Inpex Logs Solid 1st-Half Earnings, Lifts Annual Outlook

Tokyo, Nov. 9 (Jiji Press)–Natural resources developer Inpex Holdings Inc. on Friday reported solid group earnings for April- September due to strong demand and surging prices of oil and natural gas.

In the first half of fiscal 2007, net profit jumped 25.3 pct from a year earlier to 81,045 million yen, and operating profit increased 9.2 pct to 325,966 million yen, said Inpex Holdings, which controls Inpex Corp. and Teikoku Oil Co. Sales grew 10.6 pct to 554,173 million yen.

Following the robust first-half performance, Inpex Holdings revised up its group earnings projections for the full year to next March.

It now expects to report a net profit of 127 billion yen, up from the previous forecast of 120 billion yen, and an operating profit of 557 billion yen, up from 529 billion yen. Sales are seen totaling 1,027 billion yen, up from 1,008 billion yen.

The projections are based on the assumption that crude oil prices will average 60 dollars per barrel in the October-March second half. The company also set its in-house exchange rate at 115 yen to the dollar.

The assumed crude price is much lower than current market price levels. Commenting on this, Mutsuhisa Fujii, an Inpex Holdings board director, told reporters that the current market uptrend reflects an inflow of massive speculative money and that crude oil prices will probably start heading down. [EARNINGS]END

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