Mid-term Business Plan
Mid-term Business Plan 2021-2023
In February 2021, MODEC group announced Mid-term Business Plan 2021-2023, which defines a three-year business strategy starting from FY2021.
The global energy demand was temporally lower in 2020 due to the impact of COVID-19, but oil demand is unlikely to decline sharply. Potential demand for FPSO/FSO is expected to remain consistent at the current oil price level, and development of new projects is also expected to proceed steadily in a short to mid-term. Meanwhile, the policies to protect environment such as the promotion of introduction of electric vehicles and the renewable energy have been adopted in many countries around the world, and decarbonization activities will be accelerating in the oil and gas industry as well.
Based on the above business environment, we have defined our goal that we should achieve through the Business Model Evolution as "Become the Offshore Industry’s Global Leader exploring Potential of the Ocean and Sustainable Future" in our Long-term Vision.
In our Mid-term Business Plan 2021-2023, the Business Model Evolution by continuing the cycle of "Reinforcement of FPSO Business", "Reinforcement of Business Foundation" and "Response to Environmental & Social Changes" is defined as Mid to Long-term strategies, and the following four key initiatives will be implemented during Mid-term Business Plan Period in order to recover profitability and achieve our Long-term Vision.
- Asset Integrity Improvement
- Digitalization Strategy Acceleration
- R&D: Incubation of Next Business after FPSO
- Actions in response to Environmental and Social Demand
As quantitative goals, we aim to achieve:
- Net Profit of USD 200 MM
- ROE 12%
at the end of FY2023.