Inpex Corporation

INPEX has revised its consolidated net profit forecast for the fiscal year ending December 2026 upward to 510 billion yen, a 29.5 percent increase from the previous year, compared with the earlier range of 350 billion to 450 billion yen. This exceeds the average analyst estimate of 470.4 billion yen from 11 analysts. The company also raised its annual dividend forecast from 108 yen to 112 yen. The upgrade reflects solid production at the Ichthys LNG project in northern Australia, while revised assumptions for crude oil prices and foreign exchange rates from the third quarter onward are also boosting performance.

INPEX announced on the 7th a share buyback of up to 50 million shares, representing 4.3% of outstanding shares, with a maximum value of 140 billion yen. The aim is to improve capital efficiency and enhance shareholder returns, with the acquisition period running from the 10th to December 31.

On the 24th, the Nikkei Average opened lower, falling 838.35 yen to 65,584.25 yen. The sharp continued decline of major indices in the US stock market the previous day weighed on sentiment, while rising crude oil prices due to escalating tensions in the Middle East and an increase in domestic long-term interest rates also capped stocks. Meanwhile, although the yen weakened to the 163.80 range against the dollar and there were expectations for the full-fledged start of April-June earnings announcements from major domestic companies, selling dominated at the open. Among the top traded issues on the Tokyo Stock Exchange Prime Market, Disco, SoftBank Group, and Advantest declined, while Takeda Pharmaceutical and INPEX rose.

Yemen's Iran-backed Houthi group announced it attacked two Saudi oil tankers near the Bab el-Mandeb Strait in the Red Sea, heightening fears of a double blockade that would affect safe passage through both the critical energy chokepoint of the Strait of Hormuz and its alternative route, the Red Sea. In light of this development, energy-related companies such as INPEX, Japan Petroleum Exploration, JGC Holdings, and Chiyoda Corporation are likely to draw attention.

Mitsui Matsushima Holdings, Ferrotec, Aun, and others hit limit up. Mitsui Matsushima Holdings announced upward revisions to its earnings and dividend forecasts, raising its operating profit for the fiscal year ending March 2027 from 9.7 billion yen to 10 billion yen, net profit from 7.1 billion yen to 8.6 billion yen, and increasing its annual dividend from 74 yen to 130 yen. Ferrotec revised its operating profit forecast for the fiscal year ending December 2026 upward from 38 billion yen to 60 billion yen, driven by increased demand for semiconductor material products and thermomodules for AI data centers. Aun announced the start of operational support for ChatGPT advertising, providing assistance from planning to performance measurement for ad delivery in seven countries including Japan. AI Mechatronics received an order worth approximately 2.5 billion yen for a solder ball mounter system from a major overseas semiconductor manufacturer, with sales to be recorded in the fiscal year ending June 2028. UBS Securities initiated coverage on Tecsend with a buy rating and a target price of 5,300 yen, citing benefits from expanding investment in logic. AZ Maruwa Holdings announced the establishment of a shareholder benefit program and a capital and business alliance with JPYC, while INPEX extended significant gains on the back of higher crude oil prices due to escalating tensions in the Middle East. Obic posted a 15.7 percent year-on-year increase in first-quarter operating profit to 24.9 billion yen, but the surprise was limited and gains were capped. Bronco B saw first-half operating profit rise 57.5 percent to 1.93 billion yen and revised its full-year forecast upward, but the market reaction was muted. Tokai Tokyo Intelligence Lab raised its target price on Nihon Dempa Kogyo to 4,100 yen, amid heightened expectations related to generative AI.

ADNOC has finalized a 15-year sales and purchase agreement to supply one million tonnes per annum of liquefied natural gas to Inpex from the Ruwais LNG project. The Ruwais LNG project, located in Al Ruwais Industrial City, is due to begin commercial operations in 2028. With this contract, long-term commitments now cover more than 90% of the project's projected 9.6 million tonnes per annum production capacity, with Japanese customers accounting for nearly 23% of that committed volume. The agreement marks the first long-term LNG deal announced following the launch of ADNOC and XRG's integrated global LNG marketing and trading platform. Ruwais LNG is expected to become the first LNG export plant in the Middle East and Africa region to run on clean power and will utilize AI and advanced technologies for safety and emissions management.

TotalEnergies has agreed to acquire a 10% interest in the Bab Gas Cap Concession in Abu Dhabi, while also divesting its minority stake in Malaysia's Marjoram gas field to INPEX and launching MethaneLive, a global real-time methane emission monitoring center. The Bab Gas Cap entry gives TotalEnergies more exposure to large-scale gas in Abu Dhabi, where it already holds 10% of the Ruwais LNG project. The sale of the 8.5% net interest in Malaysia's Marjoram gas field is for US$350 million. MethaneLive uses real-time monitoring across 13,000 sensors and has already detected 35 fugitive methane emissions, supporting lower operating risk and emissions quantification.

TotalEnergies has agreed to sell its 85% interest in Block 2E offshore Malaysia, which represents a net 8.5% stake in the Marjoram gas field currently under development, to INPEX for USD 350 million. The transaction allows TotalEnergies to crystallize the full value of this minority, non-operated interest and refocus on its operated portfolio and strategic growth opportunities in Malaysia. Nicolas Terraz, President Exploration & Production at TotalEnergies, said the deal aligns with the company's strategy of actively managing its portfolio and prioritizing material positions to support low-cost, low-emission projects. TotalEnergies has been present in Malaysia since 1985 and became the country's third-largest gas producer following the acquisition of SapuraOMV Upstream.

BP has signed an agreement with ADNOC and other partners to develop the Bab Gas Cap project in the United Arab Emirates, taking a 10% stake. ADNOC will hold a 60% majority stake, with TotalEnergies also at 10%, CNPC International at 8%, INPEX at 5%, China ZhenHua Oil at 4%, and GS Energy at 3%. The project aims to produce up to 1.5 billion cubic feet of natural gas per day from the onshore Bab field, one of Abu Dhabi's largest onshore oil fields, and will support domestic gas and condensate production as well as strengthen ADNOC's LNG exports, including the Ruwais LNG project. This marks BP's first direct access to upstream natural gas resources in Abu Dhabi, and the company will act as the asset lead for the project.