enterprise and Related Information” (ASBJ Statement No.17, issued on
March 27, 2009) and the “Guidance on the Accounting Standard for Disclosures about Segments of an Enterprise and RelatedInformation” (ASBJ Guidance No.20, issued on March 21, 2008). The reportable segments and the calculation method of segment
income effective from the first quarter ended June 30, 2010 are compared with the geographical segment information of thecorresponding period of the previous fiscal year since the same calculation method is used.
1)

Japan
Net sales increased by ¥4,447 million, or 23.4%, to ¥23,444 million due to an increase in sales volume and sales price of naturalgas. Operating income increased by ¥132 million, or 2.5%, to ¥5,373 million due to an increase in net purchase of natural gas.
2) Asia - Oceania
Net sales increased by ¥16,438 million, or 19.8%, to ¥99,602 million due to an increase in sales price of crude oil and natural gas
despite a decrease in sales volume of crude oil and natural gas, and appreciation of Japanese yen, and operating income increasedby ¥15,282 million, or 36.9%, to ¥56,688 million.
3) Eurasia (Europe - NIS)
Net sales decreased by ¥3,440 million, or 20.7%, to ¥13,191 million due to a decrease in sales volume of crude oil in the ACG oil
fields, and appreciation of Japanese yen despite an increase in sales price of crude oil, and operating income increased by ¥2,870
million, or 57.2%, to ¥7,886 million due to a decrease in cost recovery portions at ACG oil fields.
4) Middle East - Africa
Net sales increased by ¥21,328 million, or 34.0%, to ¥84,109 million due to an increase in sales price, and operating income
increased by ¥15,670 million, or 37.5%, to ¥57,487 million.
5) Americas
Net sales decreased by ¥34 million, or 1.0%, to ¥3,557 million, and operating income decreased by ¥21 million, or 2.4%, to ¥886
million, which is moving sideways from the corresponding period of the previous fiscal year.
(2) Qualitative Information on Consolidated Financial Position
Total assets as of June 30, 2010 increased by ¥2,465 million to ¥2,016,243 million from ¥2,013,778 million as of March 31, 2010.
This is due mainly to an increase in recoverable accounts under production sharing by ¥8,637 million owing to the investments at the

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Kashagan oil field etc., and increase in cash and deposits despite a decrease in marketable securities.
Meanwhile, total liabilities decreased by ¥3,518 million to ¥519,656 million from ¥523,175 million. Current liabilities decreased by¥2,161 million to ¥225,743 million and long-term liabilities decreased by ¥1,357 million to ¥293,912 million.
Net assets increased by ¥5,983 million to ¥1,496,586 million, of which minority interests in net assets decreased by ¥848 million to¥102,255 million.
Cash and cash equivalents as of June 30, 2010 totaled ¥203,775 million reflecting a net decrease of ¥12,619 million from ¥216,395
million at the end of the previous fiscal year.
Cash flows from operating activities, investing activities and financial activities and those factors are as follows:
1) Cash flows from operating activities
Net cash provided by operating activities was ¥70,390 million (increased by ¥34,121 million from the corresponding period of
the previous fiscal year). This is due mainly to an increase in income before income taxes and minority interests owing to anincrease in sales price of crude oil.
2) Cash flows from investing activities
Net cash used in investing activities was ¥77,460 million (increased by ¥40,740 million from the corresponding period of theprevious fiscal year). This is due mainly to an increase in payments for purchases of investment securities.
3) Cash flows from financial activities
Net cash used in financial activities was ¥57 million (decreased by ¥2,151 million from the corresponding period of the previous
fiscal year). This is due to an increase in proceeds from long-term debt.

(3) Qualitative Information on Forecasted Consolidated Financial Results
Consolidated financial forecasts for the year ending March 31, 2011 have been disclosed on May 12, 2010, that net income for the six
months ending September 30, 2010 would be ¥480 million and net income for the year ending March 31, 2011 would be ¥1,020
million, which the Company does not revise at this time.

2.Others(1) Significant changes in scope of consolidation:
None(2) Adoption of simplified accounting method or special accounting treatment for preparation of quarterly consolidated financial
statements:
None(3) Changes in accounting principles, procedures, presentations, etc., pertaining to preparation of quarterly consolidated financial
statements:
1) Adoption of “Accounting Standard for Asset Retirement Obligations”
Effective from the first quarter ended June 30, 2010, the Company has adopted the “Accounting Standard for Asset
Retirement Obligations” (ASBJ Statement No. 18 issued on March 31, 2008) and the “Guidance on Accounting Standard for
Asset Retirement Obligations” (ASBJ Guidance No. 21 issued on March 31, 2008). Pursuant to these standards, the Company has
reversed liabilities for site restoration and decommissioning costs which had been recorded as a provision for future costs
expected to incur in accordance with the schedule for site restoration and decommissioning.
As a result, operating income increased by ¥33 million and ordinary income and income before income taxes and minority
interests decreased by ¥1,393 respectively. The change in the amount of asset retirement obligations due to the adoption of theseaccounting standards is ¥2,305 million.
2) Adoption of “Accounting Standard for Equity Method of Accounting for Investment” and “Practical Solution on Unificationof Accounting Policies Applied to Associates Accounted for Using the Equity Method”
Effective from the first quarter ended June 30, 2010, the Company has adopted the “Accounting Standard for Equity Methodof Accounting for Investment” (ASBJ Statement No. 16 issued on March 10, 2008) and the “Practical Solution on Unification of
Accounting Policies Applied to Associates Accounted for Using the Equity Method” (ASBJ PITF No. 24 issued on March 10,2008).
There is no impact on the consolidated financial statements as a result of this change.

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印刷日時:10/08/06 11:58

3. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)Accounts

Condensed balance sheet as ofMarch 31, 2010

As of June 30, 2010

(Assets)
Current assets
Cash and deposits

131,268

119,809

Accounts receivable-trade

80,04388,364Marketable securities

202,688

213,040

Inventories

12,89812,322

Other

65,75759,340(4)(22)

492,651

492,854358,432

358,094

Goodwill

106,432

108,122

Other

129,049

131,082

Total intangible assets

235,482

239,205

Investment securities

403,844

403,978

Recoverable accounts under production
sharing523,282

514,645

Other

116,331

115,781

(635)

(640)

(96,455)(94,891)(16,691)(15,248)929,676

923,624

1,523,591

1,520,923

2,016,243

2,013,778

Allowance for doubtful accounts
Total current assets
Fixed assets
Tangible fixed assets
Intangible assets

Investments and other assets

Allowance for doubtful accounts
Allowance for recoverable accounts
under production sharing
Allowance for investments in
exploration
Total investments and other assets
Total fixed assets
Total assets― 4 ―更新日時:2010/08/03 19:11:00

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印刷日時:10/08/06 11:58(Millions of yen)Accounts

Condensed balance sheet as ofMarch 31, 2010

As of June 30, 2010

(Liabilities)
Current liabilities
Accounts payable-trade16,144

16,601

Short-term loans

4,819

4,872

Income taxes payable

72,21386,534

Provision for exploration projects

13,143

15,324

Accrued bonuses to officers

39

132

Asset retirement obligations

5,343

―

Other

114,038

104,440

Total current liabilities

225,743

227,905

235,487

235,510

7,389

7,585

―

14,257

1,964

1,964

449

442

Asset retirement obligations

9,789

―

Other

38,83135,508

Total long-term liabilities

293,912295,269

Total liabilities

519,656

523,175

Common stock

30,00030,000Capital surplus

418,477

418,477

Retained earnings

961,689

936,744

Treasury stock(5,248)(5,248)1,404,918

1,379,974(187)

12,351

Translation adjustments(10,399)(4,826)

Total valuation, translation adjustments
and others(10,586)

7,525

Minority interests

102,255

103,103

Total net assets

1,496,586

1,490,603

Total liabilities and net assets

2,016,243

2,013,778

Long-term liabilities
Long-term debt
Accrued retirement benefits to employees
Liabilities for site restoration anddecommissioning costs
Liabilities for losses on development
activities
Accrued special repair and maintenance(Net assets)
Shareholders’ equity

Total shareholders’ equity
Valuation, translation adjustments and others
Unrealized holding gain (loss) on
securities― 5 ―ァイル名:④H23.3第1四半期_PL【OK】.DOC

更新日時(2) Consolidated Statements of Income(Millions of yen)
For the three months ended
June 30, 2009

Accounts

For the three months ended
June 30, 2010

Net sales

185,164

223,903

Cost of sales

73,88479,720Gross profit

111,280

144,183

Exploration expenses

1,908

1,852

Selling, general and administrative expenses

17,067

16,147

Operating income

92,304

126,183

Interest income

1,310

1,041

Dividend income

1,165

1,200

Other

1,686

1,692

Total other income

4,162

3,934

Interest expense

245

230

Equity in losses of affiliates

796

733

Provision for allowance for recoverable accounts under
production sharing

1,743

―

Provision for exploration projects

2,617

―

Provision for investments in exploration

―

2,922

Loss on adjustment for changes of accounting standard for asset
retirement obligations

―

1,555

1,952

245

640

1,731

7,995

7,419

Ordinary income

88,470122,698

Income before income taxes and minority interests

88,470122,698

Income taxes-current

62,35384,560

Income taxes-deferred

(132)

3,274

Total income taxes

62,221

87,834

Income before minority interests―

34,863

Minority interests

260

2,858

25,98932,004

Other income

Other expenses

Foreign exchange loss
Other
Total other expenses

Net income― 6 ―ファイル名:⑤H23.3_第1四半期CF【OK】.DOC

更(3) Consolidated Statements of Cash Flows(Millions of yen)Accounts

For the three months ended
June 30, 2009

For the three months ended
June 30, 2010

Cash flows from operating activities
Income before income taxes and minority interests

88,470122,698

Depreciation and amortization

10,03013,426

Amortization of goodwill

1,690

1,690

―

1,555

2,132

1,531

Provision for exploration projects

1,985(2,214)

Provision for accrued retirement benefits to employees

(184)

(184)

Provision for site restoration and decommissioning costs

487―

Other provisions

(69)

1,341

(2,476)(2,241)245

230(1,074)(1,821)

796

733

13,04812,128(3,648)(307)(4,155)

5,356

(374)

(829)

Accounts payable-trade

85

(121)

Other

929

20,611

107,920

173,582

Interest and dividends received

2,719

2,379

Interest paid

(674)

(137)

(73,696)(105,433)

36,26970,390Loss on adjustment for changes of accounting standard
for asset retirement obligations
Provision for allowance for recoverable accounts
under production sharing

Interest and dividend income
Interest expense
Foreign exchange gain
Equity in losses of affiliates
Recovery of recoverable accounts under production
sharing (capital expenditures)
Recoverable accounts under production sharing(operating expenditures)
Accounts receivable-trade
Inventories

Subtotal

Income taxes paid
Net cash provided by operating activities― 7 ―ファイル名:⑤H23.3_第1四半期CF【OK】.DOC

更(Millions of yen)Accounts

For the three months ended
June 30, 2009

For the three months ended
June 30, 2010

Cash flows from investing activities
Increase in time deposits

(224)

(243)

Decrease in time deposits

230

218

(30,455)(26,063)

Proceeds from sales of tangible fixed assets

4

26

Payments for retirement of tangible fixed assets―(1,881)

(519)

(279)

―

(3,542)

Proceeds from sales of marketable securities

28,32020,000

Payments for purchases of investment securities(7,546)(53,576)―

10,079(24,823)(19,531)(40)

36(2,217)(1,119)Collection of long-term loans receivable

34

8

Other

516

(1,590)(36,720)(77,460)

7,100

(40)

Proceeds from long-term debt

520

9,540

Repayments of long-term debt

(1,319)(1,078)Proceeds from minority interests for additional shares

1,019

―

Cash dividends paid

(9,420)(7,069)Dividends paid to minority shareholders(81)(1,331)

Other

(27)

(77)

(2,208)

(57)

(880)

(5,492)

Net decrease in cash and cash equivalents(3,540)(12,619)

Cash and cash equivalents at beginning of the period

162,844

216,395

Cash and cash equivalents at end of the period

159,304

203,775

Payments for purchases of tangible fixed assets

Payments for purchases of intangible assets
Payments for purchases of marketable securities

Proceeds from sales of investment securities
Investment in recoverable accounts under production
sharing (capital expenditures)
Decrease (increase) in short-term loans receivable
Long-term loans madeNet cash used in investing activities
Cash flows from financing activities
Increase (decrease) in short-term loans

Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents― 8 ―ファイル名:⑥H23.3第1四半期セグメント-海外売上高-継続企業【OK】.doc更新日時:2010/08/09 16:52:00

印刷日時:10/08/09 19:09(4) Conditions or events that indicate there could be substantial doubt about the Company’s ability to continue as a going concern
For the three months ended June 30, 2010 (April 1, 2010 through June 30, 2010):
None

―9―

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印刷日時:10/08/09 19:09(5) Segment information【Business segment information】
For the three months ended June 30, 2009 (April 1, 2009 through June 30, 2009)
Segment information by business has been omitted because the crude oil and natural gas business accounts for more than 90% of
total sales and operating income.

【Geographical segment information】
For the three months ended June 30, 2009 (April 1, 2009 through June 30, 2009)(Millions of yen)Japan

Asia Oceania

Eurasia(EuropeNIS)

18,996

83,163

16,63262,780

3,591

―

―

―

―

Total

18,996

83,163

16,632

Operating income

5,240

41,406

5,016

Middle East Africa

AmericasEliminations
and other

Consolidated

185,164―

185,164

―

―

―

―

62,7803,591

185,164―

185,164

41,817907

94,388(2,083)92,304Total

Net sales(1) Sales to third parties(2) Intercompany sales andtransfers between segments

Notes:

1. Countries and areas are segmented based on their geographic proximity and their mutual operational relationships.
2. Major countries and areas that belong to segments other than Japan are as follows:(1) Asia - Oceania･････････Indonesia, Australia, East Timor, Vietnam(2) Eurasia (Europe - NIS)･･Azerbaijan, Kazakhstan, UK(3) Middle East - Africa････UAE, D.R. Congo, Iran, Libya, Egypt, Algeria, Angola(4) Americas･････････････Venezuela, Ecuador, USA, Canada, Surinam, Brazil【Overseas sales】
For the three months ended June 30, 2009 (April 1, 2009 through June 30, 2009)
Asia - Oceania
I.

Overseas sales (Millions of yen)

55,684

Other

Total
14,527

II. Consolidated sales (Millions of yen)

185,164

III. Overseas sales as a percentage of consolidated sales (%)
Notes:

70,211

30.1

7.8

37.9

1. Countries and areas are segmented based on their geographic proximity.
2. Major countries and areas that belong to segments other than Japan are as follows:(1) Asia - Oceania････････South Korea, Taiwan, Indonesia, Singapore, Thailand, Australia(2) Other･･･････････････Italy
3. Overseas sales represent sales to countries and regions outside of Japan, which is determined based upon the finaldestination.

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ファイル名:⑥H23.3第1四半期セグメント-海外売上高-継続企業【OK】.doc更新日時:2010/08/09 16:52:00

印刷日時:10/08/09 19:09【Segment information】
1.

Overview of reportable segments

For the Company’s oil and natural gas development activities, the Board of Directors make the Group management decisions with respect to each mining area and others, the separate financial information of which is available.
The Company operates oil and natural gas businesses globally, thus, the Company’s reportable segments are entities of individual mining
areas and others aggregated by geographical region. These are classified into following segments: “Japan”, “Asia - Oceania” (principally
Indonesia, Australia and East Timor), “Eurasia (Europe - NIS)” (principally Azerbaijan), “Middle East - Africa” (principally UAE) and“Americas.”
The Company produces oil and natural gas in each segment. In addition, the Company conducts marketing petroleum products and othersin “Japan” segment.

2.

Information on sales and income (loss) by reportable segment
For the three months ended June 30, 2010 (April 1, 2010 through June 30, 2010)(Millions of yen)Japan

Asia Oceania

Reportable segments
Eurasia
Middle East
(EuropeAmericas-Africa
NIS)

Adjustment Consolidated
Total

*1

*2

Net sales
23,444

99,602

13,191

84,1093,557

223,903―

223,903

―

―

―

―

―

―

―

―

Total

23,444

99,602

13,191

84,1093,557

223,903―

223,903

Segment income

5,373

56,6887,886

57,487886

128,322(2,139)126,183(1) Sales to third parties(2) Intercompany sales
and transfers between
segments

Note: 1. Adjustments of segment income of ¥(2,139) million includes elimination of intersegment transactions of ¥60 million and corporate expenses of ¥(2,200) million. Corporate expenses are mainly amortization of goodwill not attributable to a reportablesegment and general administrative expenses.
2. Segment income has been adjusted on quarterly consolidated results’ operating income.
3.

Information on impairment loss from fixed assets, goodwill, and others by reportable segment:
None(Additional Information)
Effective from the first quarter ended June 30, 2010, the Company adopted the “Accounting Standard for Disclosures about Segments ofan Enterprise and Related Information” (ASBJ Statement No.17, issued on March 27, 2009) and the “Guidance on the Accounting Standard for Disclosures about Segments of an Enterprise and Related Information” (ASBJ Guidance No.20, issued on March 21, 2008).
(6) Note on significant changes in shareholders’ equity
For the three months ended June 30, 2010 (April 1, 2010 through June 30, 2010):
None

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ファイル名:⑥H23.3第1四半期セグメント-海外売上高-継続企業【OK】.doc更新日時:2010/08/09 16:52:00

印刷日時:10/08/09 19:09(7) Subsequent events
For the three months ended June 30, 2010 (April 1, 2010 through June 30, 2010)
Issuance of new shares and secondary offering of shares
The Company conducted issuance of new shares and secondary offering of its shares pursuant to a resolution dated July 8, 2010 by its
Board of Directors. The outline of this issuance of new shares and secondary offering are as set forth below.
1. Issuance and offering of new shares(1) Type and number of shares to be offered
A total of 1,216,000 shares of the Company’s common stock, as shown in (i) through (iii) below.
(i) 566,000 shares of the Company’s common stock to be purchased and underwritten by the Japanese Underwriters in a public offering conducted in Japan(ii) 566,000 shares of the Company’s common stock to be purchased and underwritten by the International Managers in an offering
conducted overseas(iii) Up to an additional 84,000 shares of the Company’s common stock pursuant to an option to purchase granted by the Company
to the International Managers(2) Offer price per share¥417,100(3) Total offer price¥507,193 million(4) Issue price per share¥402,050(5) Total issue price¥488,892 million(6) Amount by which common stock and capital surplus are to be increased
Amount by which common stock is to be increased: ¥244,446 million
Amount by which capital surplus is to be increased: ¥244,446 million(7) Payment dateAugust 2, 2010
2. Issuance of new shares by way of third-party allotment (secondary offering of the Company’s shares by way of over-allotment)(1) Type and number of shares to be offered(up to) 84,000 shares of the Company’s common stock(2) Issue price per share¥402,050(3) Total issue price(up to) ¥33,772 million(4) Amount by which common stock and capital surplus are to be increased
Amount by which common stock is to be increased: (up to) ¥16,886 million
Amount by which capital surplus is to be increased: (up to) ¥16,886 million(5) Payment dateAugust 31, 2010
3. Use of proceeds
The Company intends to use the entire sum of the net proceeds from the Japanese offering, the international offering and the issuance of
new shares by way of third-party allotment, which is estimated to be up to ¥520,002 million as investment and funding in particular for
INPEX Browse, Ltd. as well as for our other major projects. In turn, INPEX Browse, Ltd. is expected to use the entire investment andfunding from us for the development expenditures of the Ichthys LNG Project.

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4ファイル名:

4. Supplementary information(1) Production, orders received and sales performance1) Actual production
The following table shows actual production by business segment for the three months ended June 30, 2009:
For the three months ended
Business segment
Category
June 30, 200920 MMbbls
Crude oil
( 220 Mbbls per day)
104 Bcf
Natural gas(1,144 MMcf per day)
37 MMboe
Subtotal
Crude oil and(411 Mboe per day)natural gas
Petroleum
53 Mklproducts(331 Mbbls)
Iodine110 tons
Electric power
25 millions kWhgeneration
Notes:

1. The volume of LPG produced overseas is included in ‘Crude oil.’ On the other hand, the volume of LPG produced in thedomestic refinery is included in ‘Petroleum Products.’
2. A portion of crude oil production volume is consumed as material for petroleum products.
3. A portion of crude oil and natural gas production volume is consumed as fuel to generate electricity.
4. The production by the Company’s affiliates accounted for by the equity method is included in the figures above. Also the
production volume is a result for the three months ended June 30 regardless of a closing date of fiscal periods of its
subsidiaries or affiliates.
5. The production volume of crude oil and natural gas under the production sharing contracts entered into by INPEX Groupcorresponds to the net economic take of the group.
Figures calculated by multiplying the gross production volume by the Company’s interest share are 30 MMbbls (328
Mbbls per day) of crude oil, 136 Bcf (1,497MMcf per day) of natural gas, and in total 53 MMboe (577 Mboe per day). For
calculating the gas production based on interest share, 100% of the gas production volume measured at wellhead (separatorgas) had been used until the year ended March 31, 2009. However, from the year ended March 31, 2010, the Company
applies marketable gas volume basically adjusted for delivery specifications, excluding own fuel consumption, re-injection,
losses as flare, diffusion, process loss and inert gas generated at plant etc.
6. Boe means barrels of oil equivalent.
7. The volume of petroleum products is converted to bbl in parenthesis. Applied coefficient is 6.29 bbls per kl.
8. Iodine is refined by other company on consignment.
9. Figures are rounded to the nearest whole number.

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4ファイル名:

The following table shows actual production by segment for the three months ended June 30, 2010:
For the three months ended
Segment
Category
June 30, 2010
0.3 MMbbls
Crude oil(3.7 Mbbls per day)10.4 Bcf
Natural gas(114.4 MMcf per day)
2.1 MMboe
Subtotal(22.7
Mboe
per day)Japan
48.9Mkl
Petroleum products(307.6 Mbbls)
122.0 tons
IodineElectric power
41.9 millions kWhgeneration
7.0 MMbbls
Crude oil
(76.4 Mbbls per day)76.7 Bcf
Asia - Oceania
Natural gas(842.8 MMcf per day)19.7 MMboe
Subtotal(216.9 Mboe per day)
2.4 MMbbls
Eurasia (Europe - NIS)
Crude oil(26.6 Mbbls per day)11.9 MMbbls
Middle East - Africa
Crude oil(131.0 Mbbls per day)
0.7 MMbbls
Crude oil(7.9 Mbbls per day)
8.2 Bcf
AmericasNatural gas(90.0 MMcf per day)
2.1 MMbbls
Subtotal(22.9 Mboe per day)22.3 MMbbls
Crude oil
(245.6 Mbbls per day)95.3 Bcf
Natural gas(1,047.2 MMcf per day)38.2 MMboe
Subtotal(420.1 Mboe per day)Total
48.9 MklPetroleum products(307.6 Mbbls)
122.0 tons
IodineElectric power
41.9 millions kWhgeneration
Notes:

1. The volume of LPG produced overseas is included in ‘Crude oil.’ On the other hand, the volume of LPG produced in thedomestic refinery is included in ‘Petroleum Products.’
2. A portion of crude oil production volume is consumed as material for petroleum products.
3. A portion of crude oil and natural gas production volume is consumed as fuel to generate electricity.
4. The production by the Company’s affiliates accounted for by the equity method is included in the figures above. Also the
production volume is a result for the three months ended June 30 regardless of a closing date of fiscal periods of its
subsidiaries or affiliates.
5. The production volume of crude oil and natural gas under the production sharing contracts entered into by INPEX Groupcorresponds to the net economic take of the group.
Figures calculated by multiplying the gross production volume by the Company’s interest share are 32.6 MMbbls (358.5
Mbbls per day) of crude oil, 135.1 Bcf (1,484.6 MMcf per day) of natural gas, and in total 55.1 MMboe (605.9 Mboe perday).
6. Boe means barrels of oil equivalent.
7. The volume of petroleum products is converted to bbl in parenthesis. Applied coefficient is 6.29 bbls per kl.
8. Iodine is refined by other company on consignment.
9. Figures are rounded to the nearest whole number.

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4ファイル名:

2) Orders received
Disclosure on this information is omitted because the amount of orders received accounts for a minor portion of total sales.
3) Actual salesa) The Company takes back the full amount of crude oil produced overseas allocated to us under production sharing
contracts and produced under concession agreements, and sell it to domestic and foreign customers. The Company
sells most of natural gas produced in Indonesia in the form of LNG to Japanese power companies, city gas
companies and customers in South Korea, Taiwan and other countries through PERTAMINA. In addition, theCompany sells natural gas produced in Japan to customers using our pipeline.
b) The following table shows sales by business segment for the three months ended June 30, 2009:

Business segment

Category
Crude Oil(Millions of yen)
For the three months ended
June 30, 2009
19,172 Mbbls

108,230

104,597 MMcf
Crude oil andnatural gas

71,664Natural Gas
LPG: 521 Mbbls
Other

4,840

Subtotal

184,735

Other

429
Total

Notes:

185,164

1. The above amounts do not include the related consumption tax.
2. The Company’s subsidiaries of which closing date for fiscal year is December 31 are principally consolidated their operating
results for the three months ended March 31, 2009 except those subsidiaries prepared their financial statements forconsolidation purpose as of the consolidation closing date. However, the significant effects of the difference in fiscal periods
were properly adjusted in consolidation.
3. Sales volumes are rounded to the nearest whole number.

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4ファイル名:c) The following table shows sales by segment for the three months ended June 30, 2010:

Segment(Millions of yen)
For the three months ended
June 30, 2010
Sales volume
Net sales

Category
Crude OilNatural Gas(excluding LPG)Japan

52 Mbbls

409

14,061 MMcf

16,17768 Mbbls

770

LPG
Other

6,087

Subtotal

Asia - Oceania

23,444Crude OilNatural Gas(excluding LPG)

4,010 Mbbls

29,471

78,273 MMcf

64,859836 Mbbls

5,271

LPG
Subtotal

99,602Eurasia (Europe - NIS)

Crude Oil

1,830 Mbbls

13,191

Middle East - Africa

Crude Oil

11,765 Mbbls

84,109302 Mbbls

2,006

Americas

Crude OilNatural Gas(excluding LPG)
Subtotal

7,888 MMcf

1,550

Crude OilNatural Gas(excluding LPG)
Total

Notes:

3,557
17,958 Mbbls

129,186

100,221 MMcf

82,587905 Mbbls

6,042

LPG
Other

6,087

Total

223,903

1. The above amounts do not include the related consumption tax.
2. The Company’s subsidiaries of which closing date for fiscal year is December 31 are principally consolidated their operating
results for the three months ended March 31, 2010 except those subsidiaries prepared their financial statements forconsolidation purpose as of the consolidation closing date. However, the significant effects of the difference in fiscal periods
were properly adjusted in consolidation.
3. Sales volumes are rounded to the nearest whole number.
4. Sales for major customers and sales as a percentage of total net sales are as follows. Sales amount of PERTAMINA
consists mostly of natural gas, and over half of them are sold to Japanese customers in the form of LNG.

Customer

PERTAMINA

For the three months ended

For the three months ended

June 30, 2009

June 30, 2010

Amounts

Ratio

Amounts

Ratio(Millions of yen）(％)

（Millions of yen）(％)

54,295― 16 ―

29.3

66,38329.7