Inpex Sets Sights on 2027 FID for Indonesian LNG Project: A High-Stakes Gamble

Inpex, the Japanese energy giant, is taking a bold step by targeting a Final Investment Decision (FID) for its Abadi LNG project in Indonesia by 2027. This move comes as the company’s stock price continues to fluctuate wildly, with a 52-week high of 2628 JPY in April 2024 and a low of 1700 JPY in August 2024. As of the last available data, Inpex closed at 1930 JPY, leaving investors wondering if this is a calculated risk or a desperate attempt to stay afloat.

Financial Metrics Raise Red Flags

A closer look at Inpex’s valuation metrics reveals a concerning picture. With a price-to-earnings ratio of 5.49 and a price-to-book ratio of 0.47166, the company’s financial performance is far from impressive. These metrics suggest that investors are not getting value for their money, and the company’s stock price may be artificially inflated.

Is Inpex’s FID Target a Pipe Dream?

The question on everyone’s mind is whether Inpex’s FID target for 2027 is a realistic goal. With the company’s financial performance and stock price volatility, it’s hard to imagine how they will be able to secure the necessary funding and approvals to move forward with the project. Will Inpex’s FID target be a pipe dream, or will they somehow manage to pull off this high-stakes gamble?

The Risks Are Real

The risks associated with Inpex’s FID target are real and significant. If the company fails to meet its target, it could lead to a further decline in stock price, potentially wiping out investor value. Moreover, the failure of the Abadi LNG project could have far-reaching consequences for the company’s reputation and future prospects.

The Clock is Ticking

The clock is ticking for Inpex, and the company needs to deliver on its FID target if it wants to stay in the game. With its financial performance and stock price volatility, the stakes are high, and the risks are real. Will Inpex be able to pull off this high-stakes gamble, or will it become another cautionary tale in the world of energy investing?