Inpex Books $1.15bn Q2 Loss on Impairments

Japanese oil and gas firm Inpex suffered a yen 120.8bn ($1.15bn) net loss in the first half of the year, according to results it published on August 6, versus a yen 82.5bn profit a year earlier.

Total sales revenues fell 30.5% to yen 563bn, as weaker oil prices more than offset an increase in volumes. Revenues from gas sales were up 4.5% at yen 138.2bn, however.

By far the biggest factor behind Inpex's losses were yen 140bn in impairments at the company's LNG projects in Australia, booked to account for weaker prices. This included a yen 130.9bn charge at the Shell-operated 3.6mn mt/yr Prelude LNG project, where Inpex has a 17.5% position.

A further yen 8.9bn charge related to Inpex's 11.4% stake at the Bayu-Undan field. Bayu-Undan supplies gas to ConocoPhillips' 3.7mn mt/yr Darwin LNG project, in which Inpex also has a 11.4% share. The Japanese firm booked an additional yen 53bn in charges at US oil projects.