Financial results summary

(As of February 13, 2025)

During the year ended December 31, 2024, the Japanese economy held to a trajectory of moderate recovery, driven mainly by improvements in the employment and income environments upon having emerged from the impact of the COVID-19 pandemic. On the other hand, Japan’s economy has been subject to downward pressure amid factors that include effects associated with high interest rates in Europe and the U.S. as well as economic slowdown in China. In addition, there are continuing concerns about the impacts of rising prices, governmental policy trends of the U.S., the situation in the Middle East, and fluctuations in financial and capital markets.
Of the international crude oil price indices, which significantly influence the financial performance of the Group, Brent crude (on a near-term closing price basis), considered a benchmark index for crude oil, started the current fiscal year at US$75.89 per barrel. Although there were periods of temporary volatility due to the effects of OPEC+ production cut easing and the backdrop of the Israel-Palestine conflict, prices subsequently trended downwards, reaching US$74.64 per barrel at the end of the fiscal year. The Group’s average crude oil sales price for the year ended December 31, 2024 reflected this shift and fell to US$81.20 per barrel, down US$1.63 from the previous fiscal year.
The foreign exchange market, another important factor that affects the business of the Group, began to trade at around ¥143 against the U.S. dollar for the year ended December 31, 2024. During the first half of the year, although the Bank of Japan lifted negative interest rates, the yen progressively depreciated on a largely consistent basis due to sustained accommodative monetary policy of Japan and robust U.S. economic indicators, reaching ¥161 by the end of June. After the Bank of Japan decided to raise its policy interest rate in late July, the yen appreciated to ¥140 in September given focus on the narrowing Japan-U.S. interest rate gap because of heightened speculation that the U.S. Federal Reserve might start lowering rates largely due to underperforming U.S. employment data. From October onwards, the yen depreciated because the Federal Reserve signaled a slower pace of rate cuts amid concerns that inflation would reignite due to the resilient U.S. economy and the policies of the next U.S. president. The telegraphic transfer middle (TTM) rate consequently closed at ¥158.17 against the U.S. dollar, a depreciation of ¥16.35 from the end of the previous fiscal year. Reflecting these situations, the average exchange rate of the Japanese yen against the U.S. dollar on consolidated revenue depreciated by ¥11.20 to ¥151.73 per U.S. dollar from the previous fiscal year.
Under this business environment, consolidated revenue for the year ended December 31, 2024 increased by ¥101.3 billion, or 4.7%, to ¥2,265.8 billion from the previous fiscal year due to the depreciation in the average exchange rate of the Japanese yen against the U.S. dollar during the period. Revenue from crude oil increased by ¥104.0 billion, or 6.5%, to ¥1,712.0 billion, and revenue from natural gas decreased by ¥2.7 billion, or 0.5%, to ¥525.1 billion. Sales volume of crude oil increased by 954 thousand barrels, or 0.7%, to 138,978 thousand barrels, and sales volume of natural gas decreased by 6,147 million cf, or 1.3%, to 473,667 million cf. Sales volume of overseas natural gas decreased by 6,268 million cf, or 1.6%, to 381,706 million cf, and sales volume of domestic natural gas increased by 3 million m 3 , or 0.1%, to 2,464 million m 3 (91,961 million cf). The average sales price of overseas crude oil decreased by US$1.63, or 2.0%, to US$81.20 per barrel. The average sales price of overseas natural gas increased by US$0.11, or 2.0%, to US$5.73 per thousand cf, and the average sales price of domestic natural gas decreased by ¥11.84, or 13.1%, to ¥78.24 per m 3 The average exchange rate of the Japanese yen against the U.S. dollar on consolidated revenue depreciated by ¥11.20, or 8.0%, to ¥151.73 per U.S. dollar.
The increase of ¥101.3 billion in revenue was mainly derived from the following factors: regarding revenue from crude oil and natural gas, an increase in sales volume contributing ¥6.7 billion to the increase, a decrease in unit sales price pushing sales down of ¥57.7 billion, the depreciation of the Japanese yen against the U.S. dollar contributing ¥152.3 billion to the increase. Meanwhile, cost of sales increased by ¥67.2 billion, or 7.9%, to ¥915.3 billion. Exploration expenses increased by ¥27.4 billion, or 106.0%, to ¥53.3 billion. Selling, general and administrative expenses increased by ¥38.7 billion, or 40.5%, to ¥134.5 billion. Other operating income increased by ¥10.7 billion, or 42.8%, to ¥35.8 billion, while other operating expenses decreased by ¥92.5 billion, or 74.6%, to ¥31.5 billion, and share of profit of investments accounted for using equity method increased by ¥86.4 billion, or 470.1%, to ¥104.8 billion. As a result, operating profit increased by ¥157.6 billion, or 14.1%, to ¥1,271.7 billion.
Finance income decreased by ¥67.8 billion, or 31.2%, to ¥149.4 billion. Finance costs increased by ¥44.3 billion, or 56.8%, to ¥122.4 billion. As a result, profit before tax increased by ¥45.4 billion, or 3.6%, to ¥1,298.8 billion.
Income tax expense decreased by ¥56.2 billion, or 6.1%, to ¥864.5 billion, and profit attributable to non-controlling interests decreased by ¥3.9billion, or 36.6%, to ¥6.8 billion, compared with loss attributable to non-controlling interests of ¥10.8 billion in the previous fiscal year. As a result of the above effects, profit attributable to owners of parent increased by ¥105.6 billion, or 32.8%, to ¥427.3 billion.

Results of operations by segment are as follows:
The change in reportable segments has been made from the year ended December 31, 2024, and, for comparative analysis with the year ended December 31, 2023, the figures disclosed for the year ended December 31, 2023 have been prepared based on the categories after the change.

Total assets as of December 31, 2024 increased by ¥641.3 billion to ¥7,380.8 billion from December 31, 2023. Current assets increased by ¥31.7 billion to ¥870.2 billion, mainly due to an increase in cash and cash equivalents. Non-current assets increased by ¥609.5 billion to ¥6,510.6 billion, mainly due to an increase in oil and gas assets.
Meanwhile, total liabilities increased by ¥2.5 billion to ¥2,243.0 billion from December 31, 2023. Current liabilities decreased by ¥38.5 billion to ¥533.6 billion and non-current liabilities increased by ¥41.1 billion to ¥1,709.3 billion. Total equity increased by ¥638.8 billion to ¥5,137.8 billion from December 31, 2023.
Total equity attributable to owners of parent increased by ¥612.7 billion to ¥4,821.8 billion, while non-controlling interests increased by ¥26.0 billion to ¥316.0 billion.

The Group’s cash and cash equivalents (hereinafter “cash”) amounted to ¥241.6 billion as of December 31, 2024, reflecting a net increased of ¥14.3 billion from ¥201.1 billion as of December 31, 2023, and the effect of exchange rate changes of ¥26.1 billion. Cash flows from operating, investing, and financing activities for the year ended December 31, 2024 and their factors are as follows.

(Billions of yen)

As for the Company’s financial outlook for the year ending December 31, 2025, revenue for the six months ending June 30, 2025 are expected to decrease 9.0% year-on-year to ¥1,084.0 billion, and revenue for the year ending December 31, 2025 are expected to decrease 6.5% year-on-year to ¥2,119.0 billion. Operating profit for the six months ending June 30, 2025 is expected to decrease 17.7% year-on-year to ¥576.0 billion, while operating profit for the year ending December 31, 2025 is expected to decrease 13.0% year-on-year to ¥1,106.0 billion.
Profit before tax for the six months ending June 30, 2025 is expected to decrease 15.9% year-on-year to ¥600.0 billion, and profit before tax for the year ending December 31, 2025 is expected to decrease 10.9% year-on-year to ¥1,157.0 billion. Profit attributable to owners of parent for the six months ending June 30, 2025 is expected to decrease 15.3% year-on-year to ¥180.0 billion, and profit attributable to owners of parent for the year ending December 31, 2025 is expected to decrease 22.8% year-on-year to ¥330.0 billion.
Revenue for the year ending December 31, 2025 is expected to decrease due to the assumptions for the sales price of crude oil being set lower year-on-year while the expectation that production activity in major projects such as Ichthys will generally be maintained at the same level as the previous year. Operating profit for the year ending December 31, 2025 is also expected to decrease due to a decrease in share of profit of investments accounted for using equity method because of planned shutdown maintenance in the Ichthys project. According to these reasons, profit before tax and profit attributable to owners of parent for the year ending December 31, 2025 are also expected to decrease year-on-year.
The above forecasts are based on an average crude oil price assumption of US$77.0 per barrel (Brent) for the first quarter of 2025, an average of US$75.0 per barrel (Brent) for the second quarter of 2025, an average of US$75.0 per barrel (Brent) for the third quarter of 2025, an average of US$73.0 per barrel (Brent) for the fourth quarter of 2025, and consequently an average of US$75.0 per barrel (Brent) for the year ending December 31, 2025. The average exchange rate assumption for the year ending December 31, 2025 is ¥153 to the U.S. dollar.

Based on the shareholder returns policy outlined in the Long-term Strategy and Medium-term Business Plan (INPEX Vision@2022) announced in February 2022, the Company has made it a policy to maintain stable dividend payouts during the period covered by the medium-term business plan from fiscal year 2022 to fiscal year 2024 with a total payout ratio of around 40% or greater, and a minimum annual dividend per share of ¥30, as well as to strengthen shareholder returns through means including the acquisition of own shares based on the Company’s business environment, financial base and management conditions, etc. In accordance with the policy stated above, the Company has set the year-end dividend at ¥43 per common stock for the year ended December 31, 2024. Combined with the mid-term dividend of ¥43 per common stock, the planned total dividends for the year ended December 31, 2024 are ¥86 per common stock. The Company has also set the year-end dividend at ¥17,200 per Class A stock for the year ended December 31, 2024. Combined with the mid-term dividend of ¥17,200 per Class A stock (unlisted), the planned total dividends for the year ended December 31, 2024 are ¥34,400 per Class A stock.
Based on the shareholder returns policy outlined in the Mid-term Business Plan 2025-2027 announced on February 13, 2025, our basic policy during the period of 2025 to 2027 is to aim for a total payout ratio of 50% or more, and to strengthen shareholder returns in line with growth in financial performance, by implementing a stable shareholder returns through introduction of a progressive dividend payout starting with ¥90 per share annually, and by implementing flexible share buybacks in line with the business environment and financial and management conditions.
For the year ending December 31, 2025, the Company expects mid-term and year-end dividends of ¥45 each, bringing the total dividends to ¥90 per common stock. The Company expects mid-term and year-end dividends of ¥18,000 each, bringing the total dividend to ¥36,000 per Class A stock.
The Company conducted a stock split at a ratio of 1:400 of common stock effective October 1, 2013. However, for Class A stock, 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.