Inpex Raises Profit Forecast on Strong Ichthys LNG Production

(Credit: Inpex)

Japan's biggest oil and gas explorer Inpex 1605.T on Thursday lifted its 2026 net profit forecast by 7.8% to a record 550 billion yen ($3.4 billion) on higher oil and gas prices and robust output at its Australian Ichthys liquefied natural gas project.

The revised forecast compares with its August estimate of 510 billion yen; net profit for the January-September period rose 38.9% from a year earlier to 407.6 billion yen, as higher energy prices and stronger Ichthys production offset lower Abu Dhabi crude sales amid the Iran war.

Ichthys LNG shipments in 2026 are expected to exceed the company's August forecast by several cargoes, Senior Executive Vice President Toshiaki Takimoto told reporters.

Ichthys Train 1 is scheduled to shut for maintenance for about six weeks from mid-July 2027.

Inpex's annual sales of Abu Dhabi crude are expected to fall by 50% this year from 2025.

The company's investment strategy for the Middle East remains unchanged as the region offers the cheapest and most abundant crude, Takimoto said.

The company will also consider investing in new supply sources in other regions to ensure stable supplies to Japan; it may consider supporting an expansion of the UAE's crude oil pipeline if requested, depending on whether it can ensure smooth shipments of crude from its equity interests, Takimoto said.

($1 = 159.7100 yen)

(Reuters - Reporting by Yuka Obayashi; Editing by Mrigank Dhaniwala)