Top Japanese energy developer Inpex saw its net profit sink at a double-digit pace in the first quarter of fiscal 2018, which started on April 1. Results suffered on lower oil and gas sales volumes, despite higher crude prices.
Inpex posted a net profit of 16.812 billion yen (US$153 million) on a consolidated basis in the April-June quarter, down 16% from the same three-month period of 2017, according to the company’s quarterly financial results released on August 9.
The sharp profit decline came as group revenue shrank 7.1% year on year to 202.351 billion yen (US$154.4 million). Inpex’s oil and gas sales volumes are understood to have shrunk in the April-June quarter on a year-on-year basis because the company lost some upstream assets in Indonesia, including a significant stake in the Mahakam block in East Kalimantan.
Indonesia’s state-owned Pertamina took over the Mahakam block after the block’s production-sharing contract (PSC) expired on December 31, 2017. Previously, France’s Total had been the operator with a 50% share, while Inpex held the remaining 50% stake in the block.
In terms of value, Inpex’s crude oil sales reached 169.4 billion yen (US$129.3 million) in the April-June quarter, up 8% on a year earlier, while its natural gas sales amounted to 29.1 billion yen (US$22.2 million), down 49.7% year on year.
In terms of volume, the company’s crude oil sales achieved 22.07 million barrels in the three-month period, down 18.5% from a year earlier, while natural gas sales amounted to 35.18 bcf (996 mcm), down 54.3% year on year.
Of the natural gas sold by Inpex in the April-June quarter, 17.46 bcf (494.5 mcm) was produced abroad, down 70.8% from a year earlier, while the remaining 17.715 bcf (501.7 mcm) was produced in Japan, up 3.3% year on year.
In the quarter, Inpex’s foreign oil production was sold at an average of US$70.52 per barrel, up 37.8% on the year, while natural gas produced abroad went for US$2.94 per 1,000 cubic feet (US$83.3 per 1,000 cubic metres), down 45.8%.