Public Relations Group, Corporate Communications Unit
Akasaka Biz Tower, 5-3-1 Akasaka, Minato-ku, Tokyo 107-6332 JAPANMay 12, 2020

Announcement of Revision of Consolidated Financial Forecasts
for the Six Months Ending June 30, 2020 and Fiscal Year Ending
December 31, 2020 as well as Dividend Forecast
Tokyo, Japan - INPEX CORPORATION (INPEX) announced today the revision of its
consolidated financial forecasts for the six months ending June 30, 2020 and for thefiscal year ending December 31, 2020 announced on February 12, 2020.
1. Revision of consolidated financial forecasts for the six months ending June 30,
2020 (From January 1, 2020 to June 30, 2020)

Previous forecasts(February 12, 2020): A
Revised forecasts: B
Increase (decrease):
B-A
Percentage (%) change
Reference:
Consolidated financial results forthe six months ended

NetsalesOperatingincomeOrdinary
incomeNet income
attributableto owners ofparent

Net income
per share

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Yen

606,000
408,000

257,000
133,000

272,000
145,000

70,00035,000

47.94
23.97

△198,000△124,000△127,000△35,000

575,269

280,715

271,104

69,487

△32.7

△48.2

△46.7

△50.0

47.59

September 30, 2019

2. Revision of consolidated financial forecasts for the year ending December 31,
2020 (January 1, 2020 –December 31, 2020)
Net income
NetOperating
Ordinary
attributable to Net income
sales
incomeincomeowners ofper shareparentPrevious forecasts
Millions of yen
Millions of yen
Millions of yen
Millions of yen
Yen(February 12, 2020): A
1,204,000
499,000
536,000
145,000
99.30
Revised forecasts: B
710,000
172,000
163,000
10,000
6.85
Increase (decrease): B△494,000△327,000△373,000△135,000
APercentage (%) change△41.0
△65.5
△69.6
△93.1
Reference:
Consolidated financial results forthe year ended December 31,
2019

1,000,005

498,641

511,088

123,550

84.61

Public Relations Group, Corporate Communications Unit
Akasaka Biz Tower, 5-3-1 Akasaka, Minato-ku, Tokyo 107-6332 JAPAN3. Reasons for the revisions
The crude oil price outlook remains uncertain as a result of factors including the reduction
in global energy demand due to the impact of the growing number of COVID-19 cases,
despite OPEC+ reaching an agreement in early April 2020 to reduce production.
Given this situation, INPEX revised its consolidated financial forecasts for the six months
ending June 30, 2020 and its consolidated financial forecasts for the year ending
December 31, 2020 as a result of factors including the revision of its crude oil priceassumptions for the year*1 and underperformance in the first quarter owing to the oil pricedownturn, etc.
Due to the substantial decline in crude oil prices, INPEX is currently revaluating theassets of the INPEX Group. The company may recognize impairment losses on someassets mainly consisting of producing projects, depending on the outlook of crude oilprices and project plan reviews, etc. INPEX will issue an announcement as soon as it
determines that the company’s financial results are expected to be impacted.

1

Crude oil price and exchange rate assumptions
Previous Forecasts

Revised Forecasts(February 12, 2020)(May 12, 2020)

Crude oil price(Brent)

1st Half:
2nd Half:
Full Year:

US$ 60.0/bbl (Actual)
US$ 60.0/bbl
US$ 60.0/bbl (Average)

1st Half: US$ 40.4/bbl (Actual)
2nd Half: US$ 30.0/bbl
Full Year: US$ 35.2/bbl (Average)

Exchange rate

1st Half:
2nd Half:
Full Year:¥110.0/US$¥110.0/US$¥110.0/US$ (Average)

1st Half: ¥109.5/US$ (Actual)
2nd Half: ¥110.0/US$
Full Year: ¥109.7/US$ (Average)

NB: Forecasts above are based on information that is currently available and reflect uncertainties. The final
results may differ from the forecasts due to changes in business conditions including oil and natural gas
price levels, production and sales plans, project development schedules, government regulations andfinancial and tax schemes, etc.

4. Reasons and details of revision of dividend forecast
Based on the shareholder return policy outlined in the Medium-term Business Plan 20182022 formulated in May 2018, INPEX will seek in principle to maintain stable dividend
payouts and enhance shareholder returns in stages during the period covered by thebusiness plan in accordance with the improvement in the company’s financialperformance, with the payout ratio set at 30% or higher.

Public Relations Group, Corporate Communications Unit
Akasaka Biz Tower, 5-3-1 Akasaka, Minato-ku, Tokyo 107-6332 JAPANHowever, as outlined in sections 1 to 3 above, the consolidated financial forecasts forthe six months ending June 30, 2020 and for the fiscal year ending December 31, 2020
have been significantly revised downward. Based on this, INPEX expects the annual
dividend for the current fiscal year to amount to 24 yen per common stock (12-yen interim
dividend and 12-yen year-end dividend), a downward revision from the 36 yen percommon stock (18-yen interim dividend and 18-yen year-end dividend) forecasted at thebeginning of the fiscal year.
・Dividends of common stock
Cash dividends per share
End of 2nd quarterEnd of fiscal year

Total

Previous forecasts (February 12, 2020)

18.00 yen

18.00 yen

36.00 yen

Revised forecasts
Reference:
For the year ended

12.00 yen

12.00 yen

24.00 yen

12.00 yen

18.00 yen

30.00 yen

December 31, 2019Dividends for theyear ended December 31, 2019

INPEX will also revise the dividend for the year ending December 31, 2020 for Class A stock (notlisted).
・Dividends of Class A stock
Cash dividends per share
End of 2nd quarterEnd of fiscal year

Total

Previous forecasts (February 12, 2020)

7,200 yen

7,200yen14,400 yen

Revised forecasts
Reference:
For the year ended

4,800 yen

4,800 yen

9,600 yen

4,800 yen

7,200 yen

12,000 yen

December 31, 2019 Dividends for theyear ended December 31, 2019
(Note): INPEX conducted a stock split at a ratio of 1:400 of common stock effective October 1,
2013. However, for Class A stock (not listed), no stock split was implemented. The article
specifying that dividends of Class A stock are equivalent to dividends of common stock prior to
the stock split is included in the Articles of Incorporation.

Public Relations Group, Corporate Communications Unit
Akasaka Biz Tower, 5-3-1 Akasaka, Minato-ku, Tokyo 107-6332 JAPAN5. INPEX’s basic policy in response to the decline in oil prices
As the crude oil price outlook remains uncertain, INPEX will improve its free cash flow
through investment and cost reductions and further stabilize its financial base throughadditional financing in order to be able to sustain stable business operations even withoil prices maintaining their current level for a certain amount of time.
Regarding investment and cost reduction, INPEX aims to reduce investment in overall
development and exploration groupwide in fiscal year 2020 by over 20% and over 40%,
respectively, compared to initial forecasts, with plans to make further investment
reductions in the future. In addition, INPEX will make every effort to reduce the group’s
operating and general administrative costs to the extent possible.
INPEX has already secured liquidity through sufficient cash on hand and establishing acommitment line. Also, in terms of additional financing, the company plans to obtain aloan from the Development Bank of Japan under its crisis management and responsescheme directed at COVID-19 countermeasures, as part of its efforts to stabilize its
financial base. The loan is expected to be obtained in conjunction with loans from theprivate financial sector.
6. Impact of COVID-19 on INPEX’s operational sites and continuation of stable
operations
INPEX continues to maintain a stable supply of energy from its crude oil and natural gas
production operations around the world, while strengthening its countermeasuresagainst the spread of COVID-19. At INPEX-operated sites including Ichthys LNG Project
facilities in Australia and the Minami-Nagaoka Gas Field and Naoetsu LNG Terminal inJapan, stable operations and energy supply are being steadfastly maintained throughvarious initiatives including limited movement and other preventive measures against
infection, the isolation of operations personnel, site access restrictions and securing
backup personnel to mitigate workforce shortages due to infection. These initiatives are
all based on prioritizing the health and safety of employees and contractors.

Media Contact: INPEX Tokyo Office, Public Relations Group, Tel) +81-3-5572-0233