Nippon Yusen plans 1.2 trillion yen investment in 4 years, boosts shareholder return
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JAPANESE shipping and logistics company Nippon Yusen KK said on Friday (Mar 10) that it plans to invest 1.2 trillion yen (S$11.9 billion) in the next four years, with 290 billion yen to be spent on decarbonising its vessels to help achieve its 2050 goal of carbon neutrality.
Unveiling the new business plan for the four years starting in April, the company also raised its dividend payout ratio goal to 30 per cent from the current 25 per cent while making a commitment to buy its own shares worth 200 billion yen in the next two years.
“We want to go beyond the current framework of a comprehensive logistics company and create the value necessary for the future by deepening our core businesses and growing new businesses,” president Hitoshi Nagasawa told a news conference.
Out of the planned 1.2 trillion yen investment budget, 560 billion yen will be allocated to liquefied natural gas (LNG) and dry bulk carriers, 140 billion yen on mergers and acquisitions in logistics and 100 billion yen on new businesses, including offshore wind power, hydrogen and ammonia.
To slash greenhouse gas emissions from its vessels, the company plans to build 31 vessels fuelled by LNG and others fuelled by liquefied petroleum gas, ammonia and methanol by 2030.
“We plan to increase the number of LNG-fuelled vessels by around 2030, then start adding more ammonia-fuelled vessels from mid-2030s,” chief financial officer Takaya Soga said.
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“For the vessels that are not easy to switch fuel, we will use bio-fuels and carbon offset,” said Soga, who will become the president from April.
The net profit target in the year to March 2027 was set at 240 billion yen, below its forecast profit of one trillion yen for the current year.
“Business conditions in the past two years were extremely special due to disruptions of global logistics amid the pandemic,” Nagasawa said.
“If you compare the new goal with our profits from pre-pandemic time, our profit is on track for a steady growth,” he said. REUTERS
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