Japan's largest upstream company Inpex Tuesday cuts its fiscal 2015-2016 (April-March) net profit forecast by half to Yen 26 billion ($235.3 million), as a result of its latest review on producing upstream assets in the US, following the decline in crude oil prices, the company said.
Inpex said the downward revision was due to an impairment loss of Yen 25.5 billion from the Lucius oil field asset at Keathley Canyon blocks 874/875/918/919 in the US Gulf of Mexico, noting that the recoverable amount of this asset is expected to fall below the carrying amount.
As part of the latest review, Inpex will also recognize one-off losses from offshore Angola Block 14, a shale gas project in Canada and JPDA06-105 Block in the joint petroleum development area of Timor Sea, it added.
In its forecast on February 4, Inpex had expected to post a net profit of Yen 52 billion for the fiscal year to March 31.
