What is INPEX?
INPEX (Stock Code: 1605) ranks among Japan’s largest energy companies, focusing on oil and natural gas exploration, production, LNG (liquefied natural gas) exports, and renewable energy investments. INPEX plays a key role in Japan’s national energy strategy and is listed on both the Nikkei Index and TOPIX.
Driven by global energy restructuring and carbon neutrality targets, INPEX has been steadily evolving from a traditional oil and gas enterprise into a comprehensive energy group. The company is actively branching into solar, energy storage, and other green initiatives to maintain its competitive edge in the ongoing energy transition.
Recent Stock Price and Valuation Performance
As of mid-October 2025 (UTC), INPEX’s stock price ranged between ¥2,600 and ¥2,700, offering a dividend yield of about 4%. Its price-to-earnings ratio (P/E ratio) stands at roughly 8x, with a price-to-book ratio (P/B ratio) around 0.6–0.7x, indicating a generally low valuation.
This suggests the market maintains a cautious outlook on INPEX, yet for value-oriented investors, it presents a potential buy opportunity. With global energy prices stabilizing and key projects advancing, the stock could see a valuation recovery in the future.
Key Project Updates and Business Deployment
- Indonesian Abadi LNG project enters design phase: As a strategic focus for INPEX, the Abadi LNG project has reached the Front-End Engineering Design (FEED) stage. INPEX holds approximately 65% ownership and expects to make a final investment decision around 2027. Once operational, this project should substantially boost long-term cash flow.
- Renewable energy initiatives in Australia: INPEX is partnering with local firms to build solar power and energy storage projects, with an installed capacity of nearly 100 megawatts. This marks the company’s move from fossil fuels toward renewables and helps develop technical expertise for future growth.
- Expansion in Norwegian oil and gas investments: INPEX is teaming up with major global energy players to develop new oil and gas fields in the North Sea, further expanding its footprint in the European energy market.
- LNG facility maintenance: INPEX recently completed extensive maintenance at its Ichthys LNG plant near Darwin, Australia. While this affected short-term earnings, it supports stable long-term operations.
Investment Highlights and Potential Risks
Highlights:
- Distinct valuation advantage: INPEX’s low P/E ratio and consistent dividends make it a compelling long-term investment among Japanese energy stocks.
- Robust long-term project pipeline: The Indonesian LNG and Australian energy projects promise strong future cash flows.
- Significant policy support: As a national energy leader, INPEX enjoys favorable policy and financing conditions.
Risks:
- Volatility in global oil and gas prices: Fluctuations in energy prices remain the biggest variable impacting profits.
- Project delays or cost overruns: Large LNG projects are complex, and any setbacks can drag down earnings.
- Regulatory pressure from carbon reduction policies: Accelerating global energy transition forces traditional oil and gas companies to ramp up environmental investments.
Investment Advice for Beginners
If you’re new to INPEX stock, consider gradually increasing your holdings during price pullbacks or when major project updates are announced. Pay close attention to global crude oil prices, company financial results, and government energy policies. Over the medium to long term, INPEX offers substantial strategic value, especially given the dual priorities of energy security and energy transition.
