Mitsubishi has recorded a ¥52bn (€330m) impairment on its Japanese offshore wind projects in its Q3 2024 earnings presentation.
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.
“We are revising our FY2024 forecast by segment in consideration of progress to date, and maintaining our consolidated forecast of ¥950.0 billion.”
On 3 February Mitsubishi announced a review of the business plans for its Japanese offshore wind power generation projects due to “material changes in the macroeconomic environment”.
Mitsubishi, through a consortium led by subsidiary Mitsubishi Corporation Offshore Wind, is developing offshore wind projects in three Japanese sea areas of Noshiro City, Mitane Town and Oga City (Akita Prefecture), Yurihonjo City (Akita Prefecture) and Choshi City (Chiba Prefecture).
Though it has made progress in its development activities in partnership and consultation with the various parties involved, Mitsubishi stated: “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.”