Inpex : Consolidated Financial Results for the Nine Months ended September 30, 2022

Consolidated Financial Results for the Nine Months ended September 30, 2022 [Japanese GAAP] November 8, 2022

Note: The following report is an English translation of the Japanese-language original.

Company name	: INPEX CORPORATION	Stock Exchange on which the Company is listed : Tokyo Stock Exchange
Code number	: 1605	URL https://www.inpex.co.jp
Representative	: Takayuki Ueda, President
Contact person	: Yoshihiro Wakita, General Manager, Corporate Communications Unit
	TEL [phone]
Scheduled date of filing Quarterly Financial Report	: November 9, 2022
Scheduled date of payment of cash dividends	: -
Preparation of supplementary explanatory materials	: Yes
Meeting of quarterly financial results presentation	: None

(Amounts less than one million yen are rounded off)

1. Consolidated Financial Results for the Nine Months ended September 30, 2022 (January 1, 2022 - September 30, 2022)

1. Consolidated operating results

(Figures in % represent the changes from the corresponding period of the previous fiscal year)

	Net sales		Operating income	Ordinary income	Net income attributable
		to owners of parent
For the nine months ended	Millions of Yen		%	Millions of Yen		%	Millions of Yen		%	Millions of Yen	%
September 30, 2022	1,698,743		100.0	915,892		127.6	1,027,661		140.5	267,429	94.2
September 30, 2021	849,214		43.3	402,376		110.3	427,269		114.7	137,722	-
(Note): Consolidated comprehensive income: for the nine months ended September 30, 2022, ¥964,243 million; [190.3%]
	for the nine months ended September 30, 2021, ¥332,138 million; [-%]
	Net income per	Net income per
	share-basic		share-diluted
For the nine months ended			Yen			Yen
September 30, 2022	193.66			-
September 30, 2021			94.32			-
(2) Consolidated financial position
	Total assets		Net assets		Net assets excluding non-controlling
			interests as a percentage of total assets
	Millions of Yen	Millions of Yen				%
As of September 30, 2022	6,840,511	4,190,518				57.7
As of December 31, 2021	5,158,196	3,346,409				60.6

(Reference): Net assets excluding non-controlling interests: as of September 30, 2022, ¥3,947,818 million as of December 31, 2021, ¥3,124,065 million

2. Dividends

		Cash dividends per share
	At 1st quarter end	At 2nd quarter end	At 3rd quarter end	At fiscal year end	Total
	Yen	Yen	Yen	Yen	Yen
For the year ended	-	20.00	-	28.00	48.00
December 31, 2021
For the year ending	-	30.00	-
December 31, 2022
For the year ending				30.00	60.00
December 31, 2022
(forecast)

(Notes): 1. Changes in projected dividends for the year ending December 31, 2022 from the previous forecast: None

2. "Dividends" as stated above refer to common stock. For information regarding Class A stock (not listed), please refer to Exhibit "Dividends of Class A stock."

3. Forecasts for Consolidated Financial Results for the year ending December 31, 2022 (January 1, 2022 - December 31, 2022)

(Figures in % represent the changes from the corresponding period of the previous fiscal year)

								Net income		Net income
	Net sales		Operating income	Ordinary income	attributable to
		per share
								owners of parent
	Millions of Yen		%	Millions of Yen	%	Millions of Yen	%	Millions of Yen		%	Yen
For the year ending	2,302,000		85.0	1,241,000	110.1	1,370,000	108.3	400,000		79.3	292.58
December 31, 2022

(Notes): 1. Changes in forecasts for consolidated financial results for the year ending December 31, 2022 from the previous forecast: Yes

2. The effect of the acquisition of own shares decided at the meeting of the Board of Directors held on August 8, 2022 is taken into account in the calculation of "Net income per share."

Notes
(1)	Significant changes in scope of consolidation	: None
		(Changes in the specified subsidiaries during the period due to change in scope of consolidation)
(2)	Adoption of accounting treatments which are exceptional for quarterly consolidated financial statements	: None
(3)	Changes in accounting policies, accounting estimates and restatement of corrections
1.	Changes in accounting policies resulting from the revision of the accounting standards and other regulations	: Yes
2.	Other changes in accounting policies	: None
3.	Changes in accounting estimates	: Yes
4.	Restatement of corrections	: None

(Note): Please refer to "2. Consolidated Financial Statements and Principal Notes (3) Notes to Consolidated Financial Statements (Changes in Accounting Policies) and (Changes in Accounting Estimates)" on pages 8 and 9 for further information.

(4)	Number of shares issued (Common stock)
1.	Number of shares issued at the end of the period	1,386,667,167 shares as of September 30, 2022
	(including treasury stock):	1,462,323,600 shares as of December 31, 2021
2.	Number of treasury stock at the end of the period:	37,619,463 shares as of September 30, 2022
		75,805,993 shares as of December 31, 2021
3.	Average number of shares:	1,380,953,337 shares for the nine months ended September 30, 2022
		1,460,206,019 shares for the nine months ended September 30, 2021

(Note): The shares held by "the Board Incentive Plan Trust" are included in number of treasury stock at end of period. (As of September 30, 2022: 910,363 shares As of December 31, 2021: 149,593 shares)

*This quarterly earnings report is not subject to audit by certified public accountants or audit firms.*Explanation regarding the appropriate use of estimated consolidated financial results

The aforementioned forecasts are based on the currently available information and contain many uncertainties. The final results might be significantly different from the aforementioned forecasts due to changes in business conditions including oil and natural gas price levels, production and sales plans, project development schedules, government regulations and financial and tax schemes. Regarding the forecasts, please refer to "1. Qualitative Information / Financial Statements (3) Explanation regarding future forecast information such as Forecasts for Consolidated Financial Results" on page 3.

Exhibit:

Dividends of Class A stock

		Cash dividends per share
	At 1st quarter end	At 2nd quarter end	At 3rd quarter end	At fiscal year end	Total
	Yen	Yen	Yen	Yen	Yen
For the year ended	-	8,000.00	-	11,200.00	19,200.00
December 31, 2021
For the year ending	-	12,000.00	-
December 31, 2022
For the year ending				12,000.00	24,000.00
December 31, 2022
(forecast)

(Note): The Company conducted a stock split at a ratio of 1:400 of common stock effective October 1, 2013. However, for Class A stock (not listed), no stock split was implemented. The article specifying that dividends of Class A stock are equivalent to dividends of common stock prior to the stock split is included in the Articles of Incorporation.

Index of the Attachments
1. Qualitative Information ∕ Financial Statements......................................................................................................................................	2
(1)	Explanation on Consolidated Financial Results...............................................................................................................................	2
(2)	Explanation on Consolidated Financial Position..............................................................................................................................	3
(3)	Explanation regarding future forecast information such as Forecasts for Consolidated Financial Results ......................................	3
2. Consolidated Financial Statements and Principal Notes........................................................................................................................	4
(1)	Consolidated Balance Sheet.............................................................................................................................................................	4
(2)	Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ..........................................................	6
Consolidated Statement of Income....................................................................................................................................................	6
Consolidated Statement of Comprehensive Income ..........................................................................................................................	7
(3)	Notes to Consolidated Financial Statements....................................................................................................................................	8
(Conditions or events that indicate there could be substantial doubt about the Company's ability to continue as a going concern).8
(Note on significant changes in shareholders' equity).......................................................................................................................	8
(Changes in Accounting Policies) .....................................................................................................................................................	8
(Changes in Accounting Estimates)...................................................................................................................................................	9
(Additional Information) ...................................................................................................................................................................	9
(Segment Information and Others) ..................................................................................................................................................	10
(Significant Subsequent Events)......................................................................................................................................................	11
3. Supplementary Information.................................................................................................................................................................	12
(1)	Production, Orders Received and Sales Performance ....................................................................................................................	12

- 1 -

1. Qualitative Information ∕ Financial Statements

1. Explanation on Consolidated Financial Results
   Net sales for the nine months ended September 30, 2022 increased by ¥849.5 billion, or 100.0%, to ¥1,698.7 billion from the corresponding period of the previous fiscal year due to an increase in sales price of crude oil and natural gas. Net sales of crude oil increased by ¥697.0 billion, or 112.2%, to ¥1,318.3 billion, and net sales of natural gas increased by ¥149.0 billion, or 69.0%, to ¥365.1 billion. Sales volume of crude oil increased by 15,773 thousand barrels, or 18.1%, to 102,921 thousand barrels, and sales volume of natural gas decreased by 16,605 million cf, or 4.9%, to 322,299 million cf. Sales volume of overseas natural gas decreased by 12,831 million cf, or 4.7%, to 260,035 million cf, and sales volume of domestic natural gas decreased by 101 million m3, or 5.7%, to 1,668 million m3 (62,264 million cf). The average sales price of overseas crude oil increased by US$34.24, or 52.2%, to US$99.83 per barrel. The average sales price of overseas natural gas increased by US$2.59, or 56.9%, to US$7.14 per thousand cf, and the average sales price of domestic natural gas increased by ¥32.48, or 76.3%, to ¥75.04 per m3. The average exchange rate of the Japanese yen against the U.S. dollar on consolidated net sales depreciated by ¥19.65, or 18.1%, to ¥128.33 per U.S. dollar.
   The increase of ¥849.5 billion in net sales was mainly derived from the following factors: regarding net sales of crude oil and natural gas, an increase in sales volume contributing ¥96.5 billion to the increase, an increase in unit sales price contributing ¥511.6 billion to the increase, the depreciation of the Japanese yen against the U.S. dollar contributing ¥237.8 billion to the increase, and an increase in net sales excluding crude oil and natural gas of ¥3.4 billion.
   Meanwhile, cost of sales increased by ¥295.8 billion, or 76.7%, to ¥681.3 billion. Exploration expenses increased by ¥19.1 billion, or 473.3%, to ¥23.1 billion. Selling, general and administrative expenses increased by ¥21.0 billion, or 36.8%, to ¥78.3 billion. As a result, operating income increased by ¥513.5 billion, or 127.6%, to ¥915.8 billion.
   Other income increased by ¥160.8 billion, or 251.3%, to ¥224.8 billion due to an increase in equity in earnings of affiliates and others. Other expenses increased by ¥73.9 billion, or 189.1%, to ¥113.0 billion due to posting modification loss on financial assets and others. As a result, ordinary income increased by ¥600.3 billion, or 140.5%, to ¥1,027.6 billion.
   Extraordinary loss was ¥18.2 billion as a result of posting impairment loss for a certain project due to the downward revision in forecasted production volume and others. Total amount of current income taxes and deferred income taxes increased by ¥451.3 billion, or 150.7%, to ¥750.8 billion, and net loss attributable to non-controlling interests was ¥8.8 billion. As a result of the above effects, net income attributable to owners of parent increased by ¥129.7 billion, or 94.2%, to ¥267.4 billion.

Financial results by segment are as follows:

1. Japan
   Net sales increased by ¥53.1 billion, or 59.0%, to ¥143.2 billion due to an increase in sales price of crude oil and natural gas. Operating loss was ¥16.9 billion compared with ¥8.9 billion of operating income for the corresponding period of the previous fiscal year due to an increase in cost of sales.
2. Asia & Oceania
   Net sales increased by ¥127.7 billion, or 54.0%, to ¥364.6 billion due to an increase in sales price of crude oil and natural gas. Operating income increased by ¥81.9 billion, or 73.5%, to ¥193.3 billion.
3. Eurasia (Europe & NIS)
   Net sales increased by ¥160.6 billion, or 193.8%, to ¥243.5 billion due to increases in sales volume and sales price of crude oil. Operating income increased by ¥117.7 billion, or 593.0%, to ¥137.5 billion.
4. Middle East & Africa
   Net sales increased by ¥497.9 billion, or 118.2%, to ¥919.2 billion due to increases in sales volume and sales price of crude oil. Operating income increased by ¥331.9 billion, or 125.0%, to ¥597.6 billion.
5. Americas
   Net sales increased by ¥9.9 billion, or 55.4%, to ¥28.0 billion due to an increase in sales price of crude oil. Operating income increased by ¥7.0 billion, or 85.0%, to ¥15.3 billion.

- 2 -