Consolidated Financial Results for the Three Months ended June 30, 2005
August 11, 2005
Note: The following report is an English translation of the Japanese-language original.
Listed company’s name
INPEX CORPORATION(URL http://www.inpex.co.jp/)
Code number
1604: 1st Section of the Tokyo
Stock Exchange
Representative
Contact person

Naoki Kuroda, President
Seiya Ito, Director & General Manager, Corporate Planning & Management Dept.
TEL +81-3-5448-1238

1. Preparation of the Financial Results: No①Application of simplified accounting methods: Yes②Any changes in accounting policies from the latest fiscal year
Effective April 1, 2005, a new accounting standard "Impairment of Fixed Assets" is applied,which has no impact on the results of operations for the three months ended June 30, 2005
: Yes
③Any changes in scope of consolidation and equity method of accounting
Number of consolidated subsidiaries:(Newly included) (Excluded) 1
Number of affiliates accounted for by the equity method(Newly included) (Excluded) 2. Financial and Operating Results for the Three Months ended June 30, 2005 (April 1, 2005 through June 30, 2005)(1) Consolidated operating results
Note: Amounts less than one million yen are rounded off.
Net sales
Operating income
Ordinary income
Net income
For the three months ended Millions of yen% Millions of yen% Millions of yen% Millions of yen%
June 30, 2005
128,02131.3
73,32041.6
69,972
40.1
20,34735.9
June 30, 2004
97,536101.1
51,773155.7
49,945202.3
14,972117.8
For the year ended
478,586
268,662
258,631
76,493
March 31, 2005
Net income pershare—basic
For the three months ended
June 30, 2005
June 30, 2004
For the year ended
March 31, 2005
Notes:Net income pershare—diluted

Yen

Yen

10,598.82
8,120.64−−

40,255.92−

1. The percentage expressions for net sales, operating income, ordinary income and net income represent the change fromthe corresponding period of the previous year.
2. The Company’s subsidiaries or affiliates of which closing date for fiscal year is December 31 are principallyconsolidated their operating result for the three months ended March 31. However, the significant effects of thedifference in fiscal periods were properly adjusted in consolidation. For Japan Oil Development Co., Ltd. and its
affiliate, we consolidated their operating results, prepared for consolidation purposes, for the three months ended June30.
3. Average number of shares outstanding in each period (consolidated):Three months ended June 30, 2005; 1,919,832 shares
Three months ended June 30, 2004; 1,843,716 sharesYear ended March 31, 2005;
1,896,412 shares― 1 ―Reference: Non-consolidated operating results
Net sales
For the three months ended Millions of yen%
June 30, 2005
55,552
26.3
June 30, 2004
44,001
13.6
For the year ended
202,729
March 31, 2005

Operating income
Millions of yen

33,751
22,431
113,556

Ordinary income% Millions of yen

50.5
7.7

35,402
24,233
112,584

Net income% Millions of yen

46.1
38.8

16,385
11,207

%

46.2
56.0

50,765

Note: The percentage expressions for net sales, operating income, ordinary income and net income represent the change from thecorresponding period of the previous year.

(Qualitative Information on Consolidated Financial Results)
During the three months ended June 30, 2005, consolidated net sales increased ¥30,484 million, or 31.3%, to¥128,021 million from the corresponding period of the previous year. Consolidated net sales of crude oil increased¥17,038 million, or 29.7%, to ¥74,440 million. Consolidated net sales of natural gas increased ¥13,446 million, or
33.5%, to ¥53,580 million. The average crude oil price for the three months ended June 30, 2005 was US$49.93
per bbl, an increase of US$15.00 per bbl, or 42.9%, over the corresponding period in the previous year. The
average yen against the U.S. dollar for the three months ended June 30, 2005 was ¥107.62 per U.S. dollar with theappreciation of ¥2.08 per U.S. dollar, or 1.9%, over the corresponding period of the previous year. The increase inconsolidated net sales of crude oil and natural gas is mainly due to net effect of the following factors; Despite theslightly decrease in sales volume of crude oil and natural gas, which were negative impact on net sales in amountof ¥4.4 billion, there were positive impact on net sales in amount of ¥37.4 billion due to rising prices of crude oiland natural gas, in spite of negative impact on net sales in amount of ¥2.4 billion due to the appreciation of yen.
Cost of sales for the three months ended June 30, 2005 increased ¥7,935 million, or 18.6%, to ¥50,610 million
from the corresponding period of the previous year. Exploration expenses increased ¥819 million, or 113.9%, to¥1,538 million. Selling, general and administrative expenses increased ¥183 million, or 7.7%, to ¥2,551 million.
As a result, operating income increased ¥21,546 million, or 41.6%, to ¥73,320 million.
Other income for the three months ended June 30, 2005 increased ¥573 million, or 32.8%, to ¥2,321 million form
the corresponding period of the previous year. Meanwhile, other expenses increased ¥2,093 million, or 58.6%, to¥5,669 million because of the increase in foreign exchange loss of ¥2,366 million for the three months ended June30, 2005 over the corresponding period of the previous year on account of translation loss for the long-term debt inforeign currency due to the depreciation of yen. As a result, ordinary income for the three months ended June 30,2005 increased ¥20,026 million, or 40.1%, to ¥69,972 million.
Income taxes - current for the three months ended June 30, 2005 were ¥53,772 million, showing an increase of¥16,664 million, or 44.9%, from the corresponding period of previous year. The increase in income taxes – current
is primarily due to the increase in ordinary income and the change in tax scheme for crude oil production at a
certain field of ADMA Block. As a result of above effects, consolidated net income for the three months ended
June 30, 2005 increased ¥5,375 million, or 35.9%, to ¥20,347 million over the corresponding period of theprevious year.

(2) Consolidated financial position
Total assets
As of June 30, 2005
As of June 30, 2004
As of March 31, 2005

Note: Amounts less than one million yen are rounded off.
Shareholders’Shareholders’Shareholders’ equity per shareequityequity ratio

Millions of yen

Millions of yen

794,674
667,822779,227

424,435
348,918
411,295

Note:
Number of shares outstanding at the end of each period (consolidated):
As of June 30, 2005;
1,919,832 shares
As of June 30, 2004;
1,919,832 shares
As of March 31, 2005;
1,919,832 shares

― 2 ―

%

53.4
52.2
52.8

Yen

221,079.43
181,744.14
214,163.98

(Consolidated cash flows)
Operating activities
For the three months ended
June 30, 2005
June 30, 2004
For the year ended
March 31, 2005

Note: Amounts less than one million yen are rounded off.
Cash and cash
Investing activities Financing activities equivalents at the endof the period

Millions of yen

Millions of yen

Millions of yen

45,564
21,252(32,811)(19,858)605(4,267)

Millions of yen

143,560
104,989

131,206(119,956)

9,791

128,375

Consolidated total assets increased ¥15,446 million to ¥794,674 million as of June 30, 2005 from ¥779,227 million
as of March 31, 2005. Current assets decreased ¥1,846 million to ¥236,573 million mainly due to the decreases inaccounts receivable-trade in spite of increases in cash and deposits. Fixed assets increased ¥17,293 million to¥558,101 million mainly due to increases in recoverable accounts under production sharing.
Total liabilities increased ¥2,865 million to ¥335,514 million, minority interests in consolidated subsidiaries
decreased ¥558 million to ¥34,724 million and shareholders’ equity increased ¥13,139 million to ¥424,435 million.
As for cash flows during the three months ended June 30, 2005, net cash provided by operating activities increased¥24,311 million to ¥45,564 million from the corresponding period of the previous year mainly due to the pricerises of crude oil and natural gas. Meanwhile, net cash used for investing activities increased ¥12,953 million to¥32,811 million due to increases in development expenditure. Net cash provided by financing activities was ¥605
million. After adding ¥1,826 million for the effect of exchange rate changes on cash and cash equivalents, the netincrease in cash and cash equivalents during the three months ended June 30, 2005 totaled ¥15,185 million. Cashand cash equivalents at the end of the three months ended June 30, 2005 totaled ¥143,560 million by adding an
increase in cash and cash equivalents during the period and ¥128,375 million at the end of the previous fiscal year.

Reference: Non-consolidated financial position
Note: Amounts less than one million yen are rounded off.
Total assets
Shareholders’ equity Shareholders’ equity ratio
As of June 30, 2005
As of June 30, 2004
As of March 31, 2005

Millions of yen

Millions of yen

429,815
374,590417,978385,765
337,367
377,222[Accompanied materials]
1. Condensed Consolidated Balance Sheets
2. Condensed Consolidated Statements of Income
3. Condensed Consolidated Statements of Cash Flows
4. Production, Orders Received and Sales Performance

― 3 ―

%

89.8
90.1
90.2

[Reference]
Projected Operating Results for FY2006 (April 1, 2005 through March 31, 2006)(1) Semiannual (April 1, 2005 through September 30, 2005)
Net sales
Ordinary income
Net income
Millions of yen

Consolidated
Non-consolidated

286,000
113,000

Millions of yen

Millions of yen

163,000
71,00048,00033,000(2) FY2006 (April 1, 2005 through March 31, 2006)
Net sales
Ordinary income
Millions of yen

Consolidated
Non-consolidated

556,000
217,000

Net income

Millions of yen

Millions of yen

318,000
129,000

93,00060,000Net income per shareYen

25,002.18
17,189.00

Net income per share
Yen

48,441.73
31,252.73

Reference:
1. The projected net income per share for FY2006, the year ending March 31, 2006, is calculated basedon the expected average number of shares outstanding of 1,919,832 for the year.
2. The above forecasts are calculated based on the following assumptions:
Crude oil price (Brent)
2nd Quarter*
US$55.00/bbl（First-Half* US$53.90/bbl）
Second-Half * US$45.00/bbl（Full Year* US$49.45/bbl）

Foreign currency exchange 2nd Quarter:
rates
Second-Half:*2nd Quarter : July 1, 2005- September 30, 2005
Second-Half : October 1, 2005- March 31, 2006

¥110/US$¥105/US$First-Half : April 1, 2005-September 30, 2005
Full Year : April 1, 2005- March 31, 2006

Our crude oil prices are different for each crude oil, and there are also price difference between ourcrude oil price and price of Brent. Price differential are caused by its quality and its pricing range is
not constant due to the market conditions. Our crude oil prices are generally lower than Brent price.
*

The aforementioned projections are based on currently available information and contain many
uncertainties. Changing business conditions may cause actual results to differ from the above
forecasts.

― 4 ―1.Condensed Consolidated Balance Sheets

Accounts

As of March 31,
2005(A)
Amounts(Assets)
Current assets
Cash and deposits
Accounts receivable-tradeMarketable securities
Other
Total current assets
Fixed assets
Tangible fixed assets
Intangible assets
Investments and other assets
Investment securities
Recoverable accounts
under production sharing
Ohter

Ratio

Amounts％
136,575
53,33918,391
30,114
238,419
68,260138,631(Millions of yen)

As of June 30,
2005
(B)
Ratio

Fluctuation(B)-(A)As of June 30,
2004
Amounts％

30.6

151,760
40,635
21,39022,786
236,573

8.8
17.8

68,993
138,173

Ratio
％

29.8

15,185△12,703
2,999△7,327△1,846

114,129
38,401
14,77013,284
180,585

27.0

8.7
17.4

732
(457)

70,437
142,751

10.6
21.4

118,354

120,964

2,610

86,357

239,618

252,733

13,114

216,761

22,561

24,015

1,454

20,751Less allowance forrecoverable accounts
under production sharing(41,518)(41,664)(145)(44,856)

Less allowance forinvestments in exploration(5,101)(5,115)(14)(4,966)

Total investments and otherassets

333,91542.8

350,93444.1

17,019274,048

41.0

Total fixed assets
Total assets(Liabilities)
Current liabilities
Accounts payable
Current portion of long-term
debt
Income taxes payable
Other
Total current liabilities
Long-term liabilities
Long-term debt
Other
Total long-term liabilities
Total liabilities

540,807779,227

69.4
100.0

558,101
794,674

70.2
100.0

17,293
15,446487,237
667,822

73.0
100.0

(Minority interests)
Minority interests in consolidated
subsidiaries(Shareholders’ equity)
Capital stock
Additional paid-in capital
Retained earnings
Unrealized holding gain on
securities
Translation adjustments
Treasury stock
Total shareholders’ equity
Total liabilities, minority
interests and shareholders’equity20,12920,482352

13,524

2,262

2,330

67

116

49,93850,579122,91015.8

46,18941,043110,04513.8△3,748△9,536△12,864

28,97435,226
77,84011.7

175,603
34,134
209,738
332,64826.9
42.7

188,445
37,023
225,468
335,51428.4
42.2

12,841
2,888
15,7302,865

171,32136,095
207,417285,257

31.1
42.8

35,283

4.5

34,7244.4(558)

33,646

5.0

29,46062,402320,089

3.8
8.0
41.1

29,46062,402
333,622

3.7
7.8
41.9

―
―
12,532

29,46062,402
258,583

4.4
9.3
38.7

374

0.0

309

0.0

(64)

78

0.0

(1,031)(0)411,295

(0.1)
(0.0)
52.8

(358)
(0)
424,435

(0.0)
(0.0)
53.4

672
―
13,139(1,606)―
348,918

(0.2)
―
52.2

779,227100.0

794,674

100.0

15,446

667,822

100.0

― 5 ―

2. Condensed Consolidated Statements of Income

Accounts

Net sales
Cost of sales
Gross profit
Exploration expenses
Selling, general andadministrative expenses
Operating income
Other income
Interest income
Equity in earnings ofaffiliates
Other
Other expenses
Interest expense
Equity in losses of affiliates
Provision for allowance forrecoverable accounts under
production sharing
Amortization of explorationand development rights
Foreign exchange loss
Other
Ordinary income
Income before income taxes
and minority interests
Income taxes-current
Income taxes-deferred
Minority interests
Net income(Millions of yen)
For the three months For the three months
Fluctuation For the year ended
ended June 30, 2004 ended June 30, 2005(B) - (A)March 31, 2005
(B)
(A)
Amounts Ratio
Amounts Ratio Amounts
Amounts Ratio％％％
97,536 100.0
128,021 100.0
30,484
478,586 100.0
42,67443.8
50,610 39.5
7,935
197,094 41.2
54,861
56.2
77.410 60.5
22,549281,492 58.8
719
0.7
1,538
1.2
819
2,473
0.5
2,368

2.4

2,551

2.0

183

10,356

2.2

51,773
1,747
713

53.1
1.8

73,320
2,321
1,604

57.3
1.8

21,546573
891

268,662
4,738
4,060

56.1
1.0

310

―

(628)
2,093
580

678
14,769
2,983

―
1,034
3,575
543

310
3.7

405
5,669
1,124

4.4

3.1

35

―

(35)

1,583

104

57

(46)

518

890

22

(867)

1,606

1,798
203
49,945

51.2

4,164
299
69,972

54.7

2,366
96
20,0262,859
5,217
258,63154.0

49,94551.2

69,972

54.7

20,026258,63154.0

37,108(2,496)361
14,972

38.0
(2.6)
0.4
15.4

53,772(3,355)(792)
20,347

42.0
(2.6)
(0.6)
15.9

16,664(859)(1,153)
5,375

187,405(4,798)(468)
76,493

39.1
(1.0)
(0.1)
16.0

― 6 ―

3. Condensed Consolidated Statements of Cash Flows

Accounts

Cash flows from operating activities
Income before income taxes andminority interests
Depreciation and amortization
Provision for allowance forrecoverable accounts under production
sharing
Interest and dividend income
Interest expense
Foreign exchange (gain) loss
Equity in (earnings) losses of affiliates
Accounts receivable
Recovery of recoverable accounts
under production sharing (capital
expenditures)
Recoverable accounts under production
sharing (operating expenditures)
Other
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating
activities
Cash flows from investing activities
Proceeds from sales of marketablesecurities
Purchase of tangible fixed assets
Proceeds from sales of tangible fixed
assetsPurchase of investment securities
Investment in recoverable accounts
under production sharing (capital
expenditures)
Other
Net cash used in investing activities(Millions of yen)
For the three
For the three
Fluctuation For the year ended
months ended
months ended(B) - (A)March 31, 2005
June 30, 2004 (A) June 30, 2005 (B)Amounts

Amounts

Amounts

Amounts

49,94569,972

20,026258,631

2,748

2,814

66

12,960

180

145

(35)

573

(797)
543
3,977
35
(5,868)(1,768)
1,124
2,614
(310)
12,703(970)
580(1,362)(346)
18,572(4,203)
2,983
(474)
1,583
(20,806)

6,947

10,8203,873

38,375(2,214)(1,506)707(7,721)

3,989
59,488982(718)(38,499)

5,792
102,402
1,736(1,749)(56,824)

1,802
42,913754(1,031)(18,324)

14,900296,802
4,831(2,596)(167,831)

21,25245,56424,311

131,206

11,221

7,583(3,637)

18,896(4,140)(3,742)397(11,116)

353

161

(192)

352

(14,486)(12,566)

1,919(63,753)(12,726)(22,427)(9,701)(65,236)(80)(19,858)(1,818)(32,811)(1,738)(12,953)902(119,956)― 7 ―Accounts

Cash flows from financing activities
Proceeds from long-term debt
Proceeds from minority interests for
additional shares
Cash dividends paid
Other
Net cash provided by (used in )financing activities
Effect of exchange rate changes on cash andcash equivalents
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of
the period
Increase in cash and cash equivalents due toa share exchange transaction
Cash and cash equivalents at end of theperiodFor the three
For the three
Fluctuation For the year ended
months ended
months ended(B) - (A)March 31, 2005
June 30, 2004 (A) June 30, 2005 (B)Amounts

Amounts

Amounts

Amounts

1,274

8,110

6,836

15,611

488

316

(172)

1,488

(5,892)(137)(7,679)(141)(1,787)(3)(5,892)(1,416)(4,267)

605

4,873

9,791

(2,613)

1,826

4,440

(3,142)(5,486)15,185

20,672

17,89854,582

128,375

73,79354,58255,894―(55,894)

55,894

104,989

143,560

38,571

128,375― 8 ―4. Production, Orders Received and Sales Performance(1) Production
The following table shows production by business segment:
Business segment Category For the three months ended June 30, 2004 For the three months ended June 30, 2005
Millions of barrels
Millions of barrels
15.8
17.0
Crude oil(Thousands of barrels per day)(Thousands of barrels per day)
173.7
186.6
BCF
BCF
Crude oil and
74.5
71.2
Natural gas
natural gas(Millions of CF per day)(Millions of CF per day)
818.6
782.1
Millions of BOE
Millions of BOE
28.2
28.8
Total
(Thousands of BOE per day)(Thousands of BOE per day)
310.1
317.0
Notes: 1. The production volume of crude oil includes LPG..
2. The production by the Company’s affiliates accounted for by the equity method is included in the
figures above. Also the production is a result for the three months ended 30 June regardless of aclosing date on the basis of fiscal periods of its subsidiaries or affiliates.
3. The production volume of crude oil and natural gas involved in the production sharing contracts
entered by the INPEX Group corresponds to the net economic take of our group.
4. Production of Japan Oil Development Co., Ltd. that merged in May 2004 has been included from
April 2004.
5. BOE means barrels of oil equivalent.
(2) Orders received
The Company has no production by order.
(3) Sales performancea) We take back the full amount of crude oil produced under the production sharing contracts, and primarilysell it domestically to Japanese power companies and refining companies. We sell natural gas in the formof LNG and LPG to Japanese power companies and urban gas companies through PERTAMINA and also
sell a part to customers in South Korea, Taiwan and other countries. In addition, we sell natural gas to theIndonesian market through PERTAMINA.
b) The following table shows sales performance by business segment:(Millions of yen)
For the Three Months For the Three Months
Fluctuation
For the year ended
Business
Category
ended June 30, 2004 ended June 30, 2005
(B)-(A)
March 31,2005
segment(A)(B)

Crude oil andnatural gas

Note:

Crude oil

57,40274,44017,038293,143

Natural gas

40,13453,58013,446

185,443

Total

97,536

128,02130,484

478,586

1. LPG, which uses a natural gas as materials, is included in natural gas.
2. The above amounts do not include the related consumption tax.
3. An increase in actual sales is due to a rise in the price of crude oil and natural gas.
4. The Company’s subsidiaries of which closing date for fiscal year is December 31 are principallyconsolidated their operating result for the three months ended March 31. However, the significant
effects of the difference in fiscal periods were properly adjusted in consolidation. For Japan Oil
Development Co., Ltd., we consolidated their operating results, prepared for consolidation
purposes, for the three months ended June 30.

― 9 ―