Aug 22, 2023 | Business
Mitsubishi Heavy Industries, Ltd. (MHI) and NIPPON SHOKUBAI CO., LTD. (Nippon Shokubai) have reached an agreement on joint development of an ammonia cracking system, expecting establishment of a hydrogen and ammonia supply chain that enables high-volume transport.
Ammonia is garnering attention today as a hydrogen carrier that enables safe transport and storage of hydrogen, a fuel that emits no CO2 when combusted, in large volumes over great distances. Plans to establish supply chains are underway worldwide, notably in Europe, while in Japan a “Fuel Ammonia Supply Chain Establishment” project is in progress. This market is expected to grow in the years ahead.
Ammonia “cracking” is a technology indispensable for extracting ammonia’s hydrogen component, and therefore it plays an important role in building supply chains. In the newly agreed project to jointly develop an optimal ammonia cracking system using an ammonia cracking catalyst, MHI will contribute significant global expertise delivering ammonia and other chemical plants, and its technologies in handling ammonia and hydrogen. Nippon Shokubai has developed and successfully implemented numerous catalysts, such as process catalysts for acrylic acid and others, as well as environmental purification catalysts, including automotive catalysts and exhaust gas catalysts. Nippon Shokubai will leverage the achievements and insights gained from such catalytic technologies in the development of the ammonia cracking catalyst. The hydrogen extracted from the new cracking system can be utilized as a clean fuel and raw material. MHI and Nippon Shokubai are committed to driving the development forward, aiming to achieve for early commercialization.
Ammonia Cracking System
MHI Group today is pursuing a growth strategy in the area of Energy Transition, aiming for decarbonization on the energy supply side to support the Company’s goal of achieving Carbon Neutrality by 2040. Through the development and commercialization of an ammonia cracking system that will contribute to building a hydrogen and ammonia supply chain, the Company will strive for early establishment and execution of decarbonization technologies, as a way of contributing to the realization of a sustainable Carbon-Neutral world.
Nippon Shokubai is actively pursuing the “Strategic Transformation for Environmental Initiatives” outlined in the Group’s long-term vision “TechnoAmenity for the future” by 2030. The Company’s focus lies in advancing the prevalence of ammonia and hydrogen, alongside the promotion of the development and implementation of ammonia cracking catalysts. Nippon Shokubai will continue to provide materials and solutions required by people and society, while also contributing to a sustainable world.
About MHI Group
Mitsubishi Heavy Industries (MHI) Group is one of the world’s leading industrial groups, spanning energy, smart infrastructure, industrial machinery, aerospace and defense. MHI Group combines cutting-edge technology with deep experience to deliver innovative, integrated solutions that help to realize a carbon neutral world, improve the quality of life and ensure a safer world. For more information, please visit www.mhi.com or follow our insights and stories on spectra.mhi.com.
Copyright ©2023 JCN Newswire. All rights reserved. A division of Japan Corporate News Network.
Aug 4, 2023 | Business
Mitsubishi Heavy Industries (TSE Code: 7011) announced that order intake rose 75.1% year-over-year to YEN1,606.8 billion in the quarter ended June 30, 2023. Revenue rose 12.9% to YEN983.9 billion year-over-year, resulting in profit from business activities (business profit) of YEN51.9 billion, a 248.1% increase from the previous fiscal year, which represents a profit margin of 5.3%. Profit attributable to owners of parent (net income) was YEN53.1 billion, an increase of 177.1% year-over-year, with a profit margin of 5.4%. EBITDA was YEN85.1 billion, an 80.3% increase from Q1 FY2022, with an EBITDA margin of 8.7%, up 3.3 percentage points year-over-year.
Large orders growth in Energy Systems was driven by Gas Turbine Combined Cycle (GTCC), which continues to see strong demand for both new builds and after-sales services. Business profit in the segment increased by YEN27.0 billion YoY due to a reduction in one-time charges in the Thermal Power businesses as well as revenue growth and improved project margins in GTCC.
In Plants & Infrastructure Systems, revenue increased by YEN33.8 billion YoY due to contributions from Metals Machinery and Engineering, while business profit improved by YEN5.0 billion resulting from increased revenue in Metals Machinery as well as positive developments in Engineering and Machinery Systems’ project mix.
In Logistics, Thermal & Drive Systems, successful passthrough of cost inflation to sales prices mainly in Logistics Systems and Heating, Ventilation & Air Conditioning (HVAC) led to 14.3% and 16.6% YoY increases in order intake and revenue, respectively. Cost passthroughs in these businesses also helped to raise the segment’s business profit by YEN15.3 billion YoY.
Most notable this quarter is the striking growth in Aircraft, Defense & Space order intake, specifically in Defense & Space, which saw orders rise by YEN584.1 billion YoY. This is due to large orders for missile defense systems from Japan’s Ministry of Defense as the country seeks to improve its capabilities in this area.
CFO Message:
“MHI had a strong first quarter this fiscal year, achieving large year-over-year increases especially in order intake and profit,” Hisato Kozawa, MHI Chief Financial Officer commented.
Kozawa continued, “We are leveraging key market positions and robust capabilities in many important product areas to grow our order book, and we are particularly pleased with our gains in GTCC and Defense & Space. In parallel, we are improving revenue mix and executing on cost passthroughs among other profitability improvement initiatives. During the first quarter, the yen traded more weakly against foreign currencies than initially forecast, which in some cases gave a boost to our earnings. However, depreciation of the yen has proved to be a double-edged sword, leading to increased energy and other costs within Japan. As such, we will continue to monitor global market conditions closely. Finally, we have maintained our initial guidance for the full fiscal year, and we are confident in our ability to deliver on these commitments over the coming quarters.”
About MHI Group
Mitsubishi Heavy Industries (MHI) Group is one of the world’s leading industrial groups, spanning energy, smart infrastructure, industrial machinery, aerospace and defense. MHI Group combines cutting-edge technology with deep experience to deliver innovative, integrated solutions that help to realize a carbon neutral world, improve the quality of life and ensure a safer world. For more information, please visit www.mhi.com or follow our insights and stories on spectra.mhi.com.
Note regarding forward looking statements:
Forecasts regarding future performance as outlined in these materials are based on judgments made in accordance with information available at the time they were prepared. As such, these projections include risk and uncertainty. Investors are recommended not to depend solely on these projections when making investment decisions. Actual results may vary significantly due to a number of factors, including, but not limited to, economic trends affecting the Company’s operating environment, fluctuations in the value of the yen to the U.S. dollar and other foreign currencies, and Japanese stock market trends. The results projected here should not be construed in any way as a guarantee by the Company.
Topic: Press release summary
Mar 18, 2023 | Business
Mitsubishi Heavy Industries Power IDS Co., Ltd., a part of Mitsubishi Heavy Industries (MHI) Group, has received an order for a renovation project to enhance the output of steam turbine generators at the Renwu Refuse Incineration Plant, a waste incineration facility in Kaohsiung, Taiwan. The renovation contract was concluded with Onyx Ta-Ho Environmental Services Co., Ltd. (Taipei), a major waste disposal company that handles operations and maintenance (O&M) for the facility.
The Renwu Refuse Incineration Plant is located in the Renwu District of Kaohsiung City, northeast of the city center. The initial 21-year contract period, begun when responsibility for O&M was transferred from the city’s Environmental Protection Bureau to a private company, has now concluded. As the contract has been renewed for a further 15 years with Onyx Ta-Ho in charge of O&M, improvement work for core equipment is to be conducted. The conclusion of renovation work and start of operations is scheduled for mid-2024.
The contracted renovation project is for steam turbine generators originally supplied by MHI in 1998. The scope of the project has been kept to a minimum, with components carefully selected for upgrade in order to make the best possible use of the existing equipment and improve efficiency. By optimizing the design of the turbine casing and internal equipment based on the changes in operating conditions since the plant was built, the project is expected to enhance power generation output markedly. Mitsubishi Heavy Industries Power IDS was awarded this contract in recognition of its advanced engineering proposal, along with past performance and reliability that has ensured stable operations for more than two decades.
Onyx Ta-Ho was established in 1992 as a joint venture between the French company Veolia, a major general environmental services firm, and Taiwan Cement Corporation. Taking advantage of favorable trends in the Taiwanese government toward privatization of waste treatment facilities, Onyx Ta-Ho has expanded its O&M business throughout Taiwan. This renovation project for core facilities, by providing for more efficient use of the heat generated from waste incineration, will enhance the cost performance of O&M, and is expected to contribute to the energy efficiency and CO2 reductions Taiwan is pursuing as a policy measure.
Like Japan, Taiwan has a large number of small and mid-sized industrial thermal power facilities (boilers and turbines) in operation, not just waste incinerators. Decarbonizing these facilities has become a major concern for industry. As part of MHI Group, Mitsubishi Heavy Industries Power IDS will utilize its technological capabilities to contribute to decarbonization and the realization of a carbon neutral world, while ensuring a stable energy supply for industry.
About MHI Group
Mitsubishi Heavy Industries (MHI) Group is one of the world’s leading industrial groups, spanning energy, smart infrastructure, industrial machinery, aerospace and defense. MHI Group combines cutting-edge technology with deep experience to deliver innovative, integrated solutions that help to realize a carbon neutral world, improve the quality of life and ensure a safer world. For more information, please visit www.mhi.com or follow our insights and stories on spectra.mhi.com.
Feb 8, 2023 | Business
Mitsubishi Heavy Industries (TSE Code: 7011) announced that order intake rose 19.0% year-over-year to YEN2,966.1 billion in the third quarter ended December 31, 2022. Revenue rose 11.1% to YEN2,938.0 billion year-over-year, resulting in business profit of YEN105.2 billion, a 30.3% increase from the previous fiscal year, which represents a profit margin of 3.6%. Net income was YEN66.4 billion, an increase of 32.8% year-over-year, with a profit margin of 2.3%. EBITDA was YEN208.6 billion, a 16.4% increase from FY2021, with a profit margin of 7.1%, up 0.3 percentage points year-over-year.
Other highlights included orders and revenue growth in Nuclear Power, Aero Engines, HVAC, and Commercial Aviation. YoY improvements in profitability were mainly seen in Energy Systems and Aircraft, Defense & Space resulting from revenue growth in Nuclear Power and Aero Engines as well as foreign exchange effects combined with fixed cost reductions in Commercial Aviation.
FY2022 Guidance:
MHI revised its guidance for the period ending March 31, 2023, with company-wide totals unchanged from the most recent revision made on November 1, 2022, while updating business profit in Energy Systems and Aircraft, Defense & Space.
CFO Message:
“MHI have had a stable first three quarters this fiscal year,” Hisato Kozawa, CFO of MHI commented. “We saw increases in orders and revenue in three out of four reporting segments arising from business expansion and benefits from the depreciation of the yen. Performance was especially strong in GTCC, Nuclear Power, Logistics Systems, and HVAC.” Kozawa continued, “That said, we still have our work cut out for ourselves in the fourth quarter as we work to offset profitability issues caused by a variety of factors such as global inflation using all of the tools available to us. Our goal for this fiscal year is to set the stage for a successful FY2023, during which we aim to achieve the targets laid out in our 2021 Medium-Term Business Plan.”
About MHI Group
Mitsubishi Heavy Industries (MHI) Group is one of the world?s leading industrial groups, spanning energy, smart infrastructure, industrial machinery, aerospace and defense. MHI Group combines cutting-edge technology with deep experience to deliver innovative, integrated solutions that help to realize a carbon neutral world, improve the quality of life and ensure a safer world. For more information, please visit www.mhi.com or follow our insights and stories on spectra.mhi.com.
For more information, visit www.mhi.com/news/23020701.html.
Topic: Press release summary
Nov 30, 2022 | Business
Mitsubishi Heavy Industries, Ltd. (MHI) and Mitsubishi Heavy Industries Engineering, Ltd. (MHIENG) have agreed to integrate the business operations of MHIENG with those of MHI effective April 1, 2023. Under an absorption-type split arrangement, operations currently conducted by MHIENG will be taken over by MHI and placed under the direct management of MHI’s president and CEO. The integration of MHIENG into MHI will further accelerate the “Energy Transition” that serves as one of MHI Group’s central growth engines.
In its 2021 Medium-Term Business Plan released in October 2020, MHI Group announced plans to substantially increase its corporate value by 2030 with “Energy Transition” and “Smart Infrastructure (New Mobility & Logistics)” serving as the Company’s two growth engines. In striving to strengthen its Energy Transition business, development of a CO2 solutions ecosystem is a component of major importance. Today, carbon capture, utilization and storage (CCUS) is garnering attention as an effective means for realizing a carbon neutral society. Also, ammonia is recognized to be effective both as a fuel for ships and thermal power plants, where its usage results in reduced carbon emissions, and as a means for transporting hydrogen, and the market for ammonia is expected to grow sharply in the coming years. In response, MHI is now pursuing a broad array of initiatives for establishing markets for carbon-free hydrogen and ammonia, including development of a hydrogen ecosystem and partnering with external incubation investments. The Company is also fortifying its capabilities in integrating multiple product areas.
MHIENG was launched in January 2018 as an MHI Group company. Today it provides world-class technologies in the engineering, manufacture, procurement, construction, marketing and after-sale servicing of chemical plants, transportation systems, carbon capture systems, etc. Furthermore, besides its prowess in carbon capture technologies, MHIENG has abundant experience in applications involving ammonia and hydrogen. Following its integration into MHI, MHIENG’s project management capabilities in chemical plants and transportation systems, together with its core technologies in value chain development, will be organically combined with MHI’s technologies. The resulting comprehensive capabilities will further accelerate MHI Group’s solutions businesses in both Energy Transition and New Mobility & Logistics.
Through the forthcoming integration, MHI Group will further contribute to making effective use of resources and reducing environmental impacts, continuing the challenge to achieve a carbon neutral society.
About MHI Group
Mitsubishi Heavy Industries (MHI) Group is one of the world’s leading industrial groups, spanning energy, smart infrastructure, industrial machinery, aerospace and defense. MHI Group combines cutting-edge technology with deep experience to deliver innovative, integrated solutions that help to realize a carbon neutral world, improve the quality of life and ensure a safer world. For more information, please visit www.mhi.com or follow our insights and stories on spectra.mhi.com.
Copyright ©2022 JCN Newswire. All rights reserved. A division of Japan Corporate News Network.
