BAKU, Azerbaijan, May 15. INPEX Corporation, Japan's largest oil and gas exploration and production company, announced its consolidated financial results for the first quarter ending March 31, 2024, Trend reports.
The company reported a revenue increase of ¥18.7 billion, or 3.3%, reaching ¥596.8 billion compared to the same period last year. This growth was primarily driven by the depreciation of the Japanese yen against the U.S. dollar.
Revenue from crude oil saw a significant boost, rising by ¥50.8 billion, or 12.7%, to ¥450.1 billion. This was attributed to a 1.8% increase in sales volume, totaling 37,338 thousand barrels. Conversely, natural gas revenue experienced a decline, dropping by ¥32.5 billion, or 18.7%, to ¥141.1 billion, despite a 2.1% increase in sales volume to 130,976 million cubic feet (cf).
The average sales price of overseas crude oil fell slightly by US$1.08, or 1.3%, to US$81.12 per barrel, while the average price for overseas natural gas decreased significantly by US$1.37, or 20.4%, to US$5.36 per thousand cf. Domestic natural gas prices also saw a notable reduction, falling by ¥33.60, or 30.4%, to ¥77.07 per cubic meter.
The depreciation of the yen against the U.S. dollar contributed significantly to the revenue increase, adding ¥58.4 billion. However, this was partly offset by a ¥52.2 billion decrease due to lower unit sales prices. Overall, crude oil and natural gas sales volume increases contributed ¥12.1 billion to the revenue growth.
On the expense side, the cost of sales rose by ¥10.5 billion, or 4.6%, to ¥238.5 billion. Exploration expenses surged by ¥2.7 billion, or 143.0%, reaching ¥4.7 billion. Selling, general, and administrative expenses increased by ¥6.2 billion, or 24.0%, to ¥32.3 billion. Other operating income increased by ¥0.9 billion, or 8.1%, to ¥12.1 billion, while other operating expenses decreased by ¥4.1 billion, or 52.1%, to ¥3.7 billion. The share of profit from investments accounted for using the equity method rose by ¥1.0 billion, or 2.2%, to ¥50.4 billion.
Despite the revenue increase, the company's operating profit saw a modest rise of ¥5.3 billion, or 1.4%, totaling ¥380.1 billion. However, profit before tax fell by ¥4.3 billion, or 1.1%, to ¥372.9 billion, influenced by a substantial increase in finance costs, which more than doubled to ¥41.3 billion, up by ¥22.0 billion, or 114.5%. Finance income also grew significantly by ¥12.4 billion, or 57.2%, to ¥34.1 billion.
Income tax expenses climbed by ¥25.8 billion, or 11.6%, to ¥249.3 billion. Profit attributable to non-controlling interests decreased sharply by ¥5.2 billion, or 74.8%, to ¥1.7 billion. Consequently, the profit attributable to owners of the parent company declined by ¥24.9 billion, or 17.0%, to ¥121.8 billion.
Follow the author on X: @Lyaman_Zeyn