Inpex Slumps to First Annual Loss in 12 years


February 10, 2021
For illustration only - Inpex's Ichthys Central Processing Platform (File Photo: Inpex)

For illustration only - Inpex's Ichthys Central Processing Platform (File Photo: Inpex)

Japan's biggest oil and gas explorer Inpex Corp posted a net loss of 111.7 billion yen ($1.1 billion) in 2020 as the COVID-19 pandemic hammered oil prices, cutting its sales and forcing it to book hefty impairment losses.

The result marks Inpex's first net loss since its foundation in 2008 through the merger of Inpex, Teikoku Oil and Inpex Holdings.

"It was a very tough year," Daisuke Yamada, Inpex's managing executive officer, told a news conference. "A plunge in oil prices hit our earnings hard."

Annual sales fell by 400 billion yen, or 34% from a year earlier, to 771 billion yen, 90% of which was due to lower oil prices, he said.

Pandemic-related travel restrictions cut fuel demand and triggered a plunge in oil prices last year. The average Brent crude price in 2020 fell by 33% from 2019 to $43.21 a barrel, the company said.

That led to an impairment loss of 189.9 billion yen on its oil and gas assets, including a 129 billion yen writedown on the Prelude floating liquefied natural gas (LNG) project operated by Shell off northwestern Australia.

But with oil prices recovering sharply, Inpex predicted a return to a net profit of 100 billion yen this year, assuming an average Brent price of $53 a barrel.

Sales are expected to increase 14.5% to 883 billion yen, it said.

The company forecast its oil sales volume to drop 4.7% year on year but its sales volume of gas to rise 3%, despite scheduled maintenance around May-June at the Ichthys LNG project that it operates in Australia.

($1 = 104.7100 yen)

(Reporting by Yuka Obayashi; Editing by Jan Harvey)

No comments

More Popular Posts

About Crude Oil Brokers Ltd

Crude Oil Brokers Ltd is a dedicated global broker and facilitator of crude oil buying and selling. We work directly with crude oil buyers and crude oil sellers worldwide. We are a United Kingdom and Nigerian based firm, privately owned and devoted to the brokering of crude oil and other petroleum products buying and selling.

We have buyers and sellers of;

1. Nigerian Bonny Light Crude Oil, BLCO

2. D2 Diesel Fuel, JP54 Jet Fuel, Mazut etc.

3. Saudi Light Crude Oil, SLCO

4. Iraqi Light Crude Oil

If you are a buyer or seller of crude oil or other petroleum products or have mandate to buy or sell any of the above oil products, do contact us because we could be of help.

To contact Crude Oil Brokers, click here ». To learn more about Crude Oil Brokers Ltd, click here

Crude Oil Brokers