MITSUI E&S : Notice Regarding Recording of Gains on Sale of Affiliate Shares (on Non-Consolidated Basis)
May 14, 2024 at 03:16 am EDT
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Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.
May 14, 2024
Company name:
Mitsui E&S Co., Ltd.
Name of representative:
Takeyuki Takahashi, President,
Representative Director, and CEO
(Securities code: 7003, TSE Prime Market)
Inquiries:
Shintaro Hasegawa, General Manager of
Public Relations Sect.
(TEL: +81-3-3544-3147)
Notice Regarding Recording of Gains on Sale of Affiliate Shares (on Non-Consolidated Basis)
Mitsui E&S Co., Ltd. (the "Company") hereby announces that it expects to submit an Extraordinary Report, in connection with its sale of affiliate shares that was resolved at the Board of Directors' meeting held today, to report an event which may have an effect on the Company's non-consolidated financial statements as set forth in Article 19.(2).(xii) of the Cabinet Office Order on Disclosure of Corporate Affairs.
Summary of the Extraordinary Report to Be Submitted
The Company expects to record gains of approximately 5 billion yen on the sale of its shares in affiliate SOFEC, Inc. ("SOFEC") to SOFEC as extraordinary gains in its non-consolidated financial statements for the fiscal year ending March 2025.
SOFEC is a subsidiary of MODEC International, Inc., a U.S. subsidiary of MODEC, Inc. ("MODEC"), which is an affiliate of the Company, and provides services related to the design, construction, and installation of various mooring systems including FPSOs. Since SOFEC holds key fundamental technologies in FPSOs, the Company has decided to transfer its shares in SOFEC to MODEC to strengthen the business of the MODEC group. As a result, SOFEC will become a wholly owned subsidiary of MODEC International, Inc.
The gains on sale will be partially eliminated in the consolidated financial statements and the impact on the consolidated results of the Company will be negligible.
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Mitsui E&S Co Ltd, formerly Mitsui E&S Holdings Co Ltd, is primarily engaged in ship, marine development, machinery, and engineering businesses. The Company operates its business through four segments. The Ship segment provides ships, naval vessels, high-speed passenger ships, offshore structures, underwater equipment, design engineering services, ship-related equipment and machinery, and steel structures. The Marine Development segment provides floating offshore oil and gas production, storage, and offloading facilities. The Machinery segment provides marine and land-use diesel engines, marine equipment, gas engines, steam turbines, blowers, compressors, gas turbines, among others. The Engineering segment provides power generation projects and general overseas civil engineering and construction work. The Company also engages in land-based diesel power plant business, information and communication equipment business, system development business, gas-related engineering, among others.
MITSUI E&S CO., LTD. 
