Inpex Corp. (1605) lifts earnings forecast amid strong oil and gas markets
Inpex Corp. shares advanced on Thursday, influenced by the company's upward revision of its earnings forecast and ongoing strength in crude oil and gas markets. The Japanese energy producer's stock is trading at ¥3,707, marking a 3.9% increase from its previous close of ¥3,567.
The positive sentiment stems from Inpex's revised consolidated earnings outlook, announced on 13 May 2026. The company upgraded its forecasts for both the six months ending 30 June 2026 and the full year ending 31 December 2026, citing stable operations at its Ichthys project, alongside updated assumptions for crude oil prices and exchange rates. This optimistic projection is further supported by elevated crude oil prices, driven by geopolitical uncertainties in the Middle East, and favourable currency exchange rates.
Adding to the upward pressure, recent reports detailing escalating strike actions at Australian LNG facilities, including Inpex's Ichthys plant, have heightened concerns regarding potential supply disruptions in global gas markets. This situation is expected to benefit oil and gas producers such as Inpex, contributing to the stock's current trajectory.
Why Australian LNG Strikes Are Boosting Inpex's Shares
Inpex Corp. is a major Japanese energy company that finds, develops, produces, and sells crude oil and natural gas across the globe. They operate substantial projects in regions like Australia and the Middle East, supplying energy to power companies, industrial customers, and households. Their liquefied natural gas (LNG) operations, supported by stable supply capabilities and long-term contracts, form a significant part of their business and revenue.
The most significant factor influencing Inpex's share price today is the escalating strike action at Australian LNG facilities. Reports of intensifying labour disputes at key sites, including Inpex's own Ichthys plant, have heightened concerns about potential supply disruptions in the global gas market. This situation typically leads to an expectation of higher energy prices, particularly for natural gas, which in turn improves the earnings outlook for oil and gas producers like Inpex. Other factors, such as an upward revision to their earnings forecast announced on 13 May, rising crude oil prices, and a favourable weak yen, are also contributing to investor confidence.
Against this backdrop of market concerns over supply, Inpex's shares have risen by an exact 3.9% from yesterday's close of ¥3,567, and are currently trading at ¥3,707.
Consider a scenario where a critical component for manufacturing a popular product faces production issues at a major supplier. If your company is one of the few alternative suppliers capable of providing that component reliably, the market will likely re-evaluate your company's value upwards, anticipating increased demand and potentially higher prices for your output. This mirrors how Inpex is perceived when key LNG supplies are threatened.
Inpex Corp.
Inpex Corporation engages in the research, exploration, development, production, and sale of oil, natural gas, and other mineral resources in Japan, rest of Asia and Oceania, Europe and NIS countries, the Middle East and Africa, and the Americas. It is also involved in the investment and lending to the companies engaged in mineral resources business, etc. In addition, the company transports natural gas, as well as operates, manages, and maintains gas pipelines. As of December 31, 2021, its proved reserves were 2,704 million barrels for crude oil, condensate, and LPG; and 5,118 billion cubic feet for natural gas, for a total of 3,645 million BOE. Inpex Corporation was founded in 1966 and is headquartered in Tokyo, Japan.