SEATTLE (Oil Monster): The Middle Eastern geopolitical situation has led Inpex Corporation to increase its net profit prediction for the 2026 fiscal year. This also accounts for an increase in crude oil prices and a decrease in Japanese currency value.
With this prediction, Inpex forecasts its annual net profit to be between 350 and 450 billion Japanese yen, raised from a previous 330 billion. The company factors profit estimates within a range to account for unpredictable factors, in this case, the Middle Eastern war.
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In addition to these changes, Inpex has changed its forecast for the price of a barrel of Brent crude to be between $70-83 from $63, and the dollar to yen exchange rate from 151 to 154-156.
The company has reduced its forecast for annual production volume to 630,000 barrels of oil from the equivalent of 655,000. This is due to decreased output within Abu Dhabi because of issues surrounding the Hormuz Strait.
Selling prices have led to a 13.5% decrease in first-quarter profits, which are now 109.4 billion yen.
Inpex plans on strengthening Japan’s supply of energy by switching its supplies from its Ichthys LNG project in Australia and its supplies from Azerbaijan. This project supports Japan’s supply security during a disruption.
