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

August 6, 2020

Recognition of Impairment Losses, Differences between Consolidated
Financial Forecasts and Actual Financial Results for the Six Months Ended
June 30, 2020 and Revision of Consolidated Financial Forecasts for the Fiscal
Year Ending December 31, 2020
Tokyo, Japan - INPEX CORPORATION (INPEX) announced today the differences between its
consolidated financial forecasts for the six months ended June 30, 2020 announced on May 12,2020 and the actual results announced today in the “Consolidated Financial Results for the Six
Months ended June 30, 2020.” In addition, INPEX also revised its consolidated financial forecasts
for the fiscal year ending December 31, 2020 announced on May 12, 2020.
1. Differences between consolidated financial forecasts and actual financial results forthe six months ended June 30, 2020 (From January 1, 2020 to June 30, 2020)

Previous forecasts(May 12, 2020): A
Actual results: B
Increase (decrease): B-A
Percentage (%) changeNetsales

Operatingincome

OrdinaryincomeNet incomeattributable toowners ofparent

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Yen

408,000
391,683△16,317△4.0

133,000
123,799△9,201△6.9

145,000
149,276
4,276
2.9

35,000△120,799△155,799―

23.97△82.73575,269

280,715

271,104

69,48747.59

Net income
per share

Reference: Consolidated financial
results for the six months ended
September 30, 2019

2. Revision of consolidated financial forecasts for the year ending December 31,2020(January 1, 2020 –December 31, 2020)
NetsalesPrevious forecasts(May12, 2020): A
Revised forecasts: B
Increase (decrease): B-A
Percentage (%) change

OperatingincomeOrdinary
incomeNet income
attributable toowners ofparent

Net income
per share

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Yen

710,000
730,000
20,0002.8

172,000
203,000
31,00018.0

163,000
200,000
37,00022.7

10,000△136,000△146,000―

6.85△93.141,000,005

498,641

511,088

123,550

84.61

Reference: Consolidated financial
results for the year ended December
31, 2019

Note: Due to the change in the Company’s fiscal year-end from March 31 to December 31, the consolidated accounting periodof the Company and its subsidiaries with provisional settlements of accounts for the fiscal year ended December 31, 2019 is
the nine-month period between April 1 and December 31, 2019. Meanwhile, the accounting period (for the same fiscal year) of
subsidiaries with a December 31 fiscal year-end is the twelve-month period between January 1 and December 31, 2019.
“Subsidiaries with provisional settlements of accounts” refers to subsidiaries with December 31 fiscal year-ends thatprovisionally settled their accounts on March 31 due to their relatively large impact on the consolidated financial results.

3. Reasons for the differences and revisions
As for the consolidated financial results for the six months ended June 30, 2020 (hereinafter “2QFY2020”), due to the substantial decline in crude oil prices resulting from the COVID-19-induced
reduction in global energy demand and other factors, INPEX revaluated the assets of the INPEXGroup and recognized impairment losses of 192.4 billion yen (with a net income impact ofapproximately 162.7 billion yen after incorporating tax effect) as outlined in section 4 (Recognizedimpairment losses) below. This in part caused the actual financial results for 2Q FY2020 to fall
below the forecasts announced on May 12, 2020.
INPEX also revised its consolidated financial forecasts for the year ending December 31, 2020 tominus 136 billion yen in net income attributable to owners of parent, down 146 billion yen comparedto the previous forecast. This revised forecast incorporates the actual financial results for 2Q
FY2020 and reflects the impairment losses recognized in 2Q FY2020, despite positive factors due
in part to revised crude oil price assumptions for the second half of FY2020.

Crude oil price and exchange rate assumptions
Previous forecasts(May 12, 2020)

Revised forecasts(August 6, 2020)

Crude oil price(Brent)

1st half (assumed):
US$ 40.4/bbl
2nd half (assumed):
US$ 30.0/bbl
Full year average (assumed): US$ 35.2/bbl

1st half (actual):
2nd half (assumed):
Full year average (assumed):

US$ 42.1/bbl
US$ 40.0/bbl
US$ 41.1/bbl

Exchange rate(US$/JPY)

1st half (assumed):¥109.5/US$
2nd half (assumed):¥110.0/US$
Full year average (assumed): ¥109.7/US$

1st half (actual):
2nd half (assumed):
Full year average (assumed):¥108.3/US$¥105.0/US$¥106.6/US$

Note: 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 and financial and tax schemes, etc.

4. Recognized impairment losses(1) Breakdown of recognized impairment losses (in billions of yen)
AssetsRecognized Impairment losses

Prelude FLNG Project *1

130.8

Tight Oil Project (Eagle Ford) *2

33.6

Lucius Oil Field *3

18.9

Bayu Undan Project *4

8.9

Total amount

192.4
Impact on net income attributable to owners of the parent △162.7*1 INPEX is a participant through INPEX Oil & Gas Australia Pty Ltd., a subsidiary. The project produces, liquefies andships hydrocarbons using a floating liquefied natural gas (FLNG) facility. Shipment of condensate and LNG
commenced in 2019.
*2 INPEX is a participant through INPEX Eagle Ford, LLC, a subsidiary. The project involves developing and producing
shale oil as operator.
*3 INPEX is a participant through INPEX Americas, Inc., a subsidiary. Production of crude oil and natural gas commencedin 2015.
*4 INPEX is a participant through INPEX Sahul., Ltd., a subsidiary. Production and shipment of condensate and LPG
commenced in 2004. Production and shipment of LNG commenced in 2006.

(2) Circumstances and reasons behind the impairment losses
Impairment tests were conducted on the business assets listed above in light of the deteriorating
business environment due to the decline in oil prices and other factors. These tests determined thatthe assets’ recoverable amounts fell below their book values. As a result, the assets’ book values
were reduced to equal their recoverable amounts, and the reductions were recognized as
impairment losses.

5. Dividend forecast
There is no change to the dividend forecast announced on May 12, 2020. INPEX expects the annual
dividend for the current fiscal year to amount to 24 yen per common stock (12-yen interim dividendand 12-yen year-end dividend).

6. Progress on cost reduction efforts
As announced on May 12, 2020, INPEX’s basic policy in response to the decline in oil prices is toreduce investment in overall development and exploration groupwide in fiscal year 2020 by over20 percent and over 40 percent, respectively, compared to initial forecasts. The company has madesufficient progress so far to expect to reduce investment in overall development and exploration by
over 30 percent and over 50 percent, respectively, and will continue its cost reduction efforts.

7. Impact of COVID-19 on INPEX’s operational sites and sustaining stable supplies
INPEX continues to maintain a stable supply of energy from its crude oil and natural gas production
operations around the world, while strengthening its countermeasures against the spread ofCOVID-19. The INPEX-operated Ichthys LNG Project in Australia instituted measures to prevent
infection at an early stage by adopting special shifts including isolation periods, monitoring andregulating access to work sites and imposing restrictions and requirements on LNG vessel
operations. At the Minami-Nagaoka Gas Field and Naoetsu LNG Terminal in Japan, stable
operations and energy supply are being steadfastly maintained through various initiatives includingsite access restrictions and securing backup personnel to mitigate workforce shortages due toinfection. These initiatives are all based on prioritizing the health and safety of employees andcontractors.

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