Mitsubishi Corporation has reported an impairment of ¥52.2 billion (€330 million) on its Japanese offshore wind projects in its Q3 2024 earnings presentation. The company disclosed the losses within its Power Solution segment, attributing the impairment to the challenges faced in the offshore wind business.
The company stated, “We recorded impairments and other losses of ¥52.2 billion in our Japanese offshore wind power business in the Power Solution segment in Q3. We are currently reviewing the business plans for the related projects, and will announce the next steps in due course.”
As part of its response, Mitsubishi also announced a revision to its fiscal year 2024 forecast by segment, although it confirmed that its consolidated forecast of ¥950 billion remains unchanged.
On February 3, Mitsubishi had revealed that it was reassessing its offshore wind power generation projects in Japan due to “material changes in the macroeconomic environment.” The company, through a consortium led by its subsidiary Mitsubishi Corporation Offshore Wind, is developing several offshore wind projects across different regions in Japan, including Noshiro City, Mitane Town, and Oga City in Akita Prefecture, as well as Yurihonjo City and Choshi City.
Mitsubishi highlighted that despite making progress in development activities in partnership with local stakeholders, the company faced significant challenges due to the evolving global market conditions. It noted, “However, in the wake of the pandemic and the Ukraine crisis, the business environment for offshore wind power has significantly changed and is continuing to change worldwide due to factors such as inflation, the depreciation of the yen, tight supply chains, and rising interest rates.”
The company’s decision to review its plans reflects the impact of these shifting macroeconomic factors on its offshore wind projects and its commitment to reassessing its approach to ensure long-term viability.
