Inpex cuts income forecasts on Canada shale gas impairment

Japan’s exploration and production giant Inpex revised financial forecasts for the fiscal year ending March 31, due to impairment charges on its Canadian shale gas project. 

Inpex slashed its net income forecast to 38 billion yen ($361.8 million) from 52 billion yen previously, a 26.9 percent decrease.

The company said impairment tests were conducted on assets of the shale gas project in Canada in light of the decline in forecasted natural gas process in the Americas.

The impairment losses amounted to approximately 76 billion yen ($723.6 million), the company said. Inpex added that the latest Ichthys LNG delay will have no impact on the profit outlook.

The company expects its net sales of 925 billion yen and an operating income of 352 billion yen, above the February 8 forecast.