The group also warned it is re-evaluating all of its assets and may book impairment losses on some depending on the oil price outlook and a review of project plans.
It will make an announcement on that once it has determined any financial impact, it said.
Inpex is now predicting a net profit of 10 billion yen (US$93 million) for this calendar year, against its February estimate of 145 billion yen. It also cut its annual dividend forecast to 24 yen a share from 36 yen.
The revised forecast is based on an assumption of an average Brent oil price of US$35.2/bbl this year, down from its earlier assumption of US$60, it said in a statement.
For the January-March quarter, net profit fell 32% to 33.6 billion yen from a year earlier, hit by a plunge in oil prices.
Inpex said it plans to shore up cash flow in the face of the oil price drop by cutting development spending by over 20% and exploration investment by over 40% from its February plans.
The company has already secured liquidity in the form of cash and a credit line from banks, but plans to seek further bank loans to stabilise its financial base, it said.
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