Inpex Reports Record First-Half Profit Despite Abu Dhabi Disruption, Raises Dividend and Launches ¥140 Billion Buyback
Japanese energy producer posts ¥263.1 billion first-half profit on higher oil prices and Ichthys strength, offsetting 30% decline in Middle East sales volumes.
Record Earnings Amid Regional Turmoil
Inpex Corporation posted first-half profit attributable to owners of ¥263.1 billion for the six months ended June 30, 2026, up 17.7% year-over-year and marking a record high despite production disruptions stemming from the Middle East conflict (Other Financials filing, 2026-08-07). The Tokyo-listed energy producer credited higher oil prices and strong performance at its Ichthys LNG project for offsetting a sharp decline in Abu Dhabi crude oil sales volumes.
Sales volumes from Abu Dhabi operations fell approximately 30% year-over-year in the first half, with the company noting that "offshore fields continue to face partial shipping constraints" following closure of the Strait of Hormuz since March 2026 (Other Financials filing, 2026-08-07). Production has recovered to near-normal levels since June, though full-year sales volume outlook from the region remains approximately 30% lower than May forecasts.
Ichthys Delivers, Abadi Progresses
The Ichthys LNG project shipped 64 cargoes in the first half with "minimal" operational impact from a labor strike, achieving segment profit of ¥173.0 billion. Inpex now expects full-year LNG cargo shipments to "exceed previous guidance (annual average of approximately 10 cargoes per month) by several cargoes" despite planned temporary shutdowns in the second half (Other Financials filing, 2026-08-07). The company forecasts Ichthys segment profit of approximately ¥380.0 billion for fiscal 2026.
The company reported "significant progress" toward a targeted mid-2027 final investment decision for its Abadi LNG development in Indonesia. During the first half, Inpex completed front-end engineering design (FEED) for subsea umbilicals, risers and flowlines (SURF) and gas export pipeline (GEP), and in July commenced EPC tendering for SURF, GEP, FPSO and onshore LNG facilities. The company has signed heads of agreement with five LNG buyers and is "currently ongoing" with sales and purchase agreement negotiations (Other Financials filing, 2026-08-07).
Shareholder Returns Reach New High
Citing "record high full year forecasts and the view that the stock is undervalued," Inpex resolved to conduct share buybacks totaling ¥140.0 billion and raised its annual dividend per share forecast to ¥112 from ¥100, an increase of ¥12 year-over-year (Other Financials filing, 2026-08-07). The combined shareholder return represents a record high for the company, with total payout ratio expected at approximately 53%.
Full-year profit is forecast at ¥510.0 billion, also a record high, "supported mainly by higher sales prices and stable operations at Ichthys LNG" despite continued Middle East uncertainty. Operating cash flow is expected to reach ¥1,055.0 billion for the full year, with investing cash flow totaling approximately ¥859.0 billion including ¥200.0 billion set aside as additional cash reserves for Abadi LNG development (Other Financials filing, 2026-08-07).
The company maintained its three-year growth investment target of ¥1.9 trillion under its medium-term plan, with investments including additional equity in existing assets, acreage acquisitions in Australia's Beetaloo Sub-basin, and expansion projects in Abu Dhabi.
This article was generated by MarginX from the Other Financials filing on 2026-08-07. It is not investment advice.