MODEC,INC. (6269) Stock Price

Mitsui Ocean Development provides EPCI services (engineering, procurement, construction, and installation) for floating production, storage, and offloading facilities (FPSO, FSO, TLP) used in the midstream sector of offshore oil and gas production. The company also offers leasing and operation services for these facilities. Its primary clients are government-backed and private oil and gas development companies overseas.

Mitsui Ocean Development's business focuses on the relatively stable development and production phases within the oil development process, which spans from exploration through production, refining, and sales. The company responds to the trend of major oil companies outsourcing equipment construction and operations to specialized providers by offering comprehensive solutions.

The company's main services include EPCI services that provide end-to-end design, procurement, construction, and installation of floating offshore oil and gas production facilities such as FPSOs. It also offers FPSO/FSO leasing, operation, and charter services. Through these offerings, the company supports clients from equipment ownership through operations.

Floating offshore oil and gas production facilities are broadly divided into fixed and floating types. Floating facilities require no infrastructure, have shorter construction periods, and are more economical. Mitsui Ocean Development primarily focuses on floating facility types including FPSOs, FSOs, and TLPs. These facilities support offshore oil and gas production and are particularly suited for production in deepwater areas.

Mitsui Ocean Development provides comprehensive solutions globally, encompassing EPCI, operations, and charter services. As a fabless company, it specializes in project management and outsources to suitable vendors worldwide. In leasing, charter, and operation businesses, the company establishes project-specific subsidiaries and operates through joint ventures with partners.

Mitsui Ocean Development is advancing its growth strategy with the recognition that oil and gas demand remains strong despite global decarbonization trends. The company is focusing particularly on FPSO business development in ultra-deepwater and deepwater oil and gas fields, leveraging its competitive advantages. In response to climate change, the company is proposing practical solutions for energy transition and pursuing further business expansion.

The company announced its medium-term management plan for 2024-2026 titled "Opening a Sustainable Future through Innovation." The plan strengthens revenue generation as its foundation while advancing decarbonization of FPSO operations, developing and nurturing new businesses, and reinforcing the business foundation including human capital. Through these initiatives, the company aims to achieve sustainable growth and enhance corporate value.

In executing the medium-term management plan, Mitsui Ocean Development achieved its 2024 net profit target ahead of schedule. Based on this progress, the company has revised upward its numerical targets for 2026, the final year of the plan, setting net income attributable to parent company shareholders at 300 million US dollars, ROE at 20.0%, and adjusted EBITDA at 450 million US dollars. The company continues to strengthen its business foundation to achieve these targets.

The company is advancing development of next-generation vessels for FPSO decarbonization and implementing Carbon Capture & Storage (CCS) technology. It is also pursuing new technology development in offshore wind power and alternative energy businesses, aiming to contribute to the transition to a low-carbon society. A dedicated new business organization has been established to strengthen business development capabilities.

Additionally, Mitsui Ocean Development is deepening collaboration and synergies across the group. The company is implementing management tools utilizing digital technology and establishing working groups to advance human capital management, leveraging expert insights to formulate talent strategies. These efforts enhance the competitiveness of the entire group.